five-20210501

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(mark one)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 1, 2021.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-35600

Five Below, Inc.

(Exact name of Registrant as Specified in its Charter)


Pennsylvania						75-3000378
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

701 Market Street
Suite 300
Philadelphia
Pennsylvania						19106
(Address of Principal Executive Offices)						(Zip Code)

(215) 546-7909

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	FIVE	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock, $0.01 par value, outstanding as of June 3, 2021 was 55,993,368.


INDEX

PART I - FINANCIAL INFORMATION		Page
Item 1.	Consolidated Financial Statements (unaudited)	4
	Unaudited Consolidated Balance Sheets as of May 1, 2021 , January 30 , 202 1 and May 2 , 202 0	4
	Unaudited Consolidated Statements of Operations for the Thirteen Weeks Ended May 1 , 2021 and May 2 , 2020	5
	Unaudited Consolidated Statements of Shareholders' Equity for the Thirteen Weeks Ended May 1, 2021 and May 2, 2020	6
	Unaudited Consolidated Statements of Cash Flows for the Thirt een Weeks Ended May 1, 2021 and May 2, 2020	7
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	27

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30

PART I - FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

FIVE BELOW, INC.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share data)


	May 1, 2021		January 30, 2021		May 2, 2020
Assets
Current assets:
Cash and cash equivalents	$	84,170	$	268,783	$	69,760
Short-term investment securities	299,289		140,928		69,220
Inventories	326,710		281,267		367,516
Prepaid income taxes and tax receivable	2,248		6,350		11,974

Prepaid expenses and other current assets	55,175		58,085		54,560
Total current assets	767,592		755,413		573,030
Property and equipment, net of accumulated depreciation and amortization of $297,322, $278,019, and $231,234, respectively.	624,775		565,351		475,646
Operating lease assets	1,023,883		975,862		867,295
Deferred income taxes	—		—		4,391
Long-term investment securities	8,684		—		—
Other assets	18,794		18,144		12,363
	$	2,443,728	$	2,314,770	$	1,932,725

Liabilities and Shareholders’ Equity
Current liabilities:
Line of credit	$	—	$	—	$	—

Accounts payable	169,392		138,622		137,480
Income taxes payable	7,831		2,025		9,050
Accrued salaries and wages	26,942		43,445		5,212
Other accrued expenses	114,252		108,504		85,377
Operating lease liabilities	147,176		143,074		126,668

Total current liabilities	465,593		435,670		363,787

Other long-term liabilities	1,048		1,048		1,678
Long-term operating lease liabilities	1,014,768		967,255		877,495
Deferred income taxes	31,677		28,911		—
Total liabilities	1,513,086		1,432,884		1,242,960
Commitments and contingencies (note 6)
Shareholders’ equity:
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,994,069, 55,935,237, and 55,735,417 shares, respectively.	560		559		558
Additional paid-in capital	320,234		321,075		302,898
Retained earnings	609,848		560,252		386,309
Total shareholders’ equity	930,642		881,886		689,765
	$	2,443,728	$	2,314,770	$	1,932,725

See accompanying notes to consolidated financial statements.

FIVE BELOW, INC.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)


	Thirteen Weeks Ended
	May 1, 2021		May 2, 2020
Net sales	$	597,823	$	200,899
Cost of goods sold	396,954		180,438
Gross profit	200,869		20,461
Selling, general and administrative expenses	137,182		92,657
Operating income (loss)	63,687		(72,196)
Interest (expense) income and other (expense) income, net	(977)		143


Income (loss) before income taxes	62,710		(72,053)
Income tax expense (benefit)	13,114		(21,471)
Net income (loss)	$	49,596	$	(50,582)





Basic income (loss) per common share	$	0.89	$	(0.91)
Diluted income (loss) per common share	$	0.88	$	(0.91)

Weighted average shares outstanding:
Basic shares	55,970,620		55,723,045
Diluted shares	56,274,491		55,723,045

See accompanying notes to consolidated financial statements.

FIVE BELOW, INC.

Consolidated Statements of Shareholders’ Equity

(Unaudited)

(in thousands, except share data)


	Common stock	Additional paid-in capital	Retained earnings	Total shareholders’ equity

								Shares			Amount

Balance, January 30, 2021			55,935,237	$	559	$	321,075		$	560,252		$	881,886

Share-based compensation expense			—	—		5,695			—			5,695
Issuance of unrestricted stock awards			400	—		81			—			81
Exercise of options to purchase common stock			200	—		6			—			6
Vesting of restricted stock units and performance-based restricted stock units			92,914	1		—			—			1
Common shares withheld for taxes			(34,682)	—		(6,623)			—			(6,623)



Net Income			—	—		—			49,596			49,596
Balance, May 1, 2021			55,994,069	$	560	$	320,234		$	609,848		$	930,642


			Common stock			Additional paid-in capital		Retained earnings		Total shareholders’ equity

	Shares	Amount
Balance, February 1, 2020			55,712,067	$	557	$	322,330	$	436,891	$	759,778

Share-based compensation benefit			—	—		(3,536)		—		(3,536)

Exercise of options to purchase common stock			2,136	—		65		—		65
Vesting of restricted stock units and performance-based restricted stock units			204,769	2		—		—		2
Common shares withheld for taxes			(46,532)	—		(3,299)		—		(3,299)
Repurchase and retirement of common stock			(137,023)	(1)		(12,662)		—		(12,663)


Net Loss			—	—		—		(50,582)		(50,582)
Balance, May 2, 2020			55,735,417	$	558	$	302,898	$	386,309	$	689,765

See accompanying notes to consolidated financial statements.

FIVE BELOW, INC.

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)


	Thirteen Weeks Ended
	May 1, 2021		May 2, 2020
Operating activities:
Net income (loss)	$	49,596	$	(50,582)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	19,237		16,188





Share-based compensation expense (benefit)	5,797		(3,526)
Deferred income tax expense (benefit)	2,766		(13,107)
Other non-cash expenses	176		225

Changes in operating assets and liabilities:
Inventories	(45,443)		(43,488)

Prepaid income taxes and tax receivable	4,102		(7,911)
Prepaid expenses and other assets	3,333		21,417
Accounts payable	30,863		(342)
Income taxes payable	5,806		(455)
Accrued salaries and wages	(16,503)		(14,661)

Operating leases	3,594		32,242
Other accrued expenses	3,418		(1,253)
Net cash provided by (used in) operating activities	66,742		(65,253)
Investing activities:
Purchases of investment securities and other investments	(232,437)		(43,344)
Sales, maturities, and redemptions of investment securities	64,142		33,353
Capital expenditures	(76,444)		(40,028)
Net cash used in investing activities	(244,739)		(50,019)
Financing activities:

Borrowing on note payable under Revolving Credit Facility	—		50,000
Repayment of note payable under Revolving Credit Facility	—		(50,000)
Cash paid for Revolving Credit Facility financing costs	—		(1,563)




Repurchase and retirement of common stock	—		(12,663)
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units	7		67
Common shares withheld for taxes	(6,623)		(3,299)




Net cash used in financing activities	(6,616)		(17,458)
Net decrease in cash and cash equivalents	(184,613)		(132,730)
Cash and cash equivalents at beginning of period	268,783		202,490
Cash and cash equivalents at end of period	$	84,170	$	69,760

Supplemental disclosures of cash flow information:
Non-cash investing activities
Increase in accrued purchases of property and equipment	$	2,216	$	12,944

See accompanying notes to consolidated financial statements.

FIVE BELOW, INC.

Notes to Consolidated Financial Statements

(Unaudited)

(1) Summary of Significant Accounting Policies

(a)Description of Business

Five Below, Inc. (collectively referred to herein with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the tween and teen demographic. The Company offers an edited assortment of products, with most priced at $5 and below.

The Company’s edited assortment of products includes select brands and licensed merchandise. The Company believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the Company is currently receiving; thus, it is not dependent on a single vendor or a group of vendors.

The Company is incorporated in the Commonwealth of Pennsylvania and, as of May 1, 2021, operated in 39 states that include Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Massachusetts, New Hampshire, West Virginia, North Carolina, New York, Connecticut, Rhode Island, Ohio, Illinois, Indiana, Michigan, Missouri, Georgia, Texas, Tennessee, Maine, Alabama, Kentucky, Kansas, Florida, South Carolina, Mississippi, Louisiana, Wisconsin, Oklahoma, Minnesota, California, Arkansas, Iowa, Nebraska, Arizona, Nevada, Colorado and Utah. As of May 1, 2021 and May 2, 2020, the Company operated 1,087 stores and 920 stores, respectively, each operating under the name “Five Below,” and sells merchandise on the internet, through the Company's fivebelow.com e-commerce website.

(b) Impact of COVID-19

As a result of the COVID-19 pandemic, our business operations and results of operations, including our net sales, earnings and cash flows, were materially impacted in fiscal 2020 as a result of the temporary closures of our stores in the first half of 2020, and decreased customer traffic in stores, including as the result of limitations on the number of persons permitted in stores at one time by certain local and state regulations.

The Company's ability to operate improved beginning in the second half of fiscal 2020 and extending into fiscal 2021. However, the ultimate health and economic impact of the COVID-19 pandemic remains uncertain. If the pandemic were to worsen, our business operations, including net sales, earnings and cash flows, may be materially impacted. Further, the Company may determine to reinstate any of the mitigation measures implemented in fiscal 2020 that have since been modified or terminated, or take any additional steps that we consider necessary.

The Company operates on a 52/53-week fiscal year ending on the Saturday closest to January 31. References to "fiscal year 2021" or "fiscal 2021" refer to the period from January 31, 2021 to January 29, 2022, which is a 52-week fiscal year. References to "fiscal year 2020" or "fiscal 2020" refer to the period from February 2, 2020 to January 30, 2021, which is a 52-week fiscal year. The fiscal quarters ended May 1, 2021 and May 2, 2020 refer to the thirteen weeks ended as of those dates.

(d) Basis of Presentation

The consolidated balance sheets as of May 1, 2021 and May 2, 2020, the consolidated statements of operations for the thirteen weeks ended May 1, 2021 and May 2, 2020, the consolidated statements of shareholders’ equity for the thirteen weeks ended May 1, 2021 and May 2, 2020 and the consolidated statements of cash flows for the thirteen weeks ended May 1, 2021 and May 2, 2020 have been prepared by the Company in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the aforementioned financial statements include all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions that impact the financial statements) necessary to present fairly the financial position at the balance sheet dates and the results of operations and cash flows for the periods ended May 1, 2021 and May 2, 2020. The balance sheet as of January 30, 2021, presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2020 as filed with the Securities and Exchange Commission on March 18, 2021 and referred to herein as the “Annual Report,” but does not include all annual disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended January 30, 2021 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen weeks ended May 1, 2021 and May 2, 2020 are not necessarily indicative of the consolidated operating results for the year ending January 29, 2022 or any other period. The Company's business is seasonal and as a result, the Company's net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season.

(e) Recently Issued Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The impact of the adoption of ASU 2020-04 is not expected to be significant to the Company's consolidated financial statements.

(f) Use of Estimates

The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, net realizable value for inventories, income taxes, share-based compensation expense and the incremental borrowing rate utilized in operating lease liabilities.

(g) Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Inputs, other than Level 1, that are either directly or indirectly observable.

Level 3: Unobservable inputs developed using the Company’s estimates and assumptions which reflect those that market participants would use.

The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.

The Company’s financial instruments consist primarily of cash equivalents, investment securities, accounts payable, and borrowings, if any, under a line of credit. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of the investments in corporate bonds are Level 1 while the investments in municipal bonds are Level 2. The fair market values of Level 2 instruments are determined by management with the assistance of a third-party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities.

As of May 1, 2021, January 30, 2021, and May 2, 2020, the Company had cash equivalents of $67.6 million, $250.7 million and $54.0 million, respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, and corporate bonds with original maturities of 90 days or less. Fair value for cash equivalents was determined based on Level 1 inputs.

As of May 1, 2021, January 30, 2021, and May 2, 2020, the Company's investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands):


	As of May 1, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Short-term:
Corporate bonds	$	246,179	$	—	$	125	$	246,054

Municipal bonds	53,110		—		18		53,092
Total	$	299,289	$	—	$	143	$	299,146

Long-term:
Corporate bonds	$	7,025	$	—	$	19	$	7,006

Municipal bonds	1,659		—		2		1,657
Total	$	8,684	$	—	$	21	$	8,663


	As of January 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Short-term:
Corporate bonds	$	95,530	$	—	$	53	$	95,477

Municipal bonds	45,398		—		7		45,391
Total	$	140,928	$	—	$	60	$	140,868


	As of May 2, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Short-term:
Corporate bonds	$	69,220	$	—	$	33	$	69,187


Total	$	69,220	$	—	$	33	$	69,187

Short-term investment securities as of May 1, 2021, January 30, 2021, and May 2, 2020 all mature in one year or less. Long-term investment securities as of May 1, 2021 all mature after one year but in less than three years.

(h) Prepaid Expenses and Other Current Assets

Prepaid expenses as of May 1, 2021, January 30, 2021, and May 2, 2020 were $20.8 million, $19.0 million, and $14.3 million, respectively. Other current assets as of May 1, 2021, January 30, 2021, and May 2, 2020 were $34.4 million, $39.1 million, and $40.3 million, respectively.

(i) Other Accrued Expenses

Other accrued expenses include accrued capital expenditures of $31.5 million, $29.2 million, and $34.2 million as of May 1, 2021, January 30, 2021, and May 2, 2020, respectively.

(2)Revenue from Contracts with Customers

Revenue Transactions

Revenue from store operations is recognized at the point of sale when control of the product is transferred to the customer at such time. Internet sales, through the Company's fivebelow.com e-commerce website, are recognized when the customer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no significant reserve has been recorded. Gift card sales to customers are initially recorded as liabilities and recognized as sales upon redemption for merchandise or as breakage revenue in proportion to the pattern of redemption of the gift cards by the customer in net sales.

The transaction price for the Company’s sales is based on the item’s stated price. To the extent that the Company charges customers for shipping and handling on e-commerce sales, the Company records such amounts in net sales. Shipping and handling costs, which include fulfillment and shipping costs related to the Company's e-commerce operations, are included in costs of goods sold. The Company has chosen the pronouncement's policy election, which allows it to exclude all sales taxes from net sales in the accompanying consolidated statements of operations.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands):


	Thirteen Weeks Ended				Thirteen Weeks Ended
	May 1, 2021				May 2, 2020
	Amount		Percentage of Net Sales		Amount		Percentage of Net Sales
Leisure	$	296,289	49.6	%	$	96,353	48.0	%
Fashion and home	179,876		30.1	%	67,159		33.4	%
Party and snack	121,658		20.3	%	37,387		18.6	%

Total	$	597,823	100.0	%	$	200,899	100.0	%

(3) Leases

The Company determines if an arrangement contains a lease at the inception of a contract. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and operating lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the rate implicit in the lease is not readily determinable for the Company's leases, the Company utilizes its incremental borrowing rate to determine the present value of future lease payments. The incremental borrowing rate represents a significant judgment and is determined based on an analysis of the Company's synthetic credit rating, prevailing financial market conditions, corporate bond yields, treasury bond yields, and the effect of collateralization. The operating lease assets also include lease payments made before commencement and exclude lease incentives.

The Company’s real estate leases typically contain options that permit renewals for additional periods of up to five years. For real estate leases, except for renewals that generally take the lease to a ten-year term, the options to renew are not considered reasonably certain at lease commencement because the Company reevaluates each lease on a regular basis to consider the economic and strategic benefits of exercising the renewal options, and regularly opens, relocates or closes stores to align with its operating strategy. Therefore, generally, except for renewals that take the lease to a ten-year term, the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the operating lease asset and operating lease liability as the exercise of such options is not reasonably certain. The Company’s operating lease agreements, including assumed renewals, which are generally those that take the lease to a ten-year term, expire through fiscal 2034. Similarly, renewal options are not included in the lease term for non-real estate leases because they are not considered reasonably certain of being exercised at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheets and lease expense is recognized on a straight-line basis over the term of the short-term lease.

For certain real estate leases, the Company accounts for lease components and nonlease components as a single lease component. Certain real estate leases require additional payments for reimbursement of real estate taxes, common area maintenance and insurance as well as payments based on sales volume, all of which are expensed as incurred as variable lease costs. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the operating lease assets and operating lease liabilities.

In response to the COVID-19 pandemic, certain of the Company's landlords agreed to temporary rent concessions. These rent concessions generally related to deferrals and abatements of certain rent payments due between April 2020 through October 2020 into future periods.

In accordance with the Financial Accounting Standards Board's staff guidance regarding rent concessions related to the effects of the COVID-19 pandemic, the Company has elected to account for the concessions agreed to by landlords that do not result in a substantial increase in the obligations of the lessee as if the enforceable rights and obligations for those concessions existed in the original lease agreements and the Company has elected to not remeasure the related lease liabilities and right-of-use assets. For qualifying rent abatement concessions, the Company has recorded negative variable lease expense for the amount of the concession during the period of relief, and for qualifying deferrals of rental payments, the Company has recognized a non-interest bearing payable in lieu of recognizing a decrease in cash for the lease payment that would have been made based on the original terms of the lease agreement, which will be reduced when the deferred payment is made in the future.

During the thirteen weeks ended May 1, 2021, the Company committed to 59 new store leases with average terms of approximately 10 years that have future minimum lease payments of approximately $120.4 million.

All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of May 1, 2021 and May 2, 2020, the weighted average remaining lease term for the Company's operating leases was 7.9 years and 8.1 years, respectively, and the weighted average discount rate was 6.0% and 6.5%, respectively.

The following table is a summary of the Company's components for net lease costs (in thousands):


	Thirteen Weeks Ended
Lease Cost	May 1, 2021		May 2, 2020
Operating lease cost	$	47,529	$	40,348
Variable lease cost	13,631		11,343
Net lease cost*	$	61,160	$	51,691

* Excludes short-term lease cost, which is immaterial.

The following table summarizes the maturity of lease liabilities under operating leases as of May 1, 2021 (in thousands):


Maturity of Lease Liabilities	Operating Leases
2021	$	159,764
2022	198,544
2023	191,360
2024	180,156
2025	165,338
After 2025	545,477
Total lease payments	1,440,639
Less: imputed interest	278,695
Present value of lease liabilities	$	1,161,944

The following table summarizes the supplemental cash flow disclosures related to leases (in thousands):

Thirteen Weeks Ended

SEC Form 10-Q filed by Five Below, Inc.