Five Below (NASDAQ:FIVE) Announces Quarterly Earnings Results

Five Below (NASDAQ:FIVE) released its quarterly earnings data on Wednesday. The specialty retailer reported $4.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.00 by $0.31, FiscalAI reports. The business had revenue of $1.73 billion during the quarter, compared to analysts’ expectations of $1.71 billion. Five Below had a net margin of 6.96% and a return on equity of 17.15%. The firm’s quarterly revenue was up 24.3% compared to the same quarter last year. During the same period in the prior year, the company earned $3.48 EPS.

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

• Five Below reported a strong FY2025 with net sales up 23% to about $4.8 billion, comps +12.8%, operating margin near 10%, and adjusted EPS up 32% to $6.67, capped by a Q4 comp of +15.4%.
• Management guided fiscal 2026 to sales of $5.2–$5.3 billion (~+10% midpoint), comps of 3–5% (≈17% two‑year stack), adjusted operating margin ~10.9%, and EPS ~$8, while calling out a strong Q1 guide (comps 14–16%, EPS $1.63).
• Tariff and inventory risks remain: transitory tariffs pressured margins (roughly ~90 bps full‑year headwind, ~160 bps in Q4), inventory rose 28% to $847 million, and guidance assumes current tariff rates without modeling the newly enacted 150‑day Section 122 tariffs.
• Company emphasized strategic shifts—pivot to social/creator marketing, building CRM, higher in‑store labor, omni‑channel (third‑party delivery), curated assortments and expanded price points—which management says drove traffic, ticket growth and new‑store productivity; CapEx is rising to $230–$250M to fund ~150 net new stores and tech/distribution capacity.

Five Below Price Performance

Five Below stock opened at $212.47 on Thursday. The stock’s 50 day moving average is $206.39 and its 200 day moving average is $177.41. Five Below has a one year low of $52.38 and a one year high of $229.33. The firm has a market cap of $11.72 billion, a P/E ratio of 38.15, a P/E/G ratio of 1.64 and a beta of 1.10.

Insider Activity at Five Below

In other Five Below news, CAO Eric M. Specter sold 8,500 shares of the stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $201.15, for a total transaction of $1,709,775.00. Following the completion of the sale, the chief accounting officer directly owned 45,724 shares in the company, valued at approximately $9,197,382.60. This trade represents a 15.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Kenneth R. Bull sold 5,100 shares of Five Below stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $203.21, for a total value of $1,036,371.00. Following the completion of the sale, the chief operating officer owned 101,040 shares of the company’s stock, valued at approximately $20,532,338.40. The trade was a 4.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 15,525 shares of company stock valued at $3,135,554. Company insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Five Below

A number of institutional investors have recently modified their holdings of FIVE. Advisory Services Network LLC purchased a new stake in shares of Five Below in the third quarter valued at about $32,000. iSAM Funds UK Ltd purchased a new position in Five Below during the third quarter worth about $40,000. NewEdge Advisors LLC grew its position in Five Below by 143.0% in the 1st quarter. NewEdge Advisors LLC now owns 1,096 shares of the specialty retailer’s stock worth $82,000 after purchasing an additional 645 shares in the last quarter. Steward Partners Investment Advisory LLC grew its position in Five Below by 314.2% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 439 shares of the specialty retailer’s stock worth $83,000 after purchasing an additional 333 shares in the last quarter. Finally, GW&K Investment Management LLC increased its stake in Five Below by 69.0% in the 4th quarter. GW&K Investment Management LLC now owns 475 shares of the specialty retailer’s stock valued at $90,000 after buying an additional 194 shares during the last quarter.

Five Below News Roundup

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

• Positive Sentiment: Q4 beat on both EPS and revenue — reported $4.31 EPS (above estimates) and $1.73B revenue, signaling healthy holiday demand and margin leverage. Five Below Stock Climbs On Q4 Earnings Beat, Strong Outlook
• Positive Sentiment: Management commentary and guidance were upbeat — company said shoppers across income levels bought at stores and that viral trends (e.g., “squishy” toys) and marketing to younger shoppers are driving traffic. Five Below stock continues its tear
• Positive Sentiment: Underlying operational momentum: strong top-line growth, expanding gross and operating profit year-over-year and improved cash from operations — supports durability of margins. Five Below Inc. Stock Rises on Q4 2025 Earnings
• Neutral Sentiment: Analyst moves are mixed but generally constructive — some price-target increases and bullish notes have supported momentum (median target ~ $216), though ratings vary. Five Below climbs as traders position
• Neutral Sentiment: Ongoing consumer-interest stories (product features, viral items) help brand relevance but have indirect, slower impact on fundamentals. Bogg Bag dupe at Five Below
• Negative Sentiment: Significant insider selling activity (multiple officers selling shares over recent months) can be viewed negatively by some investors. QuiverQuant insider trading summary
• Negative Sentiment: Macro risk — hotter-than-expected February PPI raises the risk of higher input costs that could pressure retail margins or force promotional responses. February PPI Hotter-Than-Expected

Analyst Ratings Changes

FIVE has been the topic of a number of recent research reports. Evercore lifted their price target on Five Below from $180.00 to $185.00 and gave the company an “in-line” rating in a research note on Tuesday, December 23rd. Wells Fargo & Company raised their price objective on shares of Five Below from $200.00 to $220.00 and gave the company an “overweight” rating in a report on Tuesday, January 13th. Guggenheim set a $225.00 target price on shares of Five Below in a research report on Wednesday, January 14th. Sanford C. Bernstein reissued a “market perform” rating and set a $206.00 target price on shares of Five Below in a report on Monday, February 9th. Finally, UBS Group set a $255.00 price target on shares of Five Below in a research report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Five Below currently has a consensus rating of “Moderate Buy” and a consensus target price of $210.05.

About Five Below

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.