Five Below tops Street as sales soar; on track for 150 new stores
Five Below delivered robust second-quarter results on both its top and bottom line as its value message continues to resonate with consumers.
The tween and teen discount retailer, which reported its fifth consecutive quarter of double-digit comparable sales, said it was raising its full-year sales and adjusted earnings outlook based on its strong first half and the “significant opportunities” that lie ahead.
Net income was $221.4 million, with earnings per share of $3.99, for the quarter ended Aug. 2, compared to $42.8 million, with earnings per share of $0.77, in the year-ago quarter. Adjusted earnings per share were $1.68 compared to $0.81 in the second quarter of fiscal 2025. Analysts had expected earnings per share of $1.34
Operating income was $429.6 million compared to $103.2 million the year-ago quarter. Adjusted operating income was $268.0 million compared to $114.7 million in the prior period.
Net sales increased by 22.9% to $1.26 billion, topping estimates of $1.22. Comparable sales rose by 14.1%.
“We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy,” said CEO Winnie Park. “Our crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop. Just as importantly, our crew continues to drive new store growth at a higher level of executional excellence to bring Five Below to new communities. The balance between new store growth and double-digit comparable sales growth for the past five quarters is a testament to our operating flywheel gaining momentum.
The company opened 52 net new stores during the quarter, for a total of 2,022 stores in 46 states. It expects to open a total of 150 stores for the full fiscal year.
Five Below now expects fiscal 2026 net sales of $5.63 billion to $5.71 billion, up from its previous forecast of $5.40 billion to $5.48 billion. It raised its adjusted net income forecast to $546 million to $572 million, from $482 million to $504 million, with adjusted diluted earnings per share expected between $9.83 to $10.31, versus $8.65 to $9.05 previously.
