Track market-moving stories before they get noisy

Is it better to bet on a digital marketplace for unique gifts or a rapidly expanding physical discounter? Both Etsy (ETSY +1.13%) and Five Below (FIVE +0.26%) seek discretionary consumer spending.

Etsy provides a global platform for creative entrepreneurs, while Five Below focuses on high-energy, value-priced physical retail for teens. Investors compare them because both represent distinct ways to capture growth among retail stocks as shopping habits evolve.

The case for EtsyEtsy operates a digital platform connecting nearly 87 million buyers with creative sellers. In its latest annual report, filed for the fiscal year ended Dec. 31, 2025, the company highlighted its focus on unique and vintage goods. It maintains a strategic partnership with Payoneer to facilitate global payment processing through 2029.

In FY 2025, revenue reached nearly $2.9 billion, representing a 2.7% increase over the previous year. The company reported a net income of approximately $163.0 million, showing a net margin of roughly 5.7%. While growth has moderated recently, the platform continues to attract millions of active sellers and buyers globally.

As of its December 2025 balance sheet, the debt-to-equity ratio is -2.8x, indicating that total liabilities exceed shareholders' equity. The current ratio, which measures short-term liquidity, is roughly 1.4x, while free cash flow reached nearly $638.8 million. Note that stock-based compensation accounted for roughly 35.3% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.

The case for Five BelowFive Below is a value-oriented retailer that targets kids, teens, and families with trend-right products. It operates over 1,900 stores across 46 states and organizes its merchandise into distinct product worlds, such as candy, style, and tech. The company uses its physical footprint and mobile app to reach a broad demographic seeking affordable gifts and hobby items.

In FY 2025, revenue reached nearly $4.8 billion, a significant 22.9% increase compared to the prior year. Net income for the period was close to $358.6 million, resulting in a net margin of roughly 7.5%. This growth was primarily driven by new store openings and increased demand for its value-priced assortments.

Based on its January 2026 balance sheet, the company has a debt-to-equity ratio of approximately 0.9x. Its current ratio, which compares short-term assets to liabilities, is 2.0x, and free cash flow for the period was nearly $411.7 million. These figures indicate a stable capital structure as the company continues to invest in its store growth strategy.

Risk profile comparisonEtsy faces intense competition in the e-commerce sector from major players like Amazon (AMZN +0.57%), eBay (EBAY +1.63%), and Pinterest (PINS +1.59%). It also manages risks related to content liability and reliance on third-party cloud providers such as Alphabet. Tariffs and shipping disruptions also pose potential threats to its international trade model and its large base of active sellers.

Five Below faces inventory management challenges, including rising shrinkage rates. The company is currently involved in federal class action litigation regarding past growth and inventory statements. Additionally, it remains vulnerable to supply chain disruptions and inflationary pressures that could impact its value-pricing strategy if sourcing costs rise significantly or shipping delays occur.

Valuation comparisonFive Below offers a lower Forward P/E and P/S ratio, which compares price to sales over the past twelve months. This makes it the cheaper option.

MetricEtsyFive BelowForward P/E26.8x21.7xP/S ratio2.9x2.3xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

When comparing Etsy and Five Below, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.

To start, there's growth. Over the last five years, Five Below has averaged quarterly revenue growth of 15.9%, while Etsy has averaged 5.4%. What's more, in their most recent quarters, this gap was even wider. Five Below recorded 22.8% revenue growth, well above its average, while Etsy's growth was 6.2%, which is only slightly above its five-year average.

Another factor to consider is each company's profitability. Here we'll consider operating margin, and on this front, Etsy has a lead. Etsy has recorded a five-year average operating margin of 15.5%, while Five Below's average is 10.7%. However, in recent quarters, this difference has tightened, with Five Below's profitability surging to 14.8%, within striking distance of Etsy's 16.1%.

Last, there's valuation. Since both companies have been consistently profitable, we can examine their respective price-to-earnings (P/E) multiples. Five Below's current P/E multiple is 20x, while Etsy's is 52x. That gives Five Below a clear edge in the category.

All in all, both of these consumer discretionary stocks have investment appeal. However, some investors may choose Five Below over Etsy in a hypothetical head-to-head matchup, given Five Below's more affordable valuation and higher growth prospects.

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Five Below (FIVE - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Five Below is one of 183 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Five Below is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for FIVE's full-year earnings has moved 16.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that FIVE has returned about 11.4% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have lost about 1.9% on average. This means that Five Below is performing better than its sector in terms of year-to-date returns.

Another stock in the Retail-Wholesale sector, Brinker International (EAT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 32.5%.

In Brinker International's case, the consensus EPS estimate for the current year increased 5.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Five Below belongs to the Retail - Miscellaneous industry, a group that includes 14 individual stocks and currently sits at #70 in the Zacks Industry Rank. Stocks in this group have lost about 18.5% so far this year, so FIVE is performing better this group in terms of year-to-date returns.

On the other hand, Brinker International belongs to the Retail - Restaurants industry. This 37-stock industry is currently ranked #103. The industry has moved -12.3% year to date.

Investors with an interest in Retail-Wholesale stocks should continue to track Five Below and Brinker International. These stocks will be looking to continue their solid performance.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, October 7:

Petco Health and Wellness Company, Inc. (WOOF - Free Report) : This pet specialty retailer carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.3% over the last 60 days.

Petco Health has a PEG ratio of 0.82 compared with 2.10 for the industry. The company possesses a Growth Score of A.

Five Below, Inc. (FIVE - Free Report) : This specialty value retailer from the United States carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days.

Five Below has a PEG ratio of 0.83 compared with 2.10 for the industry. The company possesses a Growth Score of B.

Oscar Health, Inc. (OSCR - Free Report) : This healthcare technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.1% over the last 60 days.

Oscar Health has a PEG ratio of 0.36 compared with 0.88 for the industry. The company possesses a Growth Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Growth score and how it is calculated here.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Five Below (FIVE - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this discount retailer is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Five Below is 11.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 57.6% this year, crushing the industry average, which calls for EPS growth of 8.5%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Five Below is 26.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 6.9%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 24.5% over the past 3-5 years versus the industry average of 8.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Five Below. The Zacks Consensus Estimate for the current year has surged 14.4% over the past month.

Bottom LineFive Below has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Five Below is a potential outperformer and a solid choice for growth investors.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, September 29th:

Star Bulk Carriers (SBLK - Free Report) : This global shipping company, which provides worldwide seaborne transportation solutions in the dry bulk sector, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.3% over the last 60 days.

Star Bulk Carriers’ shares gained 20.8% over the last three month compared with the S&P 500’s gain of 2.7%. The company possesses a Momentum Score of A.

Five Below (FIVE - Free Report) : This Pennsylvania-based specialty value retailer, which offers trend-right merchandise priced mostly at $5 and below, with a select range priced above $5, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days.

Five Below’s shares gained 26.8% over the last three month compared with the S&P 500’s gain of 2.7%. The company possesses a Momentum Score of A.

Robinhood Markets (HOOD - Free Report) : This financial services company, which enables customers to trade equities, options, event contracts and futures, as well as buy, sell and transfer cryptocurrencies, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.

Robinhood Markets' shares gained 16.1% over the last three month compared with the S&P 500’s gain of 2.7%. The company possesses a Momentum Score of A.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

 | Source: Five Below, Inc.

PHILADELPHIA, PA, Sept. 23, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE), the trend-right, extreme-value brand for the kid and the kid in all of us, today announced the appointment of Scott Settersten, former Chief Financial Officer of Ulta Beauty, to its Board of Directors and the Audit Committee of its Board of Directors, effective September 21, 2026. In connection with Mr. Settersten’s appointment, Five Below’s Board increased to ten directors.

“Scott is a highly respected finance leader with a proven track record of scaling a high-growth retail business while maintaining strong financial discipline,” said Mike Devine, Chair of the Five Below Board. “His deep financial and operational expertise will be a valuable addition to our Board, and we look forward to drawing on Scott’s experience as we execute on our significant growth opportunity and drive long-term value for our stakeholders.”

Mr. Settersten served as the Chief Financial Officer of Ulta Beauty from 2012 until his retirement in March 2024, where he oversaw the company’s finance, accounting, tax, treasury, procurement, internal audit, investor relations, loss prevention and real estate teams. Mr. Settersten also spent 15 years with PricewaterhouseCoopers LLP as a certified public accountant in the assurance and risk management practices. In addition, he served as a director and member of the audit committee of Kimball International from July 2020 to June 2023.

“I am honored to join the Five Below Board at such an exciting time in the company's evolution,” said Mr. Settersten. “Five Below is one of the most compelling growth stories in retail with a unique value proposition and target customer,” Mr. Settersten continued. “I look forward to working with the Board and leadership team to build on the company’s momentum and execute its long-term growth strategy to create lasting value for shareholders.”

About Five Below:
Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to “let go & have fun” in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 2,000 stores in 47 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram, Facebook, and YouTube.

Investor Contact:
Five Below, Inc.
Christiane Pelz, Vice President, Investor Relations
[email protected]

Five Below (NASDAQ:FIVE) executives said the retailer’s recent performance reflects a customer-focused strategy centered on product assortment, simplified pricing, marketing and store experience improvements, while management sees continued runway for comparable-sales and unit growth.

Chief Executive Officer Winnie Park said the company’s turnaround has moved quickly, driven by a “maniacal focus on the customer,” particularly Gen Alpha, Gen Z and millennial parents. She said Five Below has shifted its merchandising approach toward complete assortments and curated product stories rather than relying on individual key items.

Park also pointed to expanded social-media engagement, the company’s first chief marketing officer and early efforts to capture customer records as tools to drive traffic and repeat visits. She said the retailer is still in the early stages of developing direct customer relationships, noting it does not yet have a CRM system or marketing leadership dedicated to that initiative. Pricing and Product Strategy The company has simplified much of its pricing, with $1 through $5 price points accounting for about 80% of the assortment, Park said. At the same time, Five Below has incorporated Five Beyond products throughout the store rather than isolating them in a separate area.

Park said tariffs prompted the retailer to reassess the value proposition of individual products. While the company can offer substantial value at its traditional price points, it has also found opportunities at $7, $10 and $15, as well as higher Five Beyond price points of $20 and $25.

“If there’s an animatronic ghoul that is 6 ft tall and it’s $60 elsewhere, how can we get that at $25, $30 at Five Below?” Park said, describing the company’s approach to relative value.

She said Five Below has seen a strong response to merchandise priced above $5 when the value proposition is clear. The company expects its average unit retail in the second half to be broadly consistent year over year, though holiday sales typically carry a higher average unit retail because of the mix of items purchased.

Store Growth and Format Changes Chief Financial Officer Dan Sullivan said Five Below sees a U.S. store opportunity of more than 3,500 locations. The company had just under 2,000 stores when he joined, and he said his confidence in the longer-term opportunity increased after reviewing the real estate pipeline and site-selection process.

Sullivan said the retailer has increased rigor around site selection, grand openings and economic thresholds, prioritizing location quality over opening volume. That approach slowed unit growth, but he said new-store productivity in 2025 and 2026 has been in the upper 90% range.

The company opened nine stores in the Pacific Northwest last year, a market that had been white space for Five Below. Sullivan said each opening would have set a grand-opening record had the locations not opened at the same time. Management continues to view high-single-digit unit growth, roughly 7% to 9%, as the appropriate long-term pace.

Five Below is also changing store layouts. Park said the company is removing walls that previously enclosed the Five Beyond section at the back of stores, allowing customers to move more freely through the sales floor. The company is moving technology merchandise forward in stores because it is a trip driver and may help reduce shrink, while creating a “World of Play” in the back of the store.

New stores are increasingly being built with the play category at the back, and Park said the company is seeing “tremendous results.” Sullivan said the changes require modest capital of about $40,000 to $45,000 per store. The company plans to combine remodel work with other scheduled store activity where possible, pausing much of the work during the holiday season and resuming it in January.

Growth, Margins and Capital Allocation Park said Five Below has delivered five consecutive quarters of double-digit comparable sales growth. She attributed the performance to newness in the assortment, trend responsiveness, product storytelling and expanded marketing capabilities.

Sullivan said the company still views itself as a high-growth retailer, supported by both comparable sales and store openings. While he did not provide a new formal long-term financial algorithm, he said management operates the business with the expectation that profit growth can outpace top-line growth through a combination of investment, leverage and productivity.

Five Below’s capital allocation priority remains investment in growth, Sullivan said. More than 75% of the company’s capital deployment this year is expected to support growth initiatives, including new stores, store format changes, supply chain investments and distribution-center capacity.

The company recently announced a new $600 million share repurchase authorization after completing the remaining approximately $60 million under its prior authorization. Sullivan said the authorization reflects healthy liquidity, a stronger profit profile over the past 18 months and the board’s confidence in the business, rather than a shift away from growth investment.

Costs and Consumer Demand For the second half, Sullivan said lower Section 301 tariff rates than previously contemplated are expected to provide a slight tailwind versus the company’s prior outlook. However, he said that benefit is largely offset by higher fuel costs, particularly inland trucking costs. Ocean freight contracts are locked in and have not shown significant pressure, he said.

Park said the retailer has seen growth across socioeconomic and demographic groups, geographies and merchandise “worlds.” She said Five Below’s value offering, with entry-level price points beginning at $1, supports confidence in second-half consumer demand.

Toys have been a particularly healthy category, according to Park. She said social trends involving squishy products, collectibles and blind boxes have generated engagement across age groups, while nostalgia has helped revive demand for brands such as L.O.L. Surprise! and Littlest Pet Shop.

Looking ahead, Park said Five Below is taking a measured approach to artificial intelligence, viewing it as a potential tool to address technology debt and connect more complex systems. “We always talk about fewer, bigger, better bets,” she said.

About Five Below (NASDAQ:FIVE) Five Below, Inc is a specialty value retailer that sells merchandise primarily designed for children, teens and preteens. Its product assortment generally includes toys, games, fashion accessories, room décor, sports equipment, technology accessories, party supplies, seasonal items and candy. The company operates under a “five and beyond” pricing concept, offering most products at affordable price points while also selling selected higher-priced items.

Founded in 2002 by David Schlessinger and Tom Vellios, Five Below has expanded from its original store base into a nationwide retail chain.

Key Takeaways FIVE, DLTR, KSS, TGT and TJX are highlighted as retail sales grew 1.2% in August.FIVE's expected earnings growth is 57.6%, with estimates up 15.2% over 60 days.TGT has invested in technology, websites, apps and its supply chain to compete with e-commerce. Inflation climbed in August and remains a major concern, which led the Federal Reserve to finally hike interest rates for the first time in three years. However, despite continued inflationary pressures, the retail sector has performed well.

Consumers continued to spend aggressively, which saw retail sales grow at a solid pace in August. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc. (FIVE - Free Report) , Dollar Tree, Inc. (DLTR - Free Report) , Kohl's Corporation (KSS - Free Report) , Target Corporation (TGT - Free Report) and The TJX Companies, Inc. (TJX - Free Report) .

Retail Sales GrowRetail sales grew 1.2% in August, recording the largest increase since March after declining a revised 0.5% in July, the Commerce Department reported last week. The decline in July was the first in nine months, indicating the robust growth for the sector this year.

The jump in August retail sales also surpassed analysts’ expectations of a rise of 0.8%. Year over year, retail sales grew 0.6%. Although higher gasoline prices were partially responsible for the rise in retail sales, consumers also continued to spend aggressively on a range of goods.

Consumers have continued to spend at a solid pace despite high inflation as producer and consumer prices jumped in August. Households have been saving less and spending more. The rise in sales in August was to a large extent led by a 2.6% jump in receipts at non-store retailers.

Sales at vehicles and parts dealers climbed 0.6%. Also, back-to-school purchases boosted receipts at clothing stores by 0.7%. Sales at food services and drinking place, the only service category in the retail sales report, jumped a solid 1.2%. Retail sales excluding automobiles, gasoline, building materials and food services rose 1.4% in August, the largest increase since September 2024, after declining 0.4% in July. 

The retail sales report comes just days after the Federal Reserve hiked interest rates by a quarter percentage point in its bid to combat sky-high inflation.

However, the rise in retail sales shows the economy’s resilience. Surging oil prices have played a major role in pushing inflation higher, as tensions continue in the Middle East. However, inflation is likely to ease once oil prices stabilize. This is likely to boost the retail sector in the near term.

5 Retail Stocks With UpsideFive Below, IncFive Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.

Five Below’s expected earnings growth rate for the current year is 57.6%. The Zacks Consensus Estimate for current-year earnings has improved 15.2% over the past 60 days. FIVE presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar TreeDollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR’s stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.

Dollar Tree’s expected earnings growth rate for the current year is 34.6%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 10.6% over the past 60 days. DLTR has a Zacks Rank #2 (Buy).

Kohl's CorporationKohl's Corporation offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. KSS targets value-oriented, moderate-income households and combines national brands with proprietary and exclusive brands.

Kohl's Corporation’s expected earnings growth rate for the current year is 24.7%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 48.5% over the past 60 days. KSS has a Zacks Rank #1.

Target CorporationTarget Corporation has evolved from being a pure brick-and-mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.

Target Corporation’s expected earnings growth rate for the current year is 37.8%. The Zacks Consensus Estimate for current-year earnings has improved 25.1% over the past 60 days. Target currently carries a Zacks Rank #2.

The TJX CompaniesThe TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.

The TJX Companies’ expected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. TJX presently has a Zacks Rank #2.

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Stock to Watch: Five Below (FIVE - Free Report) Five Below, Inc. is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The chain targets pre-teens, teens and value-focused families with an edited assortment that includes certain brands and licensed merchandise.

FIVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FIVE has a Growth Style Score of B, forecasting year-over-year earnings growth of 57.6% for the current fiscal year.

Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $1.39 to $10.51 per share. FIVE also boasts an average earnings surprise of +68.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIVE should be on investors' short list.

Key Takeaways Five Below raised fiscal 2026 sales guidance to $5.63-$5.71B and EPS guidance to $9.83-$10.31.Q2 comps rose 14.1% as transactions increased 13.6%, keeping traffic at the center of growth.Holiday newness and margin gains support the outlook, while costs and inventory remain execution risks. Five Below, Inc. (FIVE - Free Report) raised its fiscal 2026 outlook after second-quarter results exceeded expectations, making the guidance revision the key near-term event for investors. Higher traffic, stronger margins and product newness have lifted the earnings trajectory.

The revised forecast also raises the execution bar. Delivering the new targets will depend on sustained transaction growth, merchandise-margin gains and disciplined inventory management as Five Below moves into the holiday period.

FIVE's Q2 Beat Sets Up the Raised OutlookAdjusted earnings were $1.68 per share in the fiscal second quarter, topping the Zacks Consensus Estimate of $1.34. Net sales rose 22.9% year over year to $1.26 billion, above the consensus estimate of $1.192 billion.

Comparable sales increased 14.1%, marking a fifth consecutive quarter of double-digit growth. Broad gains across customer groups, geographies and product categories gave management a stronger operating base for raising full-year expectations.

Five Below Lifts Full-Year Sales and EPS GuidanceFiscal 2026 net sales guidance increased to $5.63-$5.71 billion from $5.40-$5.48 billion. Expected comparable-sales growth moved to 10%-12% from 6%-8%.

Adjusted earnings per share guidance rose to $9.83-$10.31 from $8.65-$9.05. Adjusted operating margin is expected to increase about 250 basis points year over year to roughly 12.5% at the midpoint, signaling stronger full-year profitability.

FIVE's Traffic and Margins Power the UpgradeTransactions increased 13.6% in the second quarter, while average transaction value rose 0.4%. Traffic remained the primary comparable-sales driver, consistent with management's expectation that transaction growth will continue to carry much of the demand improvement.

The raised outlook also reflects merchandise-margin gains, fixed-cost leverage and lower tariff costs. Five Below still plans to fund higher marketing investment, so the improved profit outlook is not based solely on expense restraint.

Five Below Enters the Holidays With More NewnessFive Below expects a fuller Halloween and holiday assortment, including merchandise it elected not to carry last year because of tariff-related constraints. That gives the company more seasonal product to support traffic during its important fourth quarter.

Early tests of the Five Beyond reconfiguration generated positive customer, crew and productivity responses, prompting a broader rollout. The company is also emphasizing trend-driven product stories and faster speed to market to support repeat visits and customer engagement.

FIVE's Outlook Still Carries Cost and Execution RisksThe guidance assumes tariff rates currently in place. Higher outbound transportation fuel costs and a tougher shrink comparison are expected to offset part of the third-quarter gross-margin benefit from lower tariffs. Inventory ended the second quarter at $941.2 million, up 17.7% year over year.

Dollar General Corporation (DG - Free Report) reported 3.5% same-store sales growth in its fiscal second quarter, including a 2% increase in customer traffic. Dollar Tree, Inc. (DLTR - Free Report) reported 3.7% comparable-store net sales growth in its fiscal second quarter. Those results show other value retailers are also generating traffic and sales growth.

FIVE's Strong Earnings Signal Meets Mixed Style ScoresThe raised outlook strengthens Five Below's near-term earnings profile, but the company still needs sustained traffic, margin execution and effective holiday merchandising to deliver against the higher forecast. Cost volatility or slower inventory turns could complicate delivery.

FIVE currently carries a Zacks Rank #1 (Strong Buy), with a Growth Score of B and VGM Score of B. Those readings support its earnings-revision and growth profile. The Value Score of D and Momentum Score of C are less favorable, providing context for investors assessing how much of the improved operating outlook may already be reflected in expectations. You can see the complete list of today’s Zacks #1 Rank stocks here.

Michael F. Devine III, Director of Five Below, Inc. (FIVE +0.52%), sold 4,250 shares of common stock on Sept. 4, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$1.1 millionShares sold4,250Post-transaction shares (directly held)12,953Post-transaction value$3.27 millionTransaction value based on SEC Form 4 weighted average sale price ($250.61); post-transaction value based on Sept. 4, 2026 market close ($252.20).

Key questionsWhat was the execution context for this disposal?
The shares were sold in multiple transactions at prices ranging from $251.18 to $251.46, resulting in a weighted average execution price of $250.61 per share.How does this impact the insider's total equity position?
After selling 4,250 shares, Michael F. Devine III holds 12,953 shares directly, representing a 0.0234% ownership interest in the firm as of the latest reporting.What is the scale of the company's current financial operations?
Headquartered in Philadelphia, the specialty discount retailer reported trailing-twelve-month revenue of $5.3 billion and net income of $619.2 million, supported by a workforce of 16,200 employees.What is the current market valuation of the remaining stake?
The 12,953 shares held directly carry a market value of ~$3.2 million based on the $247.12 price as of the Sept. 9, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-09-09)$247.12Market Capitalization$14.0 billionRevenue (TTM)$5.3 billionNet Income (TTM)$619.2 millionCompany SnapshotFive Below operates a specialty discount retail platform offering an extensive inventory of personal accessories, apparel, beauty products, and home goods at price points below $5, generating revenue primarily through in-store and omnichannel retail sales.The company's business model centers on high-volume, value-oriented retail operations with a focus on trend-driven merchandise curation and rapid inventory turnover to drive profitability and customer acquisition.Five Below primarily targets value-conscious consumers, particularly younger demographics and families seeking affordable fashion, lifestyle, and home products across its United States store footprint.Five Below, Inc. operates as a prominent specialty discount retailer with a market capitalization of $14.0 billion and TTM revenues of $5.3 billion, demonstrating significant scale within the specialty retail sector. The company's differentiated value proposition centers on curated, trend-responsive merchandise at accessible price points, enabling strong market penetration and customer loyalty. With 16,200 employees and operations across the United States, Five Below has established a competitive position through operational efficiency and inventory management discipline within the consumer discretionary retail landscape.

What this transaction means for investorsInvestors should always understand that insider transactions can be complicated. Oftentimes, insiders sell as the result of complicated estate planning strategies or due to tax implications. Therefore, retail investors are best served by returning to fundamentals, which provide a true gauge of how a company is operating. With that in mind, let's have a look at Five Below (FIVE).

To start, we should review Five Below's recent performance relative to the S&P 500. Since 2021, shares of Five Below have underperformed the benchmark index. FIVE has generated a total return of 27%, equating to a compound annual growth rate (CAGR) of 4.9%. The S&P 500, meanwhile, has delivered a total return of 80%, with a CAGR of 12.5%. Yet, Five Below has performed better over the last year, generating a total return of 59% versus 16% for the S&P 500.

Premium Feature

Moneyball Superscore

75/100

Today's Change

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As for its core fundamentals, most look very solid. Take revenue, for instance. It has soared from $2.7 billion in 2021 to over $5.3 billion now. Net income has also moved significantly higher. It stood at around $250 million as recently as 2025, but has exploded to over $615 million today. Finally, and perhaps most impressively, operating margin stands at an all-time high of 14.75%, up from around 8% in 2025.

In short, Five Below is a company firing on all cylinders right now. Valuation remains reasonable with a price-to-sales (P/S) ratio of 2.5x, which is below the stock's lifetime average of 3.3x. Therefore, investors seeking a retail stock may wish to consider FIVE.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Five Below (FIVE - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this discount retailer a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Five Below is 11.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 55.7% this year, crushing the industry average, which calls for EPS growth of 8.5%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Five Below is 26.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 6.9%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 24.5% over the past 3-5 years versus the industry average of 8.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Five Below have been revising upward. The Zacks Consensus Estimate for the current year has surged 15.8% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Five Below a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Five Below well for outperformance, so growth investors may want to bet on it.

Five Below, Inc. (FIVE) Goldman Sachs Global Consumer and Retail Conference September 15, 2026 9:15 AM EDT

Company Participants

Winifred Park - President, CEO & Director
Daniel Sullivan - CFO & Treasurer

Conference Call Participants

Katharine McShane - Goldman Sachs Group, Inc., Research Division

Presentation

Katharine McShane
Goldman Sachs Group, Inc., Research Division

Good morning, everyone. Thanks for joining us. It's my pleasure to introduce Five Below and to moderate this fireside chat. Today, we have with us Winnie Park, Chief Executive Officer of Five Below; and Dan Sullivan, Chief Financial Officer of Five Below. Thank you so much for joining us today.

Winifred Park
President, CEO & Director

Thanks for having us.

Question-and-Answer Session

Katharine McShane
Goldman Sachs Group, Inc., Research Division

There's so much to talk about. And so this time, it's going to go very fast. But in the past 2 years, Five Below has undergone quite a bit of change, especially starting with both your new roles. And so Winnie, I wondered if you could maybe now that it's been a year, what has been your biggest learnings about the business? How has your perspective evolved compared to when you first stepped into the role?

Winifred Park
President, CEO & Director

Thank you so much, Kate. And we're excited to be here and talk a little bit about the Five Below story, at least for the past 2 years.

I think the biggest surprise I've had in the business is how quickly we are able to turn the business around. And if anything, I think it's a testament to the strategy that we put in place, and it's really great to see customers respond to that strategy, but really started with, one, a maniacal focus on the customer. And for us, that meant going back to kids and zoning in on Gen Alpha, really understanding the

California State Teachers Retirement System lifted its position in shares of Five Below, Inc. (NASDAQ:FIVE – Free Report) by 17,961.6% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 11,524,359 shares of the specialty retailer’s stock after buying an additional 11,460,553 shares during the period. California State Teachers Retirement System owned approximately 20.84% of Five Below worth $2,071,965,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Five Below during the second quarter worth about $31,000. Advisory Services Network LLC purchased a new stake in shares of Five Below during the 3rd quarter worth about $32,000. Bayban purchased a new stake in shares of Five Below during the 4th quarter worth about $34,000. Elevation Wealth Partners LLC increased its position in Five Below by 966.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 192 shares of the specialty retailer’s stock worth $35,000 after purchasing an additional 174 shares in the last quarter. Finally, iSAM Funds UK Ltd acquired a new stake in Five Below during the 3rd quarter worth approximately $40,000.

Insiders Place Their Bets In other news, COO Kenneth R. Bull sold 10,510 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $248.06, for a total value of $2,607,110.60. Following the sale, the chief operating officer owned 75,064 shares of the company’s stock, valued at approximately $18,620,375.84. The trade was a 12.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Maureen Marie Gellerman sold 1,610 shares of the company’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $248.94, for a total value of $400,793.40. Following the completion of the sale, the insider owned 8,804 shares of the company’s stock, valued at approximately $2,191,667.76. This trade represents a 15.46% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.96% of the company’s stock.

Five Below Stock Up 1.4% FIVE stock opened at $244.60 on Friday. The company has a 50-day simple moving average of $224.73 and a 200 day simple moving average of $219.01. The company has a market capitalization of $13.47 billion, a P/E ratio of 21.96, a PEG ratio of 0.93 and a beta of 0.99. Five Below, Inc. has a fifty-two week low of $137.77 and a fifty-two week high of $263.88. Five Below (NASDAQ:FIVE – Get Free Report) last released its earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 EPS for the quarter, beating the consensus estimate of $1.40 by $0.28. The firm had revenue of $1.26 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Five Below had a net margin of 11.65% and a return on equity of 22.13%. Five Below’s quarterly revenue was up 22.9% on a year-over-year basis. During the same quarter last year, the company earned $0.81 EPS. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS. Equities analysts anticipate that Five Below, Inc. will post 10.56 EPS for the current year.

Wall Street Analysts Forecast Growth A number of research analysts have weighed in on FIVE shares. Cantor Fitzgerald cut shares of Five Below to a “neutral” rating in a research report on Thursday, August 13th. Truist Financial boosted their price objective on Five Below from $273.00 to $297.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. The Goldman Sachs Group upped their price target on Five Below from $257.00 to $306.00 and gave the stock a “buy” rating in a report on Friday, September 4th. HSBC raised Five Below to a “hold” rating in a report on Tuesday, July 21st. Finally, BNP Paribas Exane lowered shares of Five Below from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $300.70.

View Our Latest Stock Report on Five Below

Key Stories Impacting Five Below Here are the key news stories impacting Five Below this week:

Positive Sentiment: Strong operating momentum: Five Below reported quarterly revenue of $1.26 billion, up 22.9% year over year, while EPS of $1.68 exceeded consensus by $0.28. Comparable-store sales rose 14.1%, marking five consecutive quarters of double-digit sales growth. Five Below Faces Its Toughest Test Ahead After 5 Consecutive Quarters of Double-Digit Sales Growth Positive Sentiment: Analyst support: Truist Financial raised its price target to $297, while JPMorgan increased its target to $368 and maintained an overweight rating. The broader analyst consensus is “Moderate Buy,” with an average target of $300.70. Jim Cramer also characterized FIVE as a “Buy, Buy, Buy.” Brokerages Set Five Below Price Target Positive Sentiment: Consumer value appeal: Media attention around inexpensive products, including chocolate and home-organization merchandise, reinforces Five Below’s value-focused positioning and may support customer traffic. Neutral Sentiment: Short-interest data is inconclusive: A report lists zero shares sold short and a zero-day days-to-cover ratio, suggesting the data is incomplete or unreliable rather than indicating a meaningful short squeeze setup. Negative Sentiment: Insider selling raises caution: COO Kenneth Bull sold approximately $2.6 million of stock, and director Maureen Marie Gellerman sold about $401,000. Insiders have made 22 sales versus one purchase over the past six months, which could weigh on sentiment even though both executives retain substantial holdings. SEC insider filing Negative Sentiment: Execution risk and valuation: After its strong run, Five Below trades near its 12-month high, increasing expectations for continued sales growth. The company also faces a tougher comparison period ahead, creating risk if traffic, margins or guidance soften. Five Below Profile (Free Report)

Five Below, Inc is a specialty value retailer that sells merchandise primarily designed for children, teens and preteens. Its product assortment generally includes toys, games, fashion accessories, room décor, sports equipment, technology accessories, party supplies, seasonal items and candy. The company operates under a “five and beyond” pricing concept, offering most products at affordable price points while also selling selected higher-priced items.

Founded in 2002 by David Schlessinger and Tom Vellios, Five Below has expanded from its original store base into a nationwide retail chain.

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Five Below, Inc. (FIVE) Barclays 19th Annual Global Consumer Staples Conference September 9, 2026 10:30 AM EDT

Company Participants

Daniel Sullivan - CFO & Treasurer

Conference Call Participants

Seth Sigman - Barclays Bank PLC, Research Division

Presentation

Seth Sigman
Barclays Bank PLC, Research Division

We're going to get started. Good morning, everyone. My name is Seth Sigman. I am the U.S. hardline broadline food retail analyst at Barclays. My pleasure to have the Five Below management team at our conference this year. Dan Sullivan, CFO. Also in the audience, we have Christiane Pelz, VP IR. Thank you, guys, for being here. Appreciate it.

Question-and-Answer Session

Seth Sigman
Barclays Bank PLC, Research Division

Five Below has delivered incredible top line growth over the last 18 months, double-digit comps in 2025, record start to '26. On the second quarter earnings, you also raised guidance again for 2026. So there's a lot happening here. It seems to be a very different growth story in the last 18 months. Something is really changing here.

So Dan, I'd love to hear from your perspective, key top line drivers, what's driving the growth right now? What is new? What's different in the business? And ultimately, what do you think is having the most impact on these strong results?

Daniel Sullivan
CFO & Treasurer

Yes. Good morning, Seth. Good to see you. Good morning, everyone. Thank you for spending the time with us. Look, we've got a lot of great news and a lot of great things to share and talk about. I think for me, if I sort of unpack this, what you're seeing in the business right now is a very clear strategy that was put in place by Winnie Park, our CEO, when she joined just under 2 years ago, you're seeing proof points that, that strategy is resonating quite well.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Five Below (FIVE - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Five Below currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if FIVE is a promising momentum pick, let's examine some Momentum Style elements to see if this discount retailer holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For FIVE, shares are up 4.26% over the past week while the Zacks Retail - Miscellaneous industry is up 0.78% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.16% compares favorably with the industry's 0.08% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Five Below have increased 30.05% over the past quarter, and have gained 66.68% in the last year. On the other hand, the S&P 500 has only moved 4.72% and 20.24%, respectively.

Investors should also pay attention to FIVE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. FIVE is currently averaging 1,146,295 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with FIVE.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost FIVE's consensus estimate, increasing from $9.05 to $9.95 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that FIVE is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Five Below on your short list.

AlphaGrep UK Ltd purchased a new stake in Five Below, Inc. (NASDAQ:FIVE – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 6,589 shares of the specialty retailer’s stock, valued at approximately $1,185,000. Five Below accounts for approximately 0.4% of AlphaGrep UK Ltd’s holdings, making the stock its 24th largest position.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. TD Waterhouse Canada Inc. acquired a new stake in shares of Five Below during the second quarter worth about $64,000. AXQ Capital LP acquired a new stake in Five Below in the second quarter valued at $622,000. Nykredit A S purchased a new stake in Five Below during the 2nd quarter worth about $378,000. Proficio Capital Partners LLC acquired a new position in shares of Five Below during the 2nd quarter worth about $702,000. Finally, Quantitative Investment Management LLC acquired a new position in shares of Five Below during the 2nd quarter worth about $3,897,000.

Wall Street Analyst Weigh In A number of analysts have weighed in on FIVE shares. Raymond James Financial raised shares of Five Below to an “outperform” rating in a report on Tuesday, July 21st. Evercore set a $260.00 target price on Five Below in a research report on Thursday. JPMorgan Chase & Co. upped their price target on shares of Five Below from $325.00 to $368.00 and gave the company an “overweight” rating in a research report on Thursday. Mizuho set a $295.00 target price on shares of Five Below in a research note on Thursday. Finally, Wall Street Zen raised shares of Five Below from a “hold” rating to a “buy” rating in a report on Sunday, August 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to MarketBeat, Five Below has a consensus rating of “Moderate Buy” and an average price target of $300.70.

View Our Latest Report on FIVE Five Below Stock Performance Shares of NASDAQ:FIVE opened at $252.20 on Friday. Five Below, Inc. has a one year low of $137.77 and a one year high of $263.88. The company has a market capitalization of $13.94 billion, a PE ratio of 22.64, a price-to-earnings-growth ratio of 1.17 and a beta of 0.99. The stock has a fifty day moving average of $218.05 and a 200-day moving average of $217.82.

Five Below (NASDAQ:FIVE – Get Free Report) last issued its earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.40 by $0.28. Five Below had a net margin of 11.65% and a return on equity of 22.13%. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter last year, the business posted $0.81 EPS. The company’s revenue for the quarter was up 22.9% on a year-over-year basis. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS. As a group, research analysts forecast that Five Below, Inc. will post 9.54 EPS for the current fiscal year.

Key Stories Impacting Five Below Here are the key news stories impacting Five Below this week:

Positive Sentiment: Five Below reported second-quarter earnings of $1.68 per share, well above the $1.34–$1.40 analyst range, while revenue rose 22.9% year over year to approximately $1.26 billion. Results were supported by strong traffic, repeat visits, comparable-sales growth and demand for new, trend-oriented merchandise. Five Below Q2 Earnings and Revenues Top Estimates Positive Sentiment: Management raised fiscal 2026 guidance to $5.63 billion–$5.71 billion in revenue and $9.83–$10.31 in EPS. Third-quarter EPS guidance of $1.01–$1.13 also exceeds the prior consensus estimate, signaling continued operating momentum. Five Below Q2 Earnings Call Centers on Traffic and Raised Outlook Positive Sentiment: The company authorized a $600 million share-repurchase program, which could support per-share earnings and signal confidence in future cash generation. Five Below Unveils $600 Million Share Repurchase Plan Positive Sentiment: Analysts raised targets following the earnings beat: Goldman Sachs moved to $306 with a Buy rating, JPMorgan to $368 with an Overweight rating, Truist to $297 with a Buy rating and Morgan Stanley to $300 while maintaining Equal Weight. These revisions reinforce improving expectations for growth and margins. Neutral Sentiment: Jim Cramer highlighted that comparable-sales growth is decelerating, although it remains strong. Consensus targets imply further upside, but target-price metrics alone are not reliable predictors of returns. Negative Sentiment: Some retail earnings point to a wider split among U.S. consumers. Five Below still faces potential tariff and margin pressures, and slowing comparable-sales growth could temper the rally if traffic or discretionary spending weakens. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy About Five Below (Free Report)

Five Below, Inc (NASDAQ:FIVE) is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.

Featured Articles Five stocks we like better than Five Below Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding FIVE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Five Below, Inc. (NASDAQ:FIVE – Free Report).

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Looking back on the latest earnings season for retail stocks, an unusual K-shaped pattern emerges: lower-income households appear to be struggling, with some value stores having a difficult time reconciling their low prices against increasingly costly inventory. At the same time, though, a handful of specialized stores, including homeowner and contractor supply chains, have had unexpected strong quarters in numerous respects.

This data helps to support the growing narrative that different groups of consumers are experiencing the economy in vastly different ways, with those with more disposable cash tending to spend freely and those without being forced to tighten belts to even more extreme degrees.

Get Walmart alerts:

The situation means that some companies—like The Home Depot Inc. NYSE: HD and Lowe's Companies Inc. NYSE: LOW—have done better than others, including Walmart NASDAQ: WMT and Five Below Inc. NASDAQ: FIVE, even while the latter have some hidden wins that suggest a more complicated consumer landscape than some may anticipate.

Home Depot Finds Resilience in Pro Demand and Smaller ProjectsHome Depot Today

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$289.10▼

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Home Depot's Q2 2026 earnings of $4.92 per share came on the back of revenue of nearly $48 billion, which was up about 6% year over year (YOY).

Both metrics were ahead of analyst predictions, fueled by comparable store sales growth of 1.7%, a notably high figure for the company.

Home improvement projects seem to be fairly robust, particularly among higher-income homeowners with more discretionary income to spend.

The company enjoyed strong demand across many of its departments, supported by its new three-hour express delivery service—this service is also one that may appeal to consumers with more disposable income who are willing to spend extra for the convenience.

To be sure, uncertainty about consumer sentiment in general, as well as concerns about housing affordability, may negatively impact some types of home improvement projects. Still, Wall Street analysts have rallied behind Home Depot stock, calling it a Moderate Buy overall and predicting about 18% in future upside.

Lowe’s Pro Growth Can’t Fully Offset Soft DIY DemandLowe's Companies Today

LOW

Lowe's Companies

$203.90 +2.00 (+0.99%)

As of 01:38 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$199.34▼

$293.062.45%

17.24

$258.53

On a macro level, Lowe's would seem to benefit from many of the same factors driving Home Depot's growth.

The company is also well-suited to providing for those big-ticket home improvement projects that some consumers are still prepared to spend large amounts of money on.

This is evidenced by Lowe's sales growth of 8.3% YOY in the latest quarter, as well as strong free cash flow and pro sales growth that reflects strong contractor demand.

The issue for Lowe's may be that its overall competitive position is weaker than Home Depot's. Management recently reduced its full-year outlook due to softer DIY demand. Comparable sales increased by just 0.2% YOY—while better than a decline, it's a much slower rate than Home Depot.

In addition, the company decided not to leverage tariff refunds to offer strong summer promotions to the same degree as some of its competitors, and performance suffered as a result.

Five Below and Walmart Show Different Sides of the Value ConsumerFive Below Today

$256.57 +16.61 (+6.92%)

As of 01:38 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$137.77▼

$263.8823.04

$296.20

Five Below faces challenges to its margins as a result of significant increases to fuel costs, and tariff benefits are disappearing fast.

Still, the company has managed to post some crucial wins in key areas: profitability was still up, with merchandise-margin gains and fixed-cost leverage as two important contributing factors.

Where Five Below really succeeded in Q2 2026, though, was in sales growth of 23% YOY, including 14% YOY improvement to comparable sales.

This may suggest that consumers are still be willing to spend on discretionary items when the price point is compelling, even as economic pressures make them more selective about larger purchases. Five Below may have cracked the code to continuing to see robust traffic and transactions, even as economic pressures mount.

Walmart Today

$107.33 -1.09 (-1.01%)

As of 01:38 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$98.88▼

$135.150.92%

38.75

$131.88

Walmart, on the other hand, disappointed investors with its latest earnings, even though it also raised its full-year guidance.

The issue may be that the company posted notably slow sales growth compared to other recent quarters. There also may be a concern that the company's results are artificially benefiting from near-term tariff refunds that are not going to last.

Still, Walmart's digital business appears to be thriving and building its margins.

Advertising remains a high-growth corner of the company's ecosystem, but it is also supported by growth in membership income, e-commerce, and more. This may be why, despite shares falling by about 2.7% year to date (YTD), analysts remain very bullish on WMT stock overall and see the stock gaining 24%.

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'Mad Money' host Jim Cramer takes a closer look at Five Below after the stock reported earnings.

Five Below, Inc. just released its Q2 earnings, and the results were impressive. The discount retailer reported comparable sales growth well above consensus estimates, while also putting out expectation-beating forward guidance. The share gains post-release add to YTD share appreciation of about 30%.

Five Below Inc (NASDAQ:FIVE) on Wednesday reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates.

Five Below reported quarterly earnings of $1.68 per share, which beat the analyst estimate of $1.38 by 21.74%, per Benzinga Pro data. Quarterly revenue came in at $1.26 billion, which beat Street estimate of $1.22 billion and was up from $1.03 billion in the same period last year.

"We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy. Our Crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop," said Winnie Park, CEO of Five Below.

Five Below raised its fiscal 2026 adjusted EPS guidance to between $9.83 and $10.31, versus the $9.23 analyst estimate, and raised its revenue outlook to between $5.63 billion and $5.71 billion, versus the $5.54 billion estimate.

Five Below shares fell 0.7% to trade at $241.44 on Thursday.

These analysts made changes to their price targets on Five Below following earnings announcement.

Guggenheim analyst John Heinbockel maintained the stock with a Buy and raised the price target from $250 to $290. Wells Fargo analyst Edward Kelly maintained the stock with an Overweight rating and raised the price target from $260 to $295. Trending

Considering buying FIVE stock? Here’s what analysts think:

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Five Below, Inc. (FIVE) Q2 2027 Earnings Call September 2, 2026 4:30 PM EDT

Company Participants

Christiane Pelz - Vice President of Investor Relations
Winifred Park - President, CEO & Director
Daniel Sullivan - CFO & Treasurer

Conference Call Participants

Randal Konik - Jefferies LLC, Research Division
Krisztina Katai - Deutsche Bank AG, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Robert Ohmes - BofA Securities, Research Division
Michael Lasser - UBS Investment Bank, Research Division
David Bellinger - Mizuho Securities USA LLC, Research Division
Joseph Feldman - Telsey Advisory Group LLC
Scot Ciccarelli
Charles Grom - Gordon Haskett Research Advisors
Jeremy Hamblin - Craig-Hallum Capital Group LLC, Research Division
Edward Kelly - Wells Fargo Securities, LLC, Research Division
Katharine McShane - Goldman Sachs Group, Inc., Research Division
John Heinbockel - Guggenheim Securities, LLC, Research Division
Zhihan Ma - Bernstein Institutional Services LLC, Research Division
Phillip Blee - William Blair & Company L.L.C., Research Division

Presentation

Operator

Good day, and welcome to the Five Below Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded.

I'd now like to turn the conference over to Christiane Pelz, VP, Investor Relations. Please go ahead.

Christiane Pelz
Vice President of Investor Relations

Thank you. Good afternoon, everyone, and thanks for joining us today for Five Below's Second Quarter 2026 Financial Results Conference Call. On today's call are Winnie Park, Chief Executive Officer; and Dan Sullivan, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions. Certain comments made during this call may constitute forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements, including those described in the press release and our SEC filings.

In this presentation, we will refer to our SG&A expenses, which for us includes depreciation and

Five Below (FIVE - Free Report) reported $1.26 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 22.9%. EPS of $1.68 for the same period compares to $0.81 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.22 billion, representing a surprise of +3.79%. The company delivered an EPS surprise of +25.37%, with the consensus EPS estimate being $1.34.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Five Below performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable Sales: 14.1% versus 10.3% estimated by four analysts on average.Total stores at end of period: 2,022 compared to the 2,020 average estimate based on four analysts.New Store Openings: 52 versus the three-analyst average estimate of 50.View all Key Company Metrics for Five Below here>>>

Shares of Five Below have returned +10.3% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Q2 Net Sales Increase of 22.9% to $1.3 Billion; Comparable Sales Increase of 14.1%

Q2 GAAP Diluted EPS of $3.99, Q2 Adjusted Diluted EPS of $1.68

Increases Full Year 2026 Sales and EPS Outlook

PHILADELPHIA, PA, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the second quarter and year to date period ended August 1, 2026.

For the second quarter ended August 1, 2026:

Net sales increased by 22.9% to $1.26 billion from $1.03 billion in the second quarter of fiscal 2025; comparable sales increased by 14.1%.The Company opened 52 net new stores and ended the quarter with 2,022 stores in 46 states. This represents an increase in stores of 8.8% from the end of the second quarter of fiscal 2025.Operating income was $275.4 million compared to $52.4 million in the second quarter of fiscal 2025. Adjusted operating income(1) was $113.2 million compared to $55.1 million in the second quarter of fiscal 2025.The effective tax rate was 23.9% compared to 26.2% in the second quarter of fiscal 2025.Net income was $221.4 million compared to $42.8 million in the second quarter of fiscal 2025. Adjusted net income(1) was $93.4 million compared to $44.8 million in the second quarter of fiscal 2025.Diluted income per common share was $3.99 compared to $0.77 in the second quarter of fiscal 2025. Adjusted diluted income per common share(1) was $1.68 compared to $0.81 in the second quarter of fiscal 2025.The Company repurchased approximately 311,000 shares in the second quarter of fiscal 2026 at a cost of approximately $60.0 million.
(1) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”

Winnie Park, CEO of Five Below, said, “We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy. Our Crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop. We remain maniacally focused on delivering our brand promise to be THE destination for the KID and the KID in all of us.”

Ms. Park continued, “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. With a strong first half behind us and significant opportunities ahead, we are raising our full year outlook and look forward to delivering special curtain up moments for our customers through the holiday season and beyond.”

For the year to date period ended August 1, 2026:

Net sales increased by 27.5% to $2.55 billion from $2.00 billion in the year to date period of fiscal 2025; comparable sales increased by 18.3%.The Company opened 101 net new stores compared to 87 net new stores in the year to date period of fiscal 2025.Operating income was $429.6 million compared to $103.2 million in the year to date period of fiscal 2025. Adjusted operating income(2) was $268.0 million compared to $114.7 million in the year to date period of fiscal 2025.The effective tax rate was 24.0% compared to 26.7% in the year to date period of fiscal 2025.Net income was $344.5 million compared to $83.9 million in the year to date period of fiscal 2025. Adjusted net income(2) was $217.1 million compared to $92.3 million in the year to date period of fiscal 2025.Diluted income per common share was $6.20 compared to $1.52 in the year to date period of fiscal 2025. Adjusted diluted income per common share(2) was $3.91 compared to $1.67 in the year to date period of fiscal 2025. (2) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”

Third Quarter and Fiscal 2026 Outlook:
The Company expects the following results for the third quarter and full year of fiscal 2026. This outlook includes the expected impact of tariff rates currently in place and excludes the impact of future tariff refunds and share repurchases, if any.

For the third quarter of Fiscal 2026:

 Current OutlookNet sales$1.21 billion to $1.23 billionNet new storesapproximately 40Comparable sales+8% to +10%Net income$56 million to $63 millionDiluted income per common share$1.01 to $1.13Diluted weighted average shares outstanding55.4 million   For the full year of Fiscal 2026:

 Current OutlookPrior OutlookNet sales$5.63 billion to $5.71 billion$5.40 billion to $5.48 billionNet new storesapproximately 150approximately 150Comparable sales+10% to +12%+6% to +8%Net income$672 million to $698 million$480 million to $502 millionAdjusted net income(3)$546 million to $572 million$482 million to $504 millionDiluted income per common share$12.10 to $12.58$8.62 to $9.02Adjusted diluted income per common share(3)$9.83 to $10.31$8.65 to $9.05Diluted weighted average shares outstanding55.5 million55.7 millionGross capital expenditures$250 million to $260 million$230 million to $250 million    (3) Adjusted net income and adjusted diluted income per common share excludes the impact of tariff refunds and related interest recorded through the year to date period ended August 1, 2026 and retention awards granted in fiscal 2024, net of income tax impacts.

Share Repurchase Authorization:
On August 29, 2026, the Board of Directors approved a new share repurchase program authorizing the repurchase of up to $600 million of the Company’s common stock. The new share repurchase program replaces and supersedes the remaining capacity under the Company's prior share repurchase program authorized on November 27, 2023. The new repurchase program has no fixed expiration date and will remain in effect until all common stock authorized to be repurchased thereunder has been acquired, or until the repurchase program is otherwise replaced, suspended, or terminated.

Conference Call Information:
A conference call to discuss the financial results for the second quarter of fiscal 2026 is scheduled for today, September 2, 2026, at 4:30 p.m. Eastern Time. A live audio webcast of the conference call will be available online at investor.fivebelow.com, where a replay will be available shortly after the conclusion of the call. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 approximately 10 minutes prior to the start of the call.

Non-GAAP Information:
This press release includes the following non-GAAP financial measures: gross profit, adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share. The Company has reconciled these non-GAAP financial measures, with respect to the second quarter and year to date period ended August 1, 2026, with the most directly comparable GAAP financial measures within this filing. The Company believes that these non-GAAP financial measures provide its management with comparable financial data for internal financial analysis and provide meaningful supplemental information to investors. Non-GAAP financial measures have limitations as analytical tools. Other companies in the Company's industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP.

Forward-Looking Statements:
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be protected by the “safe harbor” provisions therein. Such statements reflect management’s current views and estimates regarding the Company’s industry, business strategy, goals, expectations and outlook concerning its market position, operations, margins, profitability, capital expenditures, liquidity and capital resources, store count potential and other financial and operating information. Investors can identify these statements by the fact that they use words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future” and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Although we believe there is a reasonable basis for such forward-looking statements, our actual results may differ materially from these expectations due to risks that include, but are not limited to, risks related to disruption to the global supply chain, increased cost of freight, constraints on shipping capacity to transport inventory or the timely receipt of inventory, risks related to the Company’s strategy and expansion plans, risks related to our ability to attract, retain, and motivate qualified executive talent, risks related to disruptions in our information technology systems and our ability to maintain and upgrade those systems, risks related to our ability to successfully implement our online retail operations, risks related to cyberattacks or other cyber incidents, such as the failure to secure customers’ confidential or credit card information, or other private data relating to our crew or the Company, including the costs associated with protection against or remediation of such incidents, risks related to increased usage of machine learning and other types of artificial intelligence in our business, and challenges with properly managing its use, risks related to our ability to select, obtain, distribute and market merchandise profitably, risks related to our reliance on merchandise manufactured outside of the United States, including risks related to direct and indirect impact of current and potential tariffs imposed, threatened, or proposed by the United States on foreign imports, including, without limitation, the tariffs themselves, any counter-measures thereto (in addition to any applicable foreign trade restrictions, generally) and any indirect effects on consumer discretionary spending, risks related to the availability of suitable new store locations and the dependence on the volume of traffic to our stores and website, risks related to our dependence on our executive officers, senior management and other key personnel or our ability to hire additional qualified personnel, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, risks related to inflation and increasing commodity prices and related effects, such as a reduction in our unit sales (including an inability to increase sales), damage to our reputation with our customers, our becoming less competitive in the marketplace or exposure to fraud or theft due to customer payment-related risks, risks related to potential recessions and systematic failure of the banking system in the United States or globally, risks related to natural disasters, adverse weather conditions, pandemic outbreaks, global political events, war, terrorism or civil unrest (including any negative effects to our business and results of operations), risks related to building, operating or expanding shipcenters or network capacity, risks related to our ability to successfully manage inventory balance and inventory shrinkage, quality or safety concerns about the Company’s merchandise (including the impact of product and food safety claims and legislation), increased competition from other retailers including online retailers, risks related to the seasonality of our business, risks related to our ability to protect our brand name and other intellectual property, risks related to customers’ payment methods, risks associated with the restrictions imposed by our indebtedness on our current and future operations, the impact of changes in tax legislation and accounting standards, risks related to our insurance programs and their effect on our financial performance and risks associated with leasing substantial amounts of space and owning real property. For further details and a discussion of these and other risks and uncertainties that may cause our actual results to differ materially from the expectations contained herein, see the Company’s periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements, despite the Company’s reasonable basis for such statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

About Five Below:
Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 2,000 stores in 47 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.

Investor Contact:
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations
[email protected]

 FIVE BELOW, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands)
          August 1, 2026
 January 31, 2026
 August 2, 2025
Assets        Current assets:        Cash and cash equivalents$561,083  $723,699  $562,746 Short-term investment securities 626,821   208,508   107,418 Inventories 941,162   846,609   799,602 Prepaid income taxes and tax receivable 5,574   5,210   4,657 Prepaid expenses and other current assets 100,712   132,697   110,495 Total current assets 2,235,352   1,916,723   1,584,918 Property and equipment, net 1,250,477   1,234,331   1,253,808 Operating lease assets 1,766,069   1,765,704   1,746,255 Other assets 25,928   20,261   21,557  $5,277,826  $4,937,019  $4,606,538          Liabilities and Shareholders’ Equity        Current liabilities:        Line of credit$—  $—  $— Accounts payable 436,734   368,381   371,801 Income taxes payable 1,388   56,644   — Accrued salaries and wages 44,341   67,505   36,532 Other accrued expenses 215,896   160,328   204,926 Operating lease liabilities 307,637   301,148   311,365 Total current liabilities 1,005,996   954,006   924,624 Other long-term liabilities 11,318   8,667   10,288 Long-term operating lease liabilities 1,731,001   1,731,041   1,707,261 Deferred income taxes 53,388   50,015   57,118 Total liabilities 2,801,703   2,743,729   2,699,291 Shareholders’ equity:        Common stock 550   551   550 Additional paid-in capital 117,174   178,791   167,480 Retained earnings 2,358,399   2,013,948   1,739,217 Total shareholders’ equity 2,476,123   2,193,290   1,907,247  $5,277,826  $4,937,019  $4,606,538               FIVE BELOW, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)
     Thirteen Weeks Ended
 Twenty-Six Weeks Ended
 August 1, 2026
 August 2, 2025
 August 1, 2026
 August 2, 2025
Net sales$1,261,493  $1,026,847  $2,547,095  $1,997,374 Cost of goods sold (exclusive of items shown separately below) 649,070   684,478   1,456,030   1,331,092 Selling, general and administrative expenses 285,870   242,314   559,146   468,816 Depreciation and amortization 51,203   47,690   102,326   94,254 Operating income 275,350   52,365   429,593   103,212 Interest income and other income, net 15,418   5,540   23,673   11,187 Income before income taxes 290,768   57,905   453,266   114,399 Income tax expense 69,373   15,143   108,815   30,489 Net income$221,395  $42,762  $344,451  $83,910 Basic income per common share$4.02  $0.78  $6.24  $1.52 Diluted income per common share$3.99  $0.77  $6.20  $1.52 Weighted average shares outstanding:           Basic shares 55,130,589   55,072,140   55,196,391   55,059,126 Diluted shares 55,474,573   55,389,479   55,540,532   55,289,719                   FIVE BELOW, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
     Twenty-Six Weeks Ended  August 1, 2026 August 2, 2025Operating activities:    Net income $344,451  $83,910 Adjustments to reconcile net income to net cash provided by operating activities:    Depreciation and amortization  102,326   94,254 Share-based compensation expense  15,029   18,419 Deferred income tax expense (benefit)  3,373   (2,773)Other non-cash expenses  4,768   754 Changes in operating assets and liabilities:    Inventories  (94,553)  (140,102)Prepaid income taxes and tax receivable  (364)  (8)Prepaid expenses and other assets  26,246   46,240 Accounts payable  63,694   110,636 Income taxes payable  (55,256)  (51,998)Accrued salaries and wages  (23,164)  16,789 Operating leases  6,084   (2,654)Other accrued expenses  50,076   52,191 Net cash provided by operating activities  442,710   225,658 Investing activities:    Purchases of investment securities and other investments  (540,207)  (95,648)Sales, maturities, and redemptions of investment securities  121,895   185,303 Capital expenditures  (110,417)  (80,928)Net cash (used in) provided by investing activities  (528,729)  8,727 Financing activities:    Net proceeds from issuance of common stock  462   477 Repurchase and retirement of common stock  (60,363)  — Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units  2   1 Common shares withheld for taxes  (16,698)  (3,835)Net cash used in financing activities  (76,597)  (3,357)Net (decrease) increase in cash and cash equivalents  (162,616)  231,028 Cash and cash equivalents at beginning of period  723,699   331,718 Cash and cash equivalents at end of period $561,083  $562,746            FIVE BELOW, INC.
GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)  Reconciliation of gross profit to adjusted gross profit

  Thirteen Weeks Ended
 Twenty-Six Weeks Ended
  August 1, 2026 August 2, 2025
 August 1, 2026 August 2, 2025
Gross profit(4) $612,423  $342,369  $1,091,065  $666,282 Adjustments:          Retention awards(5)  255   390   255   780 Cost-optimization initiatives(6)  —   —   —   4,100 Non-recurring lease acquisition costs(7)  —   495   —   495 IEEPA tariff refunds(8)  (163,583)  —   (163,583)  — Adjusted gross profit(9) $449,095  $343,254  $927,737  $671,657                   Reconciliation of operating income, as reported, to adjusted operating income

  Thirteen Weeks Ended
 Twenty-Six Weeks Ended
  August 1, 2026 August 2, 2025
 August 1, 2026 August 2, 2025
Operating income, as reported $275,350  $52,365  $429,593  $103,212 Adjustments:          Retention awards(5)  1,413   2,259   1,954   5,196 Cost-optimization initiatives(6)  —   —   —   4,960 Non-recurring lease acquisition costs(7)  —   495   —   495 Non-recurring inventory write-off  —   —   —   830 IEEPA tariff refunds(8)  (163,583)  —   (163,583)  — Adjusted operating income(9) $113,180  $55,119  $267,964  $114,694                   Reconciliation of net income, as reported, to adjusted net income

 Thirteen Weeks Ended
 Twenty-Six Weeks Ended
 August 1, 2026 August 2, 2025
 August 1, 2026 August 2, 2025
Net income, as reported$221,395  $42,762  $344,451  $83,910 Adjustments:         Retention awards, net of tax(5) 1,076   1,668   1,485   3,811 Cost-optimization initiatives, net of tax(6) —   —   —   3,638 Non-recurring lease acquisition costs, net of tax(7) —   366   —   363 Non-recurring inventory write-off, net of tax —   —   —   609 IEEPA tariff refunds, net of tax(10) (129,075)  —   (128,823)  — Adjusted net income(9)$93,397  $44,796  $217,114  $92,332                  Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share

  Thirteen Weeks Ended
 Twenty-Six Weeks Ended
  August 1, 2026 August 2, 2025
 August 1, 2026 August 2, 2025
Diluted income per common share, as reported $3.99  $0.77  $6.20  $1.52 Adjustments:          Retention awards per share(5)  0.02   0.03   0.03   0.07 Cost-optimization initiatives per share(6)  —   —   —   0.07 Non-recurring lease acquisition costs per share(7)  —   0.01   —   0.01 Non-recurring inventory write-off per share  —   —   —   0.01 IEEPA tariff refunds per share(10)  (2.33)  —   (2.32)  — Adjusted diluted income per common share(9) $1.68  $0.81  $3.91  $1.67                   (4) Gross profit, a non-GAAP financial measure, is equal to our net sales less our cost of goods sold.
(5) Retention awards relate to the on-going expense recognition of cash and equity granted to certain individuals in fiscal 2024 during the CEO transition that were earned and vested through August 2026.
(6) Represents charges related to the cost-optimization of certain functions.
(7) Represents non-recurring costs incurred with the strategic acquisition of certain leases.
(8) Represents International Emergency Economic Powers Act ("IEEPA") tariff refunds.
(9) Components may not add to total due to rounding.
(10) Represents IEEPA tariff refunds and related interest.