For the second quarter ended Aug. 1, Five Below Inc. (FIVE) reported sales increased by 22.9% to $1.26 billion from $1.03 billion in the second quarter of fiscal 2025. Same-store sales increased by 14.1%, highlights Doug Gerlach, editor of SmallCap Informer.
The retailer opened 52 net new stores and ended the quarter with 2,022 stores in 46 states, up 8.8% from the end of Q2 2025. Earnings per share were $3.99, compared to 77 cents in the second quarter of fiscal 2025. Adjusted EPS were $1.68, compared to 81 cents in the same quarter last year.
Five Below Inc. (FIVE)
CEO Winnie Park said: “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.”
For the third quarter, Five Below management expects sales of $1.21 billion to $1.23 billion and adjusted EPS of $1.01 to $1.13, based on adding 40 net new stores. Same-store sales growth is pegged at 8% to 10%.
For the full 2026 fiscal year, guidance was increased to $5.63 billion to $5.71 billion and adjusted EPS of $12.10 to $12.58, with 150 net new stores in the works. Prior guidance was considerably lower, projecting sales of $5.4 billion to $5.48 billion and adjusted EPS of $8.62 to $9.02.
Recommended Action: Buy FIVE.
