Five Below Inc (FIVE) 2012 Q3 法說會逐字稿

Good day everyone, and welcome to the Five Below third quarter earnings conference call. Today's conference is being recorded. And, at this time, I will turn the conference over to Farah Soi of ICR. Please, go ahead, Miss Soi.

大家好，歡迎參加「五以下」第三季財報電話會議。今天的會議正在錄製中。此時，我將把會議交給 ICR 的 Farah Soi。請繼續吧，索伊小姐。

Thank you, operator. Good afternoon everyone, and thanks for joining us today for Five Below's third quarter 2012 financial results conference call. On today's call are Tom Vellios, Co-Founder, President, and Chief Executive Officer, and Ken Bull, Chief Financial Officer, Secretary, and Treasurer. After management have made their formal remarks we will open the call to questions.

謝謝你，接線生。大家下午好，感謝您今天參加我們的 Five Below 2012 年第三季財務業績電話會議。出席今天電話會議的包括共同創辦人、總裁兼執行長 Tom Vellios 和財務長、秘書兼財務主管 Ken Bull。在管理層發表正式講話後，我們將開始提問。

I need to remind you that certain comments made during this call may constitute forward-looking statements and our made pursuant to and within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.

我需要提醒您的是，在本次電話會議中發表的某些評論可能構成前瞻性陳述，並且我們根據1995 年《私人證券訴訟改革法案》修訂版的安全港條款並在其含義範圍內發表了這些評論。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與此類陳述有重大差異。

Those risks and uncertainties are described in the press release and Five Below's prospectus filed with the SEC and also in the third quarter 10-Q, which will be filed later today, November 29, 2012. The forward-looking statements made today are as of the date of this call and we do not undertake any obligation to update our forward-looking statements. Finally, we may refer to certain adjusted, or non GAAP, financial measures on this call.

這些風險和不確定性在新聞稿和Five Below 向SEC 提交的招股說明書以及將於今天晚些時候（即2012 年11 月29 日）提交的第三季度10-Q 今天發表的前瞻性聲明截至本次電話會議的日期，我們不承擔更新前瞻性陳述的任何義務。最後，我們可能會在這次電話會議上提及某些調整後的或非公認會計原則的財務指標。

A reconciliation schedule showing the GAAP versus non-GAAP financial measures is available in our press release issued today. If you do not have a copy of today's press release you may obtain one by visiting the Investor Relations page of our website at fivebelow.com.

我們今天發布的新聞稿中提供了顯示 GAAP 與非 GAAP 財務指標的調整表。如果您沒有今天新聞稿的副本，您可以造訪我們網站 Fivebelow.com 的投資者關係頁面以取得一份。

I will now turn the call over to Five Below's Co-Founder, President, and Chief Executive Officer, Tom Vellios.

現在我將把電話轉給 Five Below 的共同創辦人、總裁兼執行長 Tom Vellios。

Good afternoon, thank you, Farah, and thanks everyone for joining us for our third quarter earnings call.

下午好，謝謝法拉，也謝謝大家參加我們第三季的財報電話會議。

I will begin by discussing the highlights of our third quarter results. Ken will then review our financial results in more detail after which I will provide some closing comments before we open up the call to your questions.

我將首先討論我們第三季業績的亮點。然後，肯將更詳細地審查我們的財務業績，然後在我們開始回答您的問題之前，我將提供一些總結評論。

Before I discuss Q3 I just want to take a moment to extend our thoughts to the millions of people affected by the devastation of Hurricane Sandy a month ago. As you know, Five Below has a significant store concentration in the affected areas. We had stores closing early, opening late, or closed for entire days from October 28 until about November 4. At the heart of the storm approximately 50% of our stores were impacted.

在討論第三季之前，我想花點時間向一個月前遭受桑迪颶風破壞的數百萬人表達我們的想法。如您所知，Five Below 的商店集中在受影響的地區。從 10 月 28 日到 11 月 4 日左右，我們的商店提前關門、開門晚，或整天關門。

I have to commend our store teams, who did an outstanding job getting our stores reopened in a timely fashion. However, the impact of this weather event extended beyond just the hours or days that a portion of our stores remained closed. Customers had priorities other than shopping in the days after the storm as they began the recovery and rebuilding process.

我必須讚揚我們的商店團隊，他們做得非常出色，讓我們的商店及時重新開業。然而，這種天氣事件的影響超出了我們部分商店關閉的數小時或數天的範圍。在風暴過後的幾天裡，當顧客開始恢復和重建過程時，除了購物之外，他們還有其他更重要的事情要做。

In addition we had to weather some temporary disruptions in our supply chain. Our supports in the Northeast coped with hurricane impact delays and some shipments sustained water damage. While this weather event and its aftermath impacted the start of the fourth quarter, we are pleased to be up and running today from a merchandise standpoint of view.

此外，我們還必須應對供應鏈的一些暫時中斷。我們在東北部的支持應對了颶風影響導致的延誤和一些貨物遭受水災的情況。雖然這一天氣事件及其後果影響了第四季度的開始，但從商品的角度來看，我們很高興今天能夠啟動並運行。

Our stores are ready for the holiday and we are well-positioned to meet our overall fourth quarter expectations. With respect to our third quarter results, I am very pleased to announce that the Five Below team once again delivered great results. Sales for the quarter were $87 million, up 40% from a year ago. Driven by store growth of 29% and a comp store sales increase of almost 9%.

我們的商店已為假期做好準備，我們已做好充分準備來滿足第四季度的整體預期。關於我們第三季的業績，我非常高興地宣布，「五人以下」團隊再次取得了出色的成績。該季度銷售額為 8,700 萬美元，比去年同期成長 40%。受到商店成長 29% 和同店銷售額成長近 9% 的推動。

Starting with store growth, we saw strong performance in stores we opened in both new and existing markets alike. During Q3 we opened 17 new stores to end the quarter with 243 stores in 18 states. Including one store that opened in November, we have opened 52 stores this year. And, while we still have holiday ahead of us, we are very pleased with the overall performance of the 2012 class. As in previous years we strive to complete the vast majority of our store openings by the end of Q3. And, we accomplished this once again this year. More than 50% of our 2012 store openings have been in existing markets.

從商店成長開始，我們在新市場和現有市場開設的商店都表現強勁。第三季度，我們新開了 17 家商店，到本季末，我們在 18 個州開設了 243 家商店。算上11月開業的1家店，今年我們已經開了52家店。雖然我們還有假期，但我們對 2012 年學生的整體表現感到非常滿意。與往年一樣，我們力求在第三季末完成絕大多數門市的開幕。今年我們再次實現了這個目標。 2012 年我們新開的商店中有 50% 以上位於現有市場。

New markets this year included St. Louis, Atlanta, and Western Michigan. And, that compares to 2011, which included store openings in markets such as Chicago and Detroit. With the performance of our new stores, we continue to feel very good about how the universal appeal of the concept is resonating with our customers. As we look to 2013, we believe we are well-positioned to meet are planned openings of approximately 60 stores. And we have already signed 50% of these leases. In addition to this new store performance the team is proud of the 8.8% comp we delivered for the third quarter. This was our 26th consecutive quarter of positive comp store sales growth beginning with the second quarter of 2006.

今年的新市場包括聖路易斯、亞特蘭大和西密西根。與 2011 年相比，2011 年在芝加哥和底特律等市場開設了新店。隨著新店的表現，我們繼續對這一概念的普遍吸引力與客戶產生共鳴感到非常滿意。展望 2013 年，我們相信我們已做好充分準備，可以滿足計劃開設約 60 家商店的要求。我們已經簽署了其中 50% 的租約。除了新店的業績外，團隊還為第三季實現的 8.8% 的業績成長感到自豪。自 2006 年第二季開始，這是我們連續第 26 季實現同店銷售額正成長。

We continue to see consistent performance across geographies and store vintages demonstrating the universal appeal of our unique value proposition, merchandising strategy, and our focus on the core teen and pre-teen customer. We strive to create excitement with our trend right product, $1.00 to $5.00 price points, and a differentiated store experience which spurs customer visits. And, it continued to serve as a traffic driver in the third quarter with back-to-school, media, candy, and room amongst the better performing categories for us.

我們繼續看到跨地域和商店年份的一致表現，證明了我們獨特的價值主張、銷售策略以及我們對核心青少年和青少年前客戶的關注的普遍吸引力。我們努力透過順應潮流的產品、1.00 美元至 5.00 美元的價位以及刺激顧客光顧的差異化商店體驗來創造興奮。而且，它在第三季度繼續充當流量驅動因素，其中返校、媒體、糖果和房間是我們表現較好的類別之一。

Once again, our comp was driven primarily by increased transactions. This strong sales performance drove expense leverage and resulted in us delivering adjusted operating income of more than triple that of Q3 last year, and adjusted EPS of $0.03 as compared to $0.01 last year. On a year-to-date basis, our comps came in at 9.2%, sales growth was 43%, adjusted operating income growth was 109%, and adjusted net income growth was 52.6%.

我們的業績再次主要由交易量增加所推動。這種強勁的銷售業績推動了費用槓桿，使我們的調整後營業收入比去年第三季增長了三倍多，調整後每股收益為 0.03 美元，而去年為 0.01 美元。年初至今，我們的綜合成長率為 9.2%，銷售成長率為 43%，調整後營業收入成長率為 109%，調整後淨利潤成長率為 52.6%。

The strength and consistency of our results are a testament to the broader appeal of the Five Below concept. Our consistent positive comps since 2006 spans both good and tough economic times and our performance through this time speaks for itself. As we execute on our store growth plans, in order to support this growth we are, at the same time, investing in our infrastructure.

我們結果的強度和一致性證明了「以下五項」概念具有更廣泛的吸引力。自 2006 年以來，無論是經濟景氣或經濟困難時期，我們始終保持積極的業績表現，這段時間我們的表現不言而喻。當我們執行商店成長計劃時，為了支持這種成長，我們同時投資於我們的基礎設施。

As you saw in the press release we issued a few weeks ago, we have signed a lease for a new facility, 600,000 square foot distribution center, in Olive Branch, Mississippi, which is right outside Memphis, Tennessee. We expect to take possession of this DC in January 2013, plan to move in the facility in spring of 2013, and expect it to be fully operational in the second quarter of 2013. We anticipate this new facility, combined with our existing New Castle, Delaware DC will support approximately 600 stores.

正如您在我們幾週前發布的新聞稿中看到的那樣，我們已經在密西西比州奧利夫布蘭奇（田納西州孟菲斯市郊外）簽署了新設施的租約，即 600,000 平方英尺的配送中心。我們預計於 2013 年 1 月接管該資料中心，並計劃於 2013 年春季搬入該設施，並預計於 2013 年第二季全面投入營運。拉華特區將支援約600 家商店。

In summary, we are proud of the results we delivered for the third quarter. Strong top-line performance, combined with consistent product margins and disciplined expense management that is characteristic of our model, helped drive the above plan bottom-line results. While the fourth quarter got off to a difficult start, the important shopping days lie ahead of us.

總之，我們對第三季的業績感到自豪。強勁的營收業績，加上穩定的產品利潤率和嚴格的費用管理（這是我們模式的特點），有助於推動上述計畫的獲利結果。儘管第四季開局艱難，但重要的購物日就在前方。

We are well-positioned for the holiday with compelling product offerings. And, our merchandise flow and supply our back to normal following some disruption during and right after the storm. Our appeal as a holiday shopping destination is strong as we offer customers excitement and affordability with a wide assortment of trend right merchandise at extremely compelling price points.

我們已為假期做好準備，提供引人注目的產品。而且，在風暴期間和風暴結束後出現一些中斷後，我們的商品流通和供應恢復正常。我們作為假日購物目的地的吸引力非常強大，因為我們以極具吸引力的價格為客戶提供各種潮流商品，讓他們既興奮又實惠。

With that, I will now turn the call over to Ken, our CFO, to go over financial results in more detail.

現在，我將把電話轉給我們的財務長 Ken，以更詳細地討論財務表現。

Thanks, Tom, and good afternoon everyone.

謝謝湯姆，大家下午好。

I will begin my remarks with a review of our third quarter and year-to-date results and then discuss our outlook for fiscal 2012. We increased our sales in the third quarter by 39.9% to $86.6 million from the $61.9 million reported in the third quarter of last year. We ended the quarter with 243 stores an increase of 54 stores, or 28.6%, versus the 189 stores we had as of the end of the third quarter of 2011.

我將首先回顧我們第三季和年初至今的業績，然後討論我們對 2012 財年的展望。去年第四季。截至本季末，我們的門市數量為 243 家，與 2011 年第三季末的 189 家門市相比，增加了 54 家門市，增幅為 28.6%。

We have opened 51 new stores so far this year. And, with the one new store that opened in November, we will end the year with 244 stores in 18 states. As Tom mentioned, we continue to be pleased with the performance of our new stores. And, as a reminder, our new store model calls for average year one sales of $1.5 billion to $1.6 million at an average payback period of less than one year.

今年到目前為止，我們已經開設了 51 家新店。隨著 11 月新店開業，到年底我們將在 18 個州擁有 244 家商店。正如湯姆所提到的，我們仍然對新店的業績感到滿意。提醒一下，我們的新店模式要求第一年平均銷售額達到 15 億至 160 萬美元，平均投資回收期不到一年。

Comparable store sales for the quarter increased by 8.8% versus the 7.6% increase in the third quarter of last year. This comp increase was driven by an 8.2% increase in the number of transactions. Gross profit increased 46.6% in the quarter to $26.9 million from the $18.4 million reported in the third quarter of 2011. Gross margin increased by 142 basis points to 31.1% from the 29.7% reported in the year ago period. The increase in gross margin was driven by the leveraging of the six components of non-merchandise cost of goods sold including store occupancy, buying, and distribution expense.

本季可比商店銷售額成長 8.8%，而去年第三季則成長 7.6%。這一增幅是由交易數量增加 8.2% 所推動的。本季毛利從 2011 年第三季報告的 1,840 萬美元成長 46.6%，達到 2,690 萬美元。毛利率的成長是透過利用非商品銷售成本的六個組成部分（包括商店佔用、購買和分銷費用）來推動的。

SG&A expense of $25.1 million increased 42.3% from the $17.6 million reported in the third quarter of fiscal 2011. As a percentage of sales, SG&A increased to 29% from 28.5%. Excluding the $1.5 million in costs associated with the founders' transaction that were recorded in the third quarter of 2012, and $200,000 in the third quarter of 2011, adjusted SG&A in the third quarter of 2012 was $23.6 million, or 27.2% of sales, as compared to $17.5 million, or 28.2% of sales, in the third quarter of last year. The decline in year-over-year adjusted SG&A as a percent of sales was driven primarily of the timing of new store opening expenses as we opened 17 new stores in Q3 2012, as compared to 21 openings in the third quarter of 2011.

SG&A 費用為 2,510 萬美元，比 2011 財年第三季報告的 1,760 萬美元增加了 42.3%。不包括2012 年第三季記錄的與創辦人交易相關的150 萬美元成本和2011 年第三季的20 萬美元，2012 年第三季調整後的SG&A 為2,360 萬美元，佔銷售額的27.2% ，如下所示：相較之下，去年第三季的銷售額為 1,750 萬美元，佔銷售額的 28.2%。調整後的銷售及管理費用佔銷售額的百分比同比下降主要是由於新店開業費用的時間安排造成的，因為我們在2012 年第三季度開設了17 家新店，而2011 年第三季度則開設了21家新店。

Our GAAP operating income was $1.8 million. Excluding the $1.5 million and $200,000 in costs associated with the founders' transaction in 2012 and 2011 respectively, adjusted operating income for the third quarter of 2012 was $3.4 million which was more than three times last year's adjusted operating income of $900,000.

我們的 GAAP 營業收入為 180 萬美元。不計2012年和2011年與創辦人交易相關的分別為150萬美元和20萬美元的成本，2012年第三季調整後營業收入為340萬美元，是去年調整後營業收入90萬美元的三倍多。

As a percentage of sales, adjusted operating margin improved to 3.9% compared to 1.5% for the same period last year. The increase in adjusted operating margin was driven primarily by leveraging of the fixed components of cost of goods sold and SG&A expenses on the sales increase.

調整後營業利潤率佔銷售額的百分比從去年同期的 1.5% 提高至 3.9%。調整後營業利潤率的成長主要是透過利用銷售成本的固定部分和銷售額成長的銷售管理及行政費用來推動的。

Our net interest expense in the third quarter of 2012 was $600,000 compared to $6,000 in the third quarter of 2011. The increase in net interest expense was the result of the $100 million term loan entered into on the second quarter of fiscal 2012 of which $65.5 million was paid down subsequent to the completion of our IPO on July 24. Assuming we do not make any incremental principal payments on our term loan, we expect interest expense to be approximately $500,000 in the fourth quarter.

2012 年第三季我們的淨利息支出為600,000 美元，而2011 年第三季為6,000 美元。美元7 月 24 日 IPO 完成後已付清。

Our effective tax rate for the quarter was 43.2% compared to 40% in the third quarter of 2011. The increase in our effective tax rate was the result of discrete items related to changes in the state apportionment factors that occurred within the third quarter. We anticipate our effective tax rate for the fourth quarter to be approximately 40%.

本季的有效稅率為 43.2%，而 2011 年第三季為 40%。我們預計第四季的有效稅率約為 40%。

Before I discuss net income, I want to point out that for both the quarter and year-to-date period, I will be referring to adjusted net income in both periods that exclude the impact of the founders' transaction. When I refer to EPS, it is EPS based on adjusted net income using an adjusted diluted weighted average shares calculation for the quarter.

在討論淨利潤之前，我想指出，對於本季和年初至今，我將指的是這兩個時期的調整後淨利潤，不包括創辦人交易的影響。當我提到每股盈餘時，它是基於調整後的淨利潤，使用本季調整後的稀釋加權平均股票計算得出的每股盈餘。

The adjusted diluted weighted average shares outstanding assumes the IPO transaction took place at the beginning of each respective period, thus eliminating the lack of comparability due to the IPO taking place towards the end of the second quarter of 2012. A reconciliation of GAAP net income and net income per share to these adjusted numbers on an adjusted weighted share basis can be found in the financial tables included in our earnings press release issued today.

調整後稀釋後發行在外加權平均股數假定 IPO 交易發生在各期初，從而消除了由於 IPO 發生在 2012 年第二季度末而導致的缺乏可比性。的加權股票基礎上的數字可以在我們今天發布的收益新聞稿中包含的財務表格中找到。

As a result of the factors I just described, adjusted net income for the quarter was $1.6 million, or $0.03 per share, based on 54.4 million adjusted diluted weighted average shares outstanding, as compared to $600,000, or $0.01 per share, based on 51.8 million adjusted diluted weighted average shares outstanding in the third quarter of last year. This represents a 189% increase in adjusted net income over the third quarter of 2011.

由於我剛才描述的因素，本季調整後淨利潤為160 萬美元，即每股0.03 美元，基於5,440 萬股調整後稀釋加權平均流通股，而基於5,180 萬股，調整後淨利潤為600,000 美元，即每股0.01 美元去年第三季調整後稀釋後流通在外加權平均股數。這意味著調整後淨利潤比 2011 年第三季成長了 189%。

Looking at things from a year-to-date perspective, for the first nine months of fiscal 2012 net sales increased by 43.2% to $245.2 million. We opened 51 new stores and comparable sales increased 9.2% as compared to a 5.1% comp increase in the first nine months of fiscal 2011. GAAP operating income was $4.6 million.

從年初至今的角度來看，2012 財年前九個月的淨銷售額成長了 43.2%，達到 2.452 億美元。我們開設了 51 家新店，可比銷售額增長了 9.2%，而 2011 財年前 9 個月的可比銷售額增長了 5.1%。

Excluding the impact of the founders' transaction, adjusted operating income increased by 109% to $13.9 million and operating margin increased 180 basis points to 5.7% from 3.9% from the first nine months of last year. As a result of these year-to-date factors, adjusted net income increased by 52.6% to $6.1 million, or $0.11 per share, based on 54.1 million adjusted diluted weighted average shares outstanding. That's versus $4 million, or $0.08 per share, based on 51.8 million adjusted diluted weighted average shares outstanding in the corresponding period in fiscal 2011.

排除創辦人交易的影響，調整後的營業收入成長了 109%，達到 1,390 萬美元，營業利潤率從去年前 9 個月的 3.9% 增長了 180 個基點，達到 5.7%。由於這些年初至今的因素，調整後淨利潤增長了 52.6%，達到 610 萬美元，即每股 0.11 美元（基於 5,410 萬股調整後稀釋加權平均流通股）。相較之下，根據 2011 財年同期 5,180 萬股調整後稀釋加權平均流通股計算，這一數字為 400 萬美元，即每股 0.08 美元。

We ended the third quarter of fiscal 2012 with $7.2 million in cash and cash equivalents on our balance sheet, $34.5 million in outstanding term loan borrowings, and full availability under our $20 million revolver facility. Inventory was $84.4 million at quarter end as compared to $57.6 billion in ending inventory in the third quarter of 2011. The increase was driven by inventory for our 54 new stores, increased holiday opportunistic buys, and the timing of our initial holiday merchandise sets. Average in-store inventory increased 6% as compared to last year.

截至 2012 財年第三季度，我們的資產負債表上有 720 萬美元的現金和現金等價物，未償還的定期貸款借款為 3,450 萬美元，並且我們的 2,000 萬美元的循環貸款額度完全可用。季末庫存為8,440 萬美元，而2011 年第三季期末庫存為576 億美元。 。店內平均庫存較去年增加6%。

Now, I would like to turn to our outlook. As Tom mentioned, the effects of Hurricane Sandy led to a difficult start to November given approximately 50% of our stores operate in regions that were directly affected by the storm. Our guidance for fiscal Q4 takes into consideration the early November performance in the hurricane impacted areas. We have also factored into our fourth quarter earnings guidance an assumed impact from the supply disruptions that took place during and after the storm, as well as initial costs associated with our new distribution center. Both of which are costs we did not have last year. Against that backdrop, for the fourth quarter ending February 2, 2013, net sales are expected to be between $167 million and $170 million, assuming a 4% comparable store sales increase and the opening of one new store.

現在，我想談談我們的展望。正如 Tom 所提到的，由於我們大約 50% 的商店位於直接受風暴影響的地區，因此桑迪颶風的影響導致 11 月開局困難。我們對第四財季的指導考慮了受颶風影響地區 11 月初的表現。我們也在第四季度的獲利指引中考慮了風暴期間和之後發生的供應中斷的假設影響，以及與我們的新配送中心相關的初始成本。這兩項費用都是我們去年沒有的。在此背景下，假設可比商店銷售額增長 4% 並開設一家新店，截至 2013 年 2 月 2 日的第四季度淨銷售額預計將在 1.67 億美元至 1.7 億美元之間。

GAAP net income is expected to be in the range of $18 million to $19 million, or a GAAP diluted income per share range of $0.34 to $0.36, based on approximately 53 million adjusted weighted average shares outstanding for the fourth quarter. On an estimated adjusted basis, excluding $900,000, or $0.02 per adjusted diluted share, and tax affected expenses related to the founders' transaction, adjusted net income is expected to be in the range of $19 million to $20 million, or $0.35 to $0.37 per diluted share based on estimated adjusted diluted weighted average common shares outstanding of approximately 54.4 million.

基於第四季度約 5,300 萬股調整後加權平均流通股，預計 GAAP 淨利潤將在 1,800 萬至 1,900 萬美元之間，或 GAAP 稀釋後每股收益將在 0.34 至 0.36 美元之間。根據估計調整後的基礎，不包括90 萬美元，或調整後攤薄每股0.02 美元，以及與創始人交易相關的受稅收影響的費用，調整後淨利潤預計在1900 萬美元至2000 萬美元之間，或每股攤薄0.35 至0.37 美元股份基於估計調整後稀釋加權平均已發行普通股約 5,440 萬股。

For the full fiscal year 2012, sales are expected to be in the range of $412 million to $415 million with a comparable store sales increase of 7%. We will end the year with 244 stores for a total increase in 2012 of 52 new stores. This compares to 50 net new stores opened last year for a 2011 ending store count of 192.

2012 財年，銷售額預計在 4.12 億至 4.15 億美元之間，可比商店銷售額成長 7%。到年底，我們將開設 244 家門市，2012 年新店總數將增加 52 家。相較之下，去年淨新開店 50 家，2011 年末店舖數量為 192 家。

Our sales outlook for 2012 compares to net sales of $297 million for fiscal 2011, representing a growth rate range of 39% to 40%. GAAP net income is expected to be in the range of $19 million to $20 million with a GAAP diluted loss per common share of $1.28 to $1.31, which includes the impact of $65.4 million of dividends paid to preferred and unvested restricted shareholders on approximately 35.4 million estimated weighted average common shares outstanding.

我們對 2012 年的銷售展望與 2011 財年的淨銷售額 2.97 億美元相比，成長率為 39% 至 40%。 GAAP 淨利潤預計在 1,900 萬至 2,000 萬美元之間，每股普通股攤薄虧損為 1,900 萬至 2,000 萬美元之間，每股普通股攤薄虧損為 1,900 萬至 2,000 萬美元之間，每股普通股攤薄虧損為 1.28 至 1.31 美元，其中包括向優先股和未歸屬限制股東支付的 6,540 萬美元股息對約 3,540 萬名股東的影響加權平均已發行普通股。

On an adjusted basis, excluding $6.5 million, or $0.12 per adjusted diluted share, and tax affected expenses related to the founders' transaction, adjusted net income is expected to be in the range of $26 million to $27 million, or $0.47 to $0.49 per diluted share based on estimated adjusted diluted weighted average common shares outstanding of approximate 54.3 million. This represents a growth rate range for adjusted net income of 27% to 32% over last year.

在調整後的基礎上，不包括650 萬美元，或調整後攤薄每股0.12 美元，以及與創始人交易相關的受稅收影響的費用，調整後淨利潤預計在2600 萬美元至2700 萬美元之間，或每股攤薄0.47 至0.49 美元股份基於估計調整後稀釋加權平均已發行普通股約 5430 萬股。這意味著調整後淨利潤較去年增長 27% 至 32%。

Net income guidance for fiscal 2012 includes $10.8 million in pretax stock compensation expense, or $6.5 million on a tax effective basis related to the founders' transaction. Of the $10.8 million, $1.5 million will be recognized in SG&A expense in the fourth quarter. In fiscal 2012, we also have all of the incremental costs including additional payroll and professional fees associated with being a Public Company representing roughly $1.5 million, with approximately $600,000 of this expected to be recognized in the fourth quarter of fiscal 2012 that we did not have at all in fiscal 2011. Additionally, we expect to incur approximately $23 million of capital expenditures for fiscal 2012.

2012 財年的淨利指引包括 1,080 萬美元的稅前股票補償費用，或以與創辦人交易相關的稅收有效基礎計算的 650 萬美元。在這 1,080 萬美元中，150 萬美元將在第四季度的 SG&A 費用中確認。在2012 財年，我們還有所有增量成本，包括與成為上市公司相關的額外工資和專業費用，約為150 萬美元，其中約60 萬美元預計將在2012 財年第四季度得到確認，而我們並沒有這樣做。

With that, I would like to turn the call back over to Tom to provide some closing comments before we open it up for questions.

至此，我想將電話轉回給湯姆，在我們開始提問之前提供一些結束語。

Thank you, Ken.

謝謝你，肯。

To wrap it up, David and I are proud of the job the entire Five Below team has done to deliver another great quarter with strong top and bottom line result. We've opened 52 stores this year, I'm very pleased with the performance of these openings and are at work planning and signing leases for the class of 2013. Events outside of our control led to a very difficult start in Q4. But, important holiday shopping weeks lie ahead.

總而言之，大衛和我對整個「五以下」團隊所做的工作感到自豪，他們為實現又一個偉大的季度提供了強勁的營收和利潤結果。今年我們新開了 52 家店，我對這些新店的表現非常滿意，並且正在為 2013 屆畢業生進行規劃和簽署租約。但是，重要的假日購物週即將到來。

We believe we are well-positioned to execute during this key selling period. We believe our merchandise assortments and value price points are resonating with our customers as much as they ever have. And, the performance of our new stores, as we built out our presence in new and existing markets, continues to illustrate the universal appeal of the Five Below concept.

我們相信，我們處於有利地位，可以在這個關鍵銷售時期執行。我們相信，我們的商品種類和物有所值的價格點正在與我們的客戶產生前所未有的共鳴。而且，隨著我們在新市場和現有市場中建立業務，我們新店的表現繼續說明了「五以下」概念的普遍吸引力。

It's so rewarding to read the numerous e-mails that flow in from folks who ask us to open a store in their home towns and others who even do enough homework to actually identify potential locations for Five Below stores. Thank you for your enthusiastic support. I hope that all of you will be shopping our stores this holiday season. And, I am confident you and your children will be delighted with the merchandise offering and, of course, the extremely affordable price points.

閱讀大量電子郵件是非常有意義的，這些電子郵件來自那些要求我們在他們的家鄉開設商店的人，以及其他人甚至做了足夠的功課來實際確定“五以下”商店的潛在位置的人。感謝您的熱情支持。我希望大家在這個假期期間到我們的商店購物。而且，我相信您和您的孩子會對我們提供的商品以及極其實惠的價格感到滿意。

On behalf of my partner David, who is actually out in the field today touring stores but I believe is listening, Ken, myself, and the entire Five Below team, we wish you a happy holiday season and look forward to speaking with you next quarter. With that, I would like now to turn the call over to the operator and begin the Q&A session.

我代表我的合作夥伴David（他今天實際上在現場參觀商店，但我相信他正在傾聽）、Ken、我本人以及整個“五以下”團隊，我們祝您節日快樂，並期待下個季度與您交談。現在，我想將通話轉給接線員並開始問答環節。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Charles Grom, Deutsche Bank.

查爾斯‧格羅姆，德意志銀行。

Just wondering, on the fourth quarter guidance for your 4% comp, can you speak to the building blocks behind that assumption for us?

只是想知道，關於您 4% 的第四季度指導，您能否為我們談談該假設背後的基礎？

Well, Chuck, we -- it was similar, as you know, to the guidance we provided back on our Q2 call. And, again we remained within that range. We had, obviously, considerations to go through to come up with that guidance including the Hurricane Sandy events. But, we feel that that's the appropriate guidance at this point.

嗯，查克，正如你所知，這與我們在第二季度電話會議中提供的指導類似。而且，我們再次保持在這個範圍內。顯然，我們需要考慮制定該指導意見，包括颶風桑迪事件。但是，我們認為這是目前適當的指導。

And, how long was the hangover affect from Sandy? We obviously heard from a lot of the monthly reporters today. And, some guys said it was a week, some guy said it was all month. Just curious how long the hangover affect beyond the stores that you had closed were?

還有，桑迪的宿醉影響持續多久了？今天我們顯然聽到了很多月刊記者的來信。而且，有些人說這是一個星期，有些人說這是整個月。只是好奇宿醉影響除了您關閉的商店之外還有多長時間？

Yes, I think we'll try to hit it and try and move on. I think, as Ken mentioned, just earlier on, as we look at the impact the storm had in November on our results, looked at what we believe to be our outlook for December and we came up with the guidance of 4%. With regards to the effect, as we mentioned, particularly the first half of the month there was an impact by the storm given the concentration of stores, shops that we have in the corridor. Without getting into specifics of individual stores and individual days, the impact varied. It varied from almost 50% of our stores being completed shut down to stores continuing to close the day after the storm as well as the distractions that the consumer had. So, I know it is important to everyone. But, I can tell you that what we've done is we've looked at the impact that the storm has had on November for us and how we fared as we've gone into the end of the month. And, where we think December is going to come in and we came up with the guidance of 4% that we feel good with.

是的，我想我們會努力實現目標並繼續前進。我認為，正如肯早些時候提到的，當我們研究 11 月份風暴對我們業績的影響時，我們也考慮了 12 月份的前景，我們得出了 4% 的指導。至於影響，正如我們所提到的，特別是在這個月的上半個月，考慮到走廊上商店的集中度，風暴造成了影響。在不考慮個別商店和個別日子的具體情況的情況下，影響各不相同。從近 50% 的商店完全關閉到風暴過後第二天商店繼續關閉，以及消費者受到的干擾，情況各不相同。所以，我知道這對每個人都很重要。但是，我可以告訴您，我們所做的是研究了 11 月風暴對我們造成的影響，以及進入月底時我們的表現。而且，我們認為 12 月即將到來，我們提出了 4% 的指導，我們對此感到滿意。

Okay, great. Fair enough. Just to move on into the third quarter, the 8.2% traffic increase clearly one of the best in retail, probably, at least in my coverage group. I'm wondering if you guys have spent any time digging into that to see how much of that is new customers coming into your stores versus repeat customers coming in your stores? And, if you have, how has that changed as you guys have grown the company?

好的，太好了。很公平。進入第三季度，8.2% 的流量成長顯然是零售業最好的成長之一，至少在我的覆蓋範圍內是如此。我想知道你們是否花時間深入研究過這個問題，看看有多少新顧客進入你們的商店，而有多少回頭客進入你們的商店？如果有的話，隨著你們公司的發展，情況發生了怎樣的變化？

Its a great question. I think -- I know all of us always ask the question as to how do we get more data on it. And, the best conclusion that I think we've been able to come up, while we don't have any raw specific data to point to how and why. The best way we look at the results is as follows. I think we mentioned early on, I think it was in my script, was that we continue to see consistent performance, comp performance, across all regions but also all vintages. Our earlier stores continue to comp. That tells us that our customers are shopping our stores more frequently, they come back often. So, I think the -- what we're seeing in the transaction count and the traffic leads us to believe that our customer comes in, visits our store and has found many ways to shop the store, and is confident coming back over and over again.

這是一個很好的問題。我想——我知道我們所有人總是問這樣的問題：我們如何獲得更多相關數據。而且，我認為我們已經能夠得出最好的結論，儘管我們沒有任何原始的具體數據來指出如何以及為什麼。我們查看結果的最佳方式如下。我想我們很早就提到過，我認為這是在我的劇本中，我們繼續看到所有地區以及所有年份的一致表現和比較表現。我們早期的商店繼續競爭。這告訴我們，我們的顧客更頻繁地在我們的商店購物，他們經常回來。因此，我認為，我們在交易數量和流量中看到的情況讓我們相信，我們的客戶進來，參觀了我們的商店，並找到了多種在商店購物的方式，並且有信心一次又一次地回來再次。

Okay, great. And, my last question for Ken, just on guidance. I think your guidance more or less implies operating margins flattish year-over-year, I think. And, year-to-date your obviously doing much better than that. But, your comparison is a lot easier from the fourth quarter a year ago. So, I'm just trying to connect the dots on to why we wouldn't see a little bit better margin expansion then say flattish?

好的，太好了。我要問肯的最後一個問題是關於指導。我認為你的指導或多或少意味著營業利潤率與同比持平。而且，今年迄今為止，您的表現顯然比這要好得多。但是，與去年第四季度相比，您的比較要容易得多。所以，我只是想把這些點連起來，解釋為什麼我們看不到更好的利潤擴張，然後說持平？

I think we've mentioned before, especially on a 4% comp, we don't really see any meaningful improvement in leveraging on the fixed components of our cost, whether they be in cost of goods sold or in SG&A. And then, of course, we've got the public company costs in there in the fourth quarter that we didn't have last year, too, that we're up against that I spoke to.

我想我們之前已經提到過，特別是在 4% 的比較中，我們在利用成本的固定部分方面並沒有真正看到任何有意義的改進，無論是銷售商品成本還是 SG&A。當然，我們在第四季也有上市公司的成本，這是我們去年沒有的，我們也面臨我談到的問題。

Okay. And, just one last one, if I could. Would you want to quantify the DC costs for us in the fourth quarter?

好的。如果可以的話，就最後一張吧。您想量化我們第四季的 DC 成本嗎？

Yes, that again, is -- we talked about the DC coming on in the spring of 2013. We will incur some initial ramp-up costs in Q4 that we did not have in Q4 last year. That's about in the 10 to 20 basis point range.

是的，這又是——我們談到了 2013 年春季推出的 DC。大約在 10 到 20 個基點範圍內。

10 to 20 basis points. Okay great. Good luck, and great quarter. Thanks.

10至20個基點。好的，太好了。祝你好運，季度愉快。謝謝。

Daniel Binder, Jefferies & Co.

丹尼爾賓德，傑富瑞公司

Hi, good morning -- good afternoon, I should say. I was wondering if you can comment, in the latter part of the month I realize that the front half was tough with the storms. I was curious how you were feeling about the Thanksgiving Day weekend? I realize that's current quarter, but any color you can give us on that?

嗨，早安——我應該說下午好。我想知道你是否可以發表評論，在這個月的後半段，我意識到前半段的風暴很艱難。我很好奇你對感恩節週末有什麼感覺？我知道那是當前季度的情況，但是您能給我們什麼資訊嗎？

Again, I think as we mentioned, we saw an impact to our business early in the month as a result of the storm. And, there was some impact even following the storm (inaudible) While Black Friday, obviously, for us is a good day, but it's not as important a day or week as it is for a lot of the other large retailers. We did see as we finished up the last week of November, certainly, the trend improved versus where we were the early part of November.

同樣，我認為正如我們所提到的，本月初我們看到風暴對我們的業務產生了影響。而且，即使在風暴過後也產生了一些影響（聽不清楚）雖然黑色星期五對我們來說顯然是美好的一天，但對於許多其他大型零售商來說，它並不像一天或一周那麼重要。當 11 月最後一周結束時，我們確實看到，與 11 月初相比，趨勢確實有所改善。

But, again, I just want to reiterate what we've done, particularly with November now being over, we've looked at the back of the storm, we've looked at November, put December into it, and adjusted our guidance accordingly. And reflected that in the 4% for the quarter. And, I know we typically don't like to talk about individual months, but given the severity of the storm, we want to at least put out the fact that there was an impact to our sales in the early part of November.

但是，我只想重申我們所做的事情，特別是 11 月已經結束，我們已經研究了風暴的背後，我們已經研究了 11 月，將 12 月納入其中，並相應地調整了我們的指導。並反映在該季度的 4% 中。而且，我知道我們通常不喜歡談論個別月份，但考慮到風暴的嚴重性，我們至少想指出這樣一個事實：11 月初我們的銷售受到了影響。

Sure, sure. In regards to your comments about next year's expansion of 60 stores, I think that's very much aligned with what you were saying previously. I'm curious, do you think there's any upside potential to that? And, can you share with us which new markets you plan to go into?

一定一定。關於您關於明年擴張60家商店的評論，我認為這與您之前所說的非常吻合。我很好奇，你認為這有什麼上升潛力嗎？另外，您能與我們分享您計劃進入哪些新市場嗎？

Well we won't speak to the specific markets. I think what we can say is the type of stores that we're going to open and whether they are in new markets or existing markets should be consistent with what we've seen in prior years. Where we tend to open about 50% of -- greater than 50% of the stores in existing markets and less than 50% in new markets.

好吧，我們不會談論特定市場。我認為我們可以說的是我們要開的商店類型以及它們是在新市場還是現有市場應該與我們前幾年所看到的保持一致。我們傾向於在現有市場開設約 50% 的商店（超過 50%），在新市場開設少於 50% 的商店。

As we look at our top-line growth, square footage growth, and our bottom-line growth we believe the 60 store count that we have more than is sufficient to accomplish our goals. So, at this time, 60 is our number.

當我們審視我們的營收成長、面積成長和利潤成長時，我們相信我們擁有的 60 家商店數量足以實現我們的目標。所以，這個時候，60就是我們的數字。

And then, finally, on the expense performance in the quarter, I mean even after factoring in the higher comp and the lower store count year-over-year, which we had done in our model, it seemed like the expense leverage was still pretty extraordinary. So, congratulations. I'm just curious is there any other shifts in expenses into Q4 out of Q3 that were unplanned?

最後，關於本季的費用表現，我的意思是，即使考慮到我們在模型中所做的同比較高的比較和較低的商店數量，費用槓桿似乎仍然相當大非凡的。那麼，恭喜你。我只是好奇是否有其他計劃外的費用從第三季轉移到第四季？

Again, as I mentioned for Q3, we had the six components leveraging in cost of goods sold and in SG&A. And, we saw it -- in cost of goods sold we saw it in occupancy, primarily, and in distribution and buying. And then, we did see the climbing of pre-opening expenses in SG&A in Q3. As we go into Q4, again with that 4% comp, we're not going to be looking to see any significant or meaningful leverage on the SG&A side. And then, I think we discussed a couple things there relative to cost of goods sold, the ramp-up of the new distribution center, and those 10 to 20 basis points. And then, to the extent we've estimated any impact on gross margins related to supply chain disruptions, that could be even a little bit higher than that that will be built into the guidance that we've provided.

同樣，正如我在第三季度提到的，我們在銷售商品成本和銷售管理費用方面利用了六個組成部分。而且，我們在銷售商品成本中看到了這一點，主要是在入住率以及分銷和購買方面。然後，我們確實看到第三季銷售、管理和行政費用的開業前費用攀升。當我們進入第四季度時，再次採用 4% 的補償，我們不會看到 SG&A 方面有任何重大或有意義的槓桿作用。然後，我認為我們討論了與銷售商品成本、新配送中心的成長以及這 10 到 20 個基點相關的一些事情。然後，就我們估計的與供應鏈中斷相關的毛利率的影響而言，這甚至可能比我們提供的指導中的影響稍高。

Great, thanks.

萬分感謝。

John Heinbockel, Guggenheim Securities.

約翰·海因博克爾，古根漢證券公司。

Hi, Tom and Ken. Two broad questions. One, to Tom, when you look at the across the box and you think about categories that you might be under represented in, where are they? Do they exist? And, how do you think you attack that, say, over the next year or so?

嗨，湯姆和肯。兩個廣泛的問題。第一，湯姆，當你環顧四周並思考你可能代表性不足的類別時，它們在哪裡？它們存在嗎？而且，你認為在接下來的一年左右的時間內你會如何應對這個問題？

In fact, that's a good question. It's such a big, broad, and all-encompassing question that we would probably would need to have a much longer discussion, conversation at some point. That being said, one of the advantages that I think Five Below has, when you look at those eight category worlds that we have, the level of flexibility that we have to flex within each of those worlds and to add, delete, ship, thrust, downplay, whatever, I think is so important. And, so opportunistic for us that I think it has served us well to this day and will continue to do so. And, I am not trying to evade the question, I think I'll give you one example that may be able to resonate. I remember just a couple years ago the importance of DVDs in a business. It was a very big business, it was a hot business. And then, we've seen that business today really shift almost to a business that is almost of very little importance to us. But, again, we've seen other categories like electronic accessories, for example, really become a bigger part of our sales mix. So, within the worlds we've seen, and continue to see, category expansions and contractions. And, I think we have plenty of opportunities to keep us going for the foreseeable future.

事實上，這是個好問題。這是一個如此重大、廣泛和包羅萬象的問題，我們可能需要在某個時候進行更長的討論和對話。話雖這麼說，我認為《五下》的優點之一是，當你看到我們擁有的這八個類別世界時，我們必須在每個世界中靈活運用以及添加、刪除、運輸、推力的靈活性水平，淡化，無論如何，我認為非常重要。而且，這對我們來說是如此機會主義，以至於我認為它對我們至今很有幫助，並將繼續如此。而且，我並不是想迴避這個問題，我想我會給你一個可能引起共鳴的例子。我記得幾年前 DVD 在商業上的重要性。這是一項非常大的生意，也是一門熱門的生意。然後，我們看到今天的業務實際上幾乎轉變為對我們來說幾乎不那麼重要的業務。但是，我們再次看到其他類別，例如電子配件，確實成為我們銷售組合的重要組成部分。因此，在我們已經看到並將繼續看到的世界中，品類擴張和收縮。而且，我認為在可預見的未來，我們有很多機會讓我們繼續前進。

Just as a follow-up to that, you guys -- to what degree are you doing re-planograms during the course of the year? Obviously, the mix changes seasonally. But, beyond that, how often would each of the worlds be re-planogramed and then space reallocated?

作為後續行動，你們在這一年中在多大程度上重新進行了貨架圖？顯然，這種組合會隨著季節的變化而改變。但是，除此之外，每個世界多久會被重新規劃一次，然後重新分配空間？

I think it's fair to say that at least twice a year we refresh and readjust every world at the very least. And, obviously seasons, and seasonal sets, within both the now section and the category worlds is in addition to that. So, while -- because part of what we do, what makes Five Below what it is is the ability to create newness, to create excitement, to reinvigorate the mix of thousands of items that we have. And, in order to do that we have to continue to obviously flush the categories. So, we touch at a minimum a couple times of year. And, again, all these sets as we do for seasons is all on incremental to that.

我認為可以公平地說，我們每年至少刷新和重新調整每個世界兩次。而且，顯然，現在部分和類別世界中的季節和季節系列也是除此之外的。所以，同時，因為我們所做的一部分，「五以下」之所以成為這樣，是因為我們有能力創造新事物、創造興奮、重振我們擁有的數千種產品的組合。而且，為了做到這一點，我們必須繼續明顯地刷新類別。所以，我們每年至少接觸幾次。再說一遍，我們為賽季所做的所有這些設定都是在此基礎上遞增的。

All right. And, the last question is -- I know you don't want to talk about the exact new markets, but what is the thought process you go through in terms of what are the most attractive markets? What are the criteria or qualities they have and how do you prioritize in terms of we want to do this market before that one or another one?

好的。最後一個問題是——我知道您不想談論確切的新市場，但是您在確定最具吸引力的市場時經歷了什麼思考過程？他們有哪些標準或品質？

I think I've -- we've said before, as David and I have said in the past, our expansion ideally needs to be contiguous. So, we don't really like to jump from A to B. I don't think there are any immediate plans for us to be going over and jumping to the other side of the tree. It's good for the model, it allows us, by going after continuous expansion growth strategy, it allows us to put stores within reach, it allows us to leverage resources from management, able to (inaudible) culture, distribution expense, and so on and so forth. So, while I can't announce new markets today, we probably will be fairly shortly. But, I think if you look at markets, what we like to do is look for opportunities that could have a fairly decent level of yield from a new store standpoint of view.

我想我——我們之前說過，正如大衛和我過去所說的那樣，我們的擴張理想情況下需要是連續的。所以，我們真的不喜歡從 A 跳到 B。這對模型有好處，它允許我們透過追求持續擴張的成長策略，它允許我們將商店放在觸手可及的地方，它允許我們利用管理層的資源，能夠（聽不清楚）文化，分銷費用等等，等等。因此，雖然我今天無法宣布新市場，但我們可能很快就會宣布。但是，我認為，如果你看看市場，我們喜歡做的就是尋找從新店角度來看可以獲得相當不錯的收益率的機會。

So, while we're not ready to announce markets today I think you can see some of the obvious where we are probably looking at today to expand. When you look at where distribution -- the next DC is and where the next big markets will wind up being. Again, we'll probably will be announcing a new market in the foreseeable -- the near future.

因此，雖然我們今天還沒有準備好宣布市場，但我認為您可以看到我們今天可能正在尋求擴張的一些明顯的市場。當你觀察分銷管道時，下一個 DC 會在哪裡，下一個大市場最終會在哪裡。同樣，我們可能會在可預見的時間內（不久的將來）宣布一個新市場。

Okay. Thanks, guys.

好的。多謝你們。

And, ladies and gentlemen, in order to give everyone an opportunity to ask a question today, we do please ask you limit yourself to one question. Michael Lasser, UBS.

女士們、先生們，為了讓今天每個人都有機會提問，我們懇請你們限制提問一個問題。麥可拉瑟，瑞銀集團。

Thanks a lot for taking my question and good evening. The operating margin for this year, if you adjust for some of the moving parts in the fourth quarter, seems to be on pace to be pushing up against that 12% target that you've talked about over the long-term. So, philosophically, as you move past this year, how are you thinking about managing the business? Will you look to invest a little more aggressively in some of your products or should we expect to see you move past that 12% target? Thanks.

非常感謝您提出我的問題，晚上好。如果對第四季度的一些變動因素進行調整，今年的營業利潤率似乎正在朝著您談到的長期目標 12% 邁進。那麼，從哲學上來說，當您過去這一年時，您如何考慮管理業務？您會考慮對某些產品進行更積極的投資，或者我們是否應該看到您超越 12% 的目標？謝謝。

I think what we've spoken about before, again, with the 4% comp is really what we look to from a longer-term perspective. And, at that level we get that slight leveraging on gross margin and in the SG&A. So, to the extent that we've outperformed, to your point, that threshold has been moved up a little bit more historically. But, we still look at that go forward. And, I think the other thing we've always said regarding gross margin, and specifically with the merch margin that we don't really expect to see improvement there. Because as we continue to increase our purchases and be able to leverage our buying position, we're reinvesting that in new and improved product to be able to help drive the traffic that will ultimately drive the comps and then more significant leveraging.

我認為我們之前討論過的 4% 薪酬確實是我們從長遠角度考慮的。而且，在這個水準上，我們對毛利率和銷售管理費用有輕微的影響。因此，就您而言，就我們的表現而言，該閾值在歷史上已經提高了一些。但是，我們仍然關注未來的發展。而且，我認為我們一直在談論的關於毛利率的另一件事，特別是關於商品利潤率，我們並不真正期望看到那裡的改善。因為隨著我們繼續增加購買量並能夠利用我們的購買頭寸，我們將其重新投資於新的和改進的產品，以幫助推動流量，最終推動競爭，然後實現更重要的槓桿作用。

Okay, and as a follow-up question on the fourth quarter, presumably in order to achieve that 4% comp level, given the disruption that you had in the early part of November, you are going to have to do better than that in the latter part of the quarter? And, I know you manage the business to a 4% comp. So, are you planning on managing the business to an above average or a level that's a bit higher than your 4% level? Is that going to change any of your merchandising decisions, et cetera? Thanks.

好的，作為第四季度的後續問題，考慮到 11 月初的干擾，想必為了達到 4% 的補償水平，您必須做得比 2019 年更好。而且，我知道您將業務管理為 4%。那麼，您是否計劃將業務管理到高於平均或略高於 4% 的水平？這會改變您的任何行銷決策等嗎？謝謝。

I think at this point our guidance is our guidance. We feel good with our guidance. And, given where the quarter is the best and the biggest part of the holiday season is ahead of us. And, really that's, I think, all that I can say at this point about the quarter and expectations and about the strategy.

我認為在這一點上我們的指導就是我們的指導。在我們的指導下，我們感覺良好。而且，考慮到這個季度是最好的，而且假期季節的最大部分就在我們面前。我想，這就是我目前能說的關於本季、預期和策略的全部內容。

Yes, and, just to add to that, we do look at the quarter as a whole. The full fourth quarter.

是的，而且，補充一點，我們確實將本季作為一個整體來看待。完整的第四季。

Okay. Thank you, very much. Good luck with the rest of holiday.

好的。非常感謝。祝假期剩下的時間一切順利。

Stephen Grambling, Goldman Sachs.

史蒂芬‧格蘭布林，高盛。

Thanks for taking my questions and congratulations on the quarter. You mentioned that half of the leases have been signed. Maybe you can provide some color on the types of leases that have been signed and any differences relative to the existing store base? And, whether that offers an opportunity for either better unit economics going forward?

感謝您回答我的問題並對本季表示祝賀。你提到一半的租約已經簽。也許您可以提供一些有關已簽署的租約類型以及與現有商店基地相關的任何差異的資訊？而且，這是否為未來更好的單位經濟效益提供了機會？

Stephen, we really -- first of all, we feel very good about having signed half of our leases already. It gives us a tremendous amount of confidence of how we feel about the 2013 class of stores ahead of us. But, we really don't expect big changes in the mix of our stores. Again, as we said earlier, and continue to say, more than half our stores will come from existing markets. So, we continue to obviously fill in existing markets. And, as we add new markets, I think -- I just don't expect to see much change of year-over-year.

史蒂芬，我們真的——首先，我們對已經簽署了一半的租約感到非常高興。這讓我們對 2013 年的商店類別充滿信心。但是，我們確實不期望我們的商店組合發生重大變化。再次，正如我們之前所說並繼續說的，我們一半以上的商店將來自現有市場。因此，我們顯然會繼續填補現有市場。而且，隨著我們增加新市場，我認為——我只是不希望看到同比有太大變化。

So, as just a quick follow-up to that, did you see any cannibalization? Or do you anticipate that within the comp expectations going forward?

那麼，作為對此的快速跟進，您是否看到任何蠶食？或者您預計這會在未來的補償預期範圍內嗎？

Obviously, when you're growing at the rate that we are -- it's a great question, Steve, but given where we are and the size of the chain, to date we haven't seen any material cannibalization that would affect the overall performance of the business. And, nothing that we would feel warrants our -- us having a conversation about it. If you look at how may stores we have, and the number of states that we are in today, we just don't see cannibalization. Over time, could that happen as we continue to fill in more markets? But, at this point, we just don't see it as being anything of material impact.

顯然，當你以我們的速度成長時——這是一個很好的問題，史蒂夫，但考慮到我們所處的位置和鏈條的規模，迄今為止，我們還沒有看到任何會影響整體績效的物質蠶食的業務。而且，我們認為沒有什麼值得我們對此進行對話。如果你看看我們擁有多少家商店，以及我們今天所處的州的數量，我們就不會看到蠶食。隨著時間的推移，當我們繼續填補​​更多市場時，這種情況會發生嗎？但是，目前我們並不認為它有任何實質影響。

Thanks. Good luck in year end.

謝謝。祝年底好運。

Thanks, and, again, I am sorry, just to add to that, Stephen, just again look at the performance of some of the earlier classes of stores going back to the 2000 -- literally to the 2002, '03, '04, and '05 that continue to comp as we've added stores and filled in.

謝謝，再次，我很抱歉，補充一點，斯蒂芬，再次看看一些早期類別的商店的表現，可以追溯到 2000 年——字面意思是 2002 年，'03，'04，和'05，隨著我們增加商店和填補，繼續比較。

Matt Nemer, Wells Fargo Securities.

馬特·內默，富國銀行證券。

Good afternoon, congrats on a great comp performance in Q3. I wanted to ask you about the new markets that you entered into, Atlanta, St. Louis, and Michigan. Is there anything -- have you noticed anything different in these new markets whether it be the speed with which stores ramp or maybe the mix of merchandise? Or anything that is maybe a little bit different than your core Pennsylvania, New Jersey, Maryland, markets?

下午好，恭喜第三季的出色表現。我想問你們進入的新市場，亞特蘭大、聖路易斯和密西根。您是否注意到這些新市場有什麼不同，無論是商店擴張的速度還是商品的組合？或者有什麼可能與您的核心賓州、新澤西州、馬裡蘭州市場略有不同的地方？

I think -- first of all, I would say, again, to reiterate, I think we feel with the holidays ahead of us, we feel really good where we are to date from the entire class of 2012. We feel good with the performance of all of the stores in 2012. Specifically, to Atlanta, we really haven't seen anything that we think would be unique to that market. One of the great things, and the strength, I think, of Five Below, is that we don't really alter and adjust the product mix from market to market. We limit the product mix changes only to team sports. And, I think it really is what has enabled us to go into as many markets as we've done, whether it's Atlanta and western Michigan and St. Louis this year, Chicago last year, Detroit, and so on and so forth. The great thing is that the Five Below mix of product really is universal. Again, putting team sports, and obviously severe weather impacts, snow, shifts versus the sunbelt, for lack of a better term. Our model and our product model is very consistent across the chain.

我認為——首先，我想再次重申，我認為我們對即將到來的假期感覺非常好，從 2012 年整個班級的情況來看，我們感覺非常好。 。我認為「五以下」的偉大之處之一，也是其優勢在於，我們並沒有真正改變和調整不同市場的產品組合。我們將產品組合的變化僅限於團隊運動。而且，我認為這確實使我們能夠進入盡可能多的市場，無論是今年的亞特蘭大、密西根州西部和聖路易斯，去年的芝加哥，底特律等等。最棒的是，「五以下」產品組合確實是通用的。再次，將團隊運動以及明顯的惡劣天氣影響、雪、轉變與陽光地帶進行比較，因為沒有更好的術語了。我們的模型和我們的產品模型在整個鏈條上非常一致。

Okay, and then, just a follow-up for Ken. You didn't mention merchandise margins in your gross margin discussion. Is it fair to assume that like last quarter they were relatively flat year-over-year?

好的，然後，這是肯的後續行動。您在毛利率討論中沒有提及商品利潤。假設與上季一樣，它們與去年同期相比相對持平，是否公平？

Yes. As we've seen in the past, it was consistent, relatively consistent year-over-year.

是的。正如我們過去所看到的，它是一致的，逐年相對一致。

And, actually, if I could just sneak in one more, given the -- on inventory, given the slower first half of November and the supply disruptions that you talked about, how do you feel -- do you feel like you are a little light or a little heavy going into holiday season on inventory?

事實上，如果我能再偷偷地講一下，考慮到庫存、考慮到 11 月上半月的放緩以及您談到的供應中斷，您感覺如何——您是否覺得自己有點進入假期季節庫存量輕還是重？

I think that Tom had mentioned it before, I think we feel we are well-positioned for holiday at this stage of the game relative to our inventory and our operations.

我想湯姆之前已經提到過，我認為相對於我們的庫存和運營，我們覺得在遊戲的這個階段我們已經為假期做好了準備。

Ken, I'll just say again. Obviously, early November was impacted so there was some sales that didn't happen in November. But, we really feel that given our business and how our business operates and how much of our business is in the month of December, we feel we're pretty well-positioned from an inventory and a mix standpoint of view as we get into the all-important December time frame.

肯，我再說一次。顯然，11 月初受到了影響，因此有一些銷售在 11 月沒有發生。但是，我們確實認為，考慮到我們的業務、我們的業務運作方式以及 12 月份我們的業務量，我們認為，從庫存和混合的角度來看，當我們進入最重要的 12 月時間框架。

Okay, great. Thanks, so much.

好的，太好了。非常感謝。

Meredith Adler, Barclays.

梅雷迪思·阿德勒，巴克萊銀行。

Yes, actually I have to say just about all my questions have been answered. In fact, you answered my last question just now about how the fourth quarter balances out in terms of volume of sales. But, basically you are saying December is absolutely the key month? Right?

是的，實際上我不得不說我所有的問題都已經得到解答。事實上，您剛才回答了我的最後一個問題，第四季度的銷售如何平衡。但是，基本上你是說 12 月絕對是關鍵月份？正確的？

Yes. If you look at the fourth quarter the overwhelming penetration of sales will take place in December.

是的。如果你看看第四季度，壓倒性的銷售滲透將發生在 12 月。

And, that's been the same over time?

而且，隨著時間的推移，情況也一樣嗎？

Yes.

是的。

Great. Thank you.

偉大的。謝謝。

Christian Buss, Credit Suisse.

克里斯蒂安·巴斯，瑞士信貸。

Yes, I was wondering if we could talk a bit about the distribution center that you are going to be opening up. Can you talk a bit about how we should think about incremental spend on that in 2013?

是的，我想知道我們是否可以談談您將要開設的配送中心。您能否談談我們應該如何考慮 2013 年這方面的增量支出？

Yes, again I don't want to get too far ahead of '13. We are going to give our '13 guidance, I guess, on our Q4 call. We do see a drag, as we've discussed before, with bringing a new distribution center on for next year. From a basis point perspective, it's approximately -- it will be approximately 50 basis points on the distribution line, which again is included in cost of goods sold.

是的，我又不想在 13 年之前走得太遠。我想，我們將在第四季的電話會議上給予 13 年的指導。正如我們之前討論過的，我們確實看到了明年建立一個新的配送中心的阻力。從基點的角度來看，分銷線上大約有 50 個基點，這又包含在銷售成本中。

That's for a full year.

這是一整年的時間。

And, I'm sorry, that's a full-year drag.

而且，我很抱歉，這是全年的拖累。

Okay.

好的。

And then, from an investment standpoint, I think we've spoken about, we'll have some investment this year from an expenditure standpoint. And, I think in the $4 million range in 2013.

然後，從投資的角度來看，我認為我們已經談到，從支出的角度來看，我們今年將進行一些投資。而且，我認為 2013 年的收入在 400 萬美元左右。

Okay that's very helpful. And then, once that center comes online, do you think over the longer term there will be a shift in the mix of new markets versus existing markets in the store opening cadence?

好的，這非常有幫助。然後，一旦該中心上線，您認為從長遠來看，新市場與現有市場的開店節奏是否會改變？

We haven't -- I don't think we've looked out that far. I think in the near term, as we've said before, that mix where we have relatively greater than 50% in existing markets, as we open up, and less than 50% in new regions and markets. I think we feel that's going to be what we will see in the near term.

我們還沒有——我認為我們還沒有考慮到那麼遠。我認為，正如我們之前所說，短期內，隨著我們開放，我們在現有市場中的份額相對高於 50%，而在新地區和市場中的份額將低於 50%。我認為我們認為這將是我們在短期內看到的情況。

That's very helpful. Thank you, very much, and best of luck.

這非常有幫助。非常感謝，祝你好運。

Thanks, Christian.

謝謝，克里斯蒂安。

Patrick McKeever, MKM Partners.

派崔克麥基弗，MKM 合夥人。

Thanks. So, you had a slight acceleration in same-store sales in the third quarter against a much more difficult comparison in the second quarter. And, were not hearing anything about -- I mean clearly there wasn't much of an impact from all of the consumer anxiety around the election and the fiscal cliff and those kinds of things. But other retailers, and some that you compete with, maybe not directly but nonetheless, have talked about some impact on their discretionary sales because of the heightened sense of consumer anxiety that's out there. And, realizing that you have a teen and pre-teen focus, the parents must be affected in some way. I'm just wondering if you could talk to the resilience of your sales in the face of some of those issues?

謝謝。因此，第三季的同店銷售額略有成長，而第二季的比較則困難得多。而且，我們沒有聽到任何消息——我的意思是，顯然消費者對選舉和財政懸崖等事情的焦慮並沒有產生太大的影響。但其他零售商，以及一些與你競爭的零售商，可能不是直接競爭，但仍然談到了對他們的可自由支配銷售的一些影響，因為消費者的焦慮感加劇。而且，意識到你關注的是青少年和青春期前的孩子，父母一定會受到某種程度的影響。我只是想知道您是否可以談談您的銷售在面對其中一些問題時的恢復能力？

I think, Q3 obviously speaks for itself. We feel really good about Q3 and we feel really good about the consistence of performance the company has had for quite a while, since back to 2006. I think -- I wish I could answer your question. I think the whole issue on fiscal cliff and the impact it will have or not have on consumer spending, how that translates to parents versus -- for kids versus themselves. I just don't think -- I wouldn't know how to answer it. What we do know is, obviously, the quarter came out solid for us. We feel really good about where the quarter was. And, we know that we had some impact to ourselves in the month of November. I think time will tell whether there's any impact from the fiscal cliff or not. I know it's not the answer you want to hear, but I just don't know how to answer it.

我認為，第三季顯然是不言而喻的。我們對第三季的感覺非常好，而且我們對公司自 2006 年以來相當長一段時間以來業績的一致性感覺非常好。我認為財政懸崖的整個問題及其對消費者支出的影響或不影響，這如何轉化為父母與孩子與他們自己之間的關係。我只是不認為——我不知道如何回答這個問題。我們所知道的是，顯然，這個季度對我們來說表現不錯。我們對本季的情況感到非常滿意。而且，我們知道 11 月我們對自己產生了一些影響。我認為時間會證明財政懸崖是否會產生任何影響。我知道這不是你想聽到的答案，但我就是不知道如何回答。

And, let me just follow up on the comps. I think you're looking at the comps from the comparable comps from 2011, in Q2 of 2011 that was anniversarying a significant trend item from the prior year. So, I think that is why you are seeing those low comps in '11 in Q2 and then getting a little bit more normalized in Q3. But, that was actually an impact from the prior year back in '10. So, our trend has been relatively consistent through this year.

並且，讓我跟進比較。我認為您正在查看 2011 年的可比較比較中的比較，2011 年第二季度是上一年的一個重要趨勢項目的周年紀念日。所以，我認為這就是為什麼你會在第二季看到 11 年的低競爭，然後在第三季變得更加正常化。但是，這實際上是 10 年的影響。因此，今年我們的趨勢相對一致。

Right, right. And, --.

是的是的。和， - 。

And we're --.

我們是——。

I do remember that, right.

我確實記得這一點，對吧。

We've done well both in good times about bad times. The company has performed well pre-2008 and post-2008. So, there is part of us that says we feel that this is a concept that has good momentum and has performed well in both good and bad times, and we believe that should continue over time.

無論是順境還是逆境，我們都做得很好。該公司2008年前和2008年後表現良好。因此，我們中的一部分人表示，我們認為這是一個勢頭良好的概念，並且在順境和逆境中都表現良好，我們相信這種情況應該隨著時間的推移而持續下去。

How about thinking about the comparison that you face in the fourth quarter, the 12.1%. Is there anything special there that we should think about terms of hot trend items or the weather? Anything special to last year's fourth quarter?

想想第四季 12.1% 的比較怎麼樣？有什麼特別的地方值得我們考慮熱門流行單品或天氣嗎？去年第四季有什麼特別的嗎？

No, I think, again, we -- as Tom mentioned, we took everything into consideration in coming up with our guidance. Whether it was where we were in early November and the trends we saw towards the end of November, but I don't think there's anything special that we saw coming off of last year.

不，我想，正如湯姆所提到的，我們在提出指導意見時考慮了一切。無論是我們在 11 月初的情況還是我們在 11 月底看到的趨勢，但我認為我們去年沒有看到任何特別的東西。

Okay. Thanks, very much.

好的。非常感謝。

Thanks.

謝謝。

Ladies and gentlemen, that concludes the Q&A session, we thank you for dialing in. You may now disconnect.

女士們先生們，問答環節到此結束，我們感謝您撥打電話。