Five Below (NASDAQ:FIVE) Posts Quarterly Earnings Results, Beats Estimates By $0.28 EPS

Five Below (NASDAQ:FIVE) issued its quarterly earnings results on Wednesday. The specialty retailer reported $1.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.28, FiscalAI reports. Five Below had a return on equity of 22.97% and a net margin of 11.65%.The business had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the company posted $0.81 earnings per share. The firm’s revenue for the quarter was up 22.9% compared to the same quarter last year. Five Below updated its Q3 2026 guidance to 1.010-1.130 EPS and its FY 2026 guidance to 9.830-10.310 EPS.

Here are the key takeaways from Five Below’s conference call:

• Second-quarter results significantly exceeded expectations: Sales rose 23% to $1.3 billion, comparable sales increased 14%, and adjusted EPS more than doubled to $1.68. Growth was supported by strong traffic and transactions across customer cohorts, geographies, and product categories.
• Five Below raised its full-year fiscal 2026 outlook, projecting 19% sales growth at the midpoint, 10%–12% comparable-sales growth, adjusted operating margin of approximately 12.5%, and adjusted EPS of $10.07, up 51% year over year.
• Profitability improved materially: Adjusted gross margin expanded 220 basis points to 35.6% and adjusted operating margin increased 360 basis points to 9%, driven by merchandise-margin gains, fixed-cost leverage, and improved shrink performance.
• Management emphasized continued growth opportunities from its merchandising, social-media marketing, store-experience initiatives, and disciplined real-estate strategy. The company opened 52 net new stores in the quarter, plans 115 openings for the year, and announced an initial Puerto Rico entry in the second half of 2027.
• Higher fuel costs remain a margin headwind, while tariff benefits are expected to be limited in the second half and could partially reverse in 2027 as certain tariff rates rise. Management also noted that holiday execution, store capacity, and omni-channel labor requirements remain important variables.

Five Below Stock Performance

Shares of FIVE stock opened at $239.96 on Friday. The company has a market cap of $13.27 billion, a P/E ratio of 21.54, a PEG ratio of 1.25 and a beta of 0.99. Five Below has a fifty-two week low of $137.77 and a fifty-two week high of $263.88. The stock has a 50 day simple moving average of $216.78 and a two-hundred day simple moving average of $217.58.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on FIVE shares. KeyCorp reaffirmed a “sector weight” rating on shares of Five Below in a report on Thursday, June 4th. Weiss Ratings reiterated a “hold (c)” rating on shares of Five Below in a report on Wednesday. Barclays dropped their target price on Five Below from $240.00 to $224.00 and set an “equal weight” rating for the company in a research report on Friday, June 5th. Cantor Fitzgerald lowered shares of Five Below to a “neutral” rating in a report on Thursday, August 13th. Finally, Telsey Advisory Group raised their price target on shares of Five Below from $280.00 to $305.00 and gave the company an “outperform” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $296.20.

Trending Headlines about Five Below

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

• Positive Sentiment: Five Below reported adjusted Q2 EPS of $1.68 versus the $1.40 consensus estimate, while revenue rose 22.9% year over year to approximately $1.26 billion, ahead of expectations. Comparable sales increased 14.1%, supported by higher traffic, repeat visits and its “Rolling Thunder” product launches. Five Below fiscal 2026 second-quarter financial results
• Positive Sentiment: Management raised fiscal 2026 guidance to $5.63 billion-$5.71 billion in revenue and $9.83-$10.31 in EPS, and issued Q3 EPS guidance of $1.01-$1.13. The outlook reflects continued traffic, store growth and demand for trend-focused merchandise aimed at younger shoppers, including Gen Alpha. Five Below Q2 earnings call and raised outlook
• Positive Sentiment: The company authorized a $600 million share-repurchase program, potentially supporting per-share earnings and signaling confidence in cash generation. Analysts also raised targets, including JPMorgan’s increase to $368, Truist’s to $297 and Morgan Stanley’s to $300; Bank of America reiterated a Buy rating with a $340 target.
• Neutral Sentiment: Jim Cramer highlighted Five Below’s strong performance and customer appeal, but noted that comparable-sales growth is decelerating. He characterized the current growth rate as still impressive despite the moderation. Jim Cramer’s case for Five Below after earnings
• Negative Sentiment: The stock’s elevated valuation and decelerating comparable sales leave investors sensitive to any signs that traffic or merchandise momentum is weakening. The recent pullback after the post-earnings advance suggests some profit-taking and caution despite the favorable fundamentals.

Institutional Investors Weigh In On Five Below

A number of large investors have recently bought and sold shares of FIVE. AQR Capital Management LLC boosted its position in shares of Five Below by 176.0% during the 4th quarter. AQR Capital Management LLC now owns 1,168,832 shares of the specialty retailer’s stock worth $220,161,000 after purchasing an additional 745,272 shares in the last quarter. Marshall Wace LLP grew its stake in Five Below by 54.6% in the fourth quarter. Marshall Wace LLP now owns 1,785,169 shares of the specialty retailer’s stock valued at $336,254,000 after acquiring an additional 630,710 shares during the period. Alyeska Investment Group L.P. bought a new stake in shares of Five Below during the fourth quarter valued at approximately $100,884,000. Wellington Management Group LLP raised its position in shares of Five Below by 149.0% during the third quarter. Wellington Management Group LLP now owns 848,105 shares of the specialty retailer’s stock worth $131,202,000 after purchasing an additional 507,487 shares during the period. Finally, Invesco Ltd. increased its stake in Five Below by 108.0% during the 4th quarter. Invesco Ltd. now owns 886,154 shares of the specialty retailer’s stock valued at $166,916,000 after purchasing an additional 460,112 shares in the last quarter.

Five Below Company Profile

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.