Five Below posts robust Q2 as sales soar, rolls out simplified pricing structure
Five Below reported top- and bottom-line second-quarter results that topped expectations despite an “ever-changing tariff environment,” and raised its full-year guidance.
The tween and teen extreme-value retailer also continued its expansion during the quarter, opening 32 net new stores. It ended the period with 1,858 locations in 44 states, and is on track to open a total of 150 stores in 2025.
On the company’s earnings call, Winnie Park, who was appointed CEO in December, said that, against the backdrop of higher prices industry wide due to tariffs, Five Below is “laser focused” on ensuring a compelling value proposition for customers.
“Specifically, in the second quarter, we executed our planned strategic pricing changes to whole price points in order to simplify the shopping experience for our customers and execution for our store crew,” she told analysts. “The majority of items outside of our candy world are now priced at $1, $2, $3, $4 and $5. We’ve also been selective in assorting products above $5 that represent great value for money."
Five Below’s net income totaled $42.8 million, with adjusted earnings per share of $0.77, for the quarter ended Aug. 2, compared to $33.0 million in the year-ago quarter. Adjusted earnings per share were $0. 81.
Sales jumped 23.7% to $1.03 billion, beating analysts estimates of of $992.7 million. Same-store sales rose 12.4%.
"These results demonstrate the effectiveness of our strategy and are a testament to the hard work, dedication and tight collaboration of our teams across the company, especially in an ever-changing tariff environment,” Park stated in the earnings release. “We have been maniacally focused on executing with excellence, specifically curating Wow! newness in our assortment, simplifying our pricing while maintaining extreme value, improving in-stock levels and optimizing product flow.”
Five Below raised its full-year 2025 revenue guidance to between $4.44 billion to $4.52 billion, up $4.33 billion to $4.42 billion. The company also raised its full-year adjusted earnings forecast to $4.76 to $5.16 per share, up from its previous estimate of $4.25 to $4.72 per share.
