Five Below Shares Jump on Strong Q2 Earnings and Raised Outlook
The discount retailer's net sales grew 23.7% year-over-year, beating analyst estimates and prompting a higher full-year forecast.
Five Below, Inc. (NASDAQ: FIVE) delivered second-quarter financial results that surpassed expectations, sending a strong signal of the retailer's appeal in a challenging economic climate. The company reported a 23.7% increase in net sales to $1.03 billion for the quarter ending August 2, 2025, beating analyst forecasts. The strong performance prompted the company to raise its full-year guidance.
The Philadelphia-based retailer, known for its trend-right products primarily priced under $5, posted adjusted diluted earnings per share of $0.81, a significant jump from $0.54 in the same quarter last year and well above the consensus forecast of $0.63. Comparable sales saw a robust increase of 12.4%, indicating healthy traffic and spending at existing stores.
"We are excited to deliver second quarter results that exceeded our sales and earnings expectations," said Winnie Park, CEO of Five Below. "These results demonstrate the effectiveness of our strategy and are a testament to the hard work... especially in an ever-changing tariff environment. Our results demonstrate that our customers are recognizing us as the destination for fun at great value."
The company's growth was also fueled by aggressive store expansion. Five Below opened 32 net new stores in the second quarter, bringing its total footprint to 1,858 locations across 44 states, an 11.5% increase in its store count year-over-year.
Reflecting confidence in its continued momentum, Five Below raised its outlook for the full 2025 fiscal year. The company now projects net sales to be between $4.44 billion and $4.52 billion, with comparable sales growth expected to land between 5% and 7%. The forecast for adjusted diluted earnings per share was also lifted to a range of $4.76 to $5.16.
For the upcoming third quarter, the company anticipates net sales in the range of $950 million to $970 million, with comparable sales growth moderating slightly to between 5% and 7%.
Park added that the company remains "laser-focused on delivering the magic of Five Below" as it heads into the crucial Halloween and holiday shopping seasons, planning to continue attracting customers with new products and exceptional value.