Selling items priced below $5 to teenagers doesn’t seem like the recipe for an explosive growth story, but Five Below has made that strategy a very profitable one. Last year, the company earned $150 million in profit after selling $1.56 billion worth of various items such as basketballs, candy, phone cases, remote control cars, yoga mats, and more.
Five Below opened its first store in 2002 in Pennsylvania and now has 750 locations in 33 states. The store chain is going national with plans to open another 145 to 150 stores this year and expand to three new states. The stock has already tripled over the last two years, but with half the country to expand into, Five Below is a long way off from reaching its full potential.
Here are several reasons why Five Below is succeeding in the challenging brick-and-mortar retail world, and why it should remain a great growth stock for investors… The Motley Fool