Five Below, Inc. is bolstering its executive ranks and board of directors this week, moves that come on the heels of a strong first quarter that saw the Philadelphia-based discount retailer post net sales growth of 32.5% to $1.29 billion.
New C-Suite Appointments
The company named Rodney Lastinger as Chief Retail Officer and Christos Yatrakis as Chief Legal Officer. Both will report to Kenneth Bull, Chief Operating Officer. Lastinger joins June 22; Yatrakis joined June 15.
Lastinger most recently served as Chief Operating Officer at GNC, where he oversaw more than 2,200 franchise and corporate locations, improving comparable sales trends and EBITDA through operational transformation and supply chain work. Before GNC, he served as President of Retail at Conn’s Home Plus and spent 18 years at Target Corporation, rising to Senior Vice President of Stores.
Yatrakis brings more than 20 years of experience leading legal functions at global public consumer companies. He most recently served as Chief People and Legal Officer at Allbirds, Inc., overseeing legal, corporate governance, SEC compliance and people functions across more than 20 countries. He also held senior roles at Gymshark USA and Arrow Electronics.
“We are thrilled to welcome Rodney and Christos to the Five Below crew,” CEO Winnie Park said in a press release. “Rodney brings exceptional operational leadership and a proven track record of driving results and building high-performing teams across large, multi-unit organizations.”
A New Independent Director
Separately, the company announced the election of Robert Lynch as an independent director, bringing the board to nine members. Lynch is the CEO of Shake Shack, Inc., a role he has held since May 2024. He previously served as President and CEO of Papa John’s International and held multiple leadership positions at Arby’s Restaurant Group, Taco Bell, H.J. Heinz Company and Procter and Gamble.
“We are excited to welcome Rob to our board,” said Mike Devine, Chairman of Five Below, in a press release. “Rob’s broad experience in leading multi-unit consumer companies will be valuable as we continue to drive growth and execute on the substantial long-term opportunity that exists for Five Below.”
Strong Q1 Sets the Stage
In the first quarter ended May 2, comparable sales rose 22.7%, the fourth consecutive quarter of double-digit comp growth. Net income more than tripled to $123.1 million from $41.1 million a year earlier.
Much of the quarter’s energy centered on the squishy dumpling, a small squeezable toy that had been in Five Below’s assortment for roughly five years before exploding into mainstream popularity this spring. Park said the company’s role was not inventing the trend but amplifying it, using social listening to identify momentum, engaging and reposting to accelerate it, and then building out a broader assortment of squishy products to sustain traffic. “It’s not the what, but the how,” she said on the company’s earnings call.
The social-first marketing pivot has been transformative, Park said. Five Below deployed creator content, AI-generated marketing materials, connected TV advertising and social listening tools across TikTok, Instagram and YouTube. Park said the customer database has grown at a geometric rate quarter over quarter.
The company added 49 net new stores in Q1, reaching 1,970 locations across 46 states, and expects to open approximately 150 net new stores for the full fiscal year.
A Cautious Outlook for the Second Half
Despite the strong start, Five Below is projecting a deceleration in the second half. Full-year net sales are expected to reach $5.4 billion to $5.48 billion, with comparable sales growth of 6% to 8%. The company is cycling strong prior-year comparisons, and CFO Dan Sullivan cited rising fuel costs, persistent inflation and a softening labor market as headwinds facing Five Below’s core teen and tween customer base.
