Dive Brief:
- Five Below appointed Kristy Chipman to the CFO seat effective July 17, the company announced Wednesday.
- Chipman succeeds Ken Bull, who was promoted to chief operating officer of the Philadelphia, Pennsylvania-based Five Below back in March. Bull has been with the company since it operated only 27 stores back in 2005, according to the company statement. The retailer now operates 1,367.
- Prior to taking the financial helm of the on-trend extreme-budget retailer, Chipman was executive vice president, CFO and COO of Ruth Chris’s Hospitality Group, the renowned steakhouse brand, the statement said. Prior to Ruth Chris’s, Chipman also held senior finance roles at such brands as OrangeTheory Fitness, McDonald’s Corporation and Domino’s Pizza.
Dive Insight:
The incoming finance chief is set to receive an annual base salary of $600,000, with a target payout under the company’s annual incentive plan equal to 75% of her base salary, according to a June 14 filing with the Securities and Exchange Commission.
Five Below opened 27 new stores in the first quarter ended April 29, an 11.6% increase from the end of the first quarter of fiscal 2022, according to a June 1 earnings release. The company also reported net sales rose 13.5% to $726.2 million in the fiscal first quarter from $639.6 million in the year earlier period, the release said.
Back in March, Five Below announced plans to expand its Five Beyond store-in-store concept — which offers items above the company’s signature $5 price point — to 400 locations, sister publication Retail Dive previously reported.
“While our customers face multiple macro headwinds, we continue to be there for them, flexing our offering to bring them the Wow products they need and want,” President and CEO Joel Anderson said on the company’s most recent earnings call.
“We now plan to open a record 200-plus new stores and complete over 400 conversions to the new Five Beyond prototype in 2023 while building a strong pipeline of new stores for 2024. With the headwinds of the pandemic moderating, combined with our continued experience and efficiency-based initiatives, we believe we are well-positioned to continue our high growth,” he said.
According to Anderson, customers who spend $6 or more on an item spend about twice as much as those who only buy Five Below items. Ultimately, the company is aiming to have “this concept everywhere,” he said.
Meanwhile, competitors like Chesapeake, Virginia-based Dollar Tree are forecasting weaker than expected 2023 profit as they face a pullback in consumer spending and increased labor costs, CFO Dive previously reported. The budget retailer also recently went through a C-suite shakeup, during which an alum of Qurate Retail Group, Jeffery Davis, was appointed CFO.
"We are excited to welcome Kristy to the Five Below team as our new CFO," said Anderson in the statement of her appointment. "Kristy has a track record of delivering results with a collaborative approach and has demonstrated strong financial stewardship as a leader throughout her career. We look forward to her leadership of our finance organization and her contributions in helping drive our Triple Double strategy,” he said — referring to goals of tripling the company’s store front count and doubling sales by 2025.
