Five Below, Inc. Announces First Quarter Fiscal 2026 Financial Results
Rhea-AI Summary
Five Below (NASDAQ:FIVE) reported strong Q1 fiscal 2026 results, with net sales up 32.5% to $1.29 billion and comparable sales rising 22.7%. GAAP diluted EPS was $2.21, adjusted diluted EPS $2.22. Operating income reached $154.2 million and net income $123.1 million.
The company opened 49 net new stores, ending the quarter with 1,970 stores, up 7.9% year over year. Five Below raised its full-year 2026 outlook, guiding net sales of $5.40–$5.48 billion and GAAP diluted EPS of $8.62–$9.02.
Positive
- Q1 2026 net sales grew 32.5% to $1,285.6 million
- Q1 comparable sales increased 22.7%
- Q1 GAAP diluted EPS rose to $2.21 from $0.75 year over year
- Q1 net income increased to $123.1 million from $41.1 million
- Store base expanded 7.9% to 1,970 locations
- Full-year 2026 sales guidance set at $5.40–$5.48 billion
- Full-year 2026 GAAP diluted EPS guided to $8.62–$9.02
Negative
- None.
News Market Reaction – FIVE
In the Jun 4 session, FIVE declined 13.78%, reflecting a significant negative market reaction. Argus tracked a trough of -10.8% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | Q4/FY25 earnings | Positive | +10.7% | Strong FY2025 sales and EPS growth with raised FY2026 guidance. |
| Dec 03 | Q3 FY25 earnings | Positive | +3.2% | Q3 sales and comps strength and guidance raise for FY2025. |
| Aug 27 | Q2 FY25 earnings | Positive | +3.9% | Robust Q2 sales, EPS growth and increased FY2025 outlook. |
| Jun 04 | Q1 FY25 earnings | Positive | +5.6% | Double-digit Q1 growth, margin improvement and higher FY2025 guidance. |
| Mar 19 | Q4/FY24 earnings | Positive | +0.7% | FY2024 growth with store expansion and FY2025 guidance initiation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases over the past five quarters have consistently been received positively, with all recorded 24-hour moves positive following generally strong sales, comps, and guidance updates.
Over the last five earnings cycles, Five Below has repeatedly delivered strong growth. Prior results showed net sales rising from $3.88B in FY2024 to $4.76B in FY2025, with improving comparable sales and EPS. Each quarter, management raised or tightened guidance and continued opening new stores. The current Q1 FY2026 release extends this pattern with 32.5% net sales growth, 22.7% comp growth, and higher full-year 2026 sales and EPS outlook, reinforcing the multi-year expansion story highlighted in earlier earnings updates.
Key Terms
gaap financial
non-gaap financial
adjusted operating income financial
adjusted net income financial
effective tax rate financial
tariff rates financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q1 Net Sales Increase of
Q1 GAAP Diluted EPS of
Increases Full Year 2026 Sales and EPS Outlook
PHILADELPHIA, PA, June 03, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the first quarter ended May 2, 2026.
For the first quarter ended May 2, 2026:
- Net sales increased by
32.5% to$1,285.6 million from$970.5 million in the first quarter of fiscal 2025; comparable sales increased by22.7% . - The Company opened 49 net new stores and ended the quarter with 1,970 stores in 46 states. This represents an increase in stores of
7.9% from the end of the first quarter of fiscal 2025. - Operating income was
$154.2 million compared to$50.8 million in the first quarter of fiscal 2025. Adjusted operating income(1) was$154.8 million compared to$59.6 million in the first quarter of fiscal 2025. - The effective tax rate was
24.3% compared to27.2% in the first quarter of fiscal 2025. - Net income was
$123.1 million compared to$41.1 million in the first quarter of fiscal 2025. Adjusted net income(1) was$123.5 million compared to$47.5 million in the first quarter of fiscal 2025. - Diluted income per common share was
$2.21 compared to$0.75 in the first quarter of fiscal 2025. Adjusted diluted income per common share(1) was$2.22 compared to$0.86 in the first quarter of fiscal 2025.
(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 outstanding first quarter performance, which is a testament to the team’s execution of our customer-centric strategy. The result was broad-based growth across our merchandising worlds, new and existing customers, and all demographic and geographic segments. Our continued focus on compelling newness at amazing value and great store execution are at the heart of our operating flywheel. We successfully amplified social media trends and drove outsized traffic through coordinated merchandising and marketing efforts.”
Ms. Park continued, “Our teams have demonstrated focus, discipline and agility in navigating macroeconomic uncertainty and we are committed to delivering amazing product at great value. With a solid foundation in place, we are well positioned to deliver durable top- and bottom-line growth with our unique brand value proposition as THE destination for the KID and the KID in all of us.”
Second Quarter and Fiscal 2026 Outlook:
The Company expects the following results for the second quarter and full year of fiscal 2026. This outlook includes the expected impact of tariff rates currently in place through July 24, 2026, and assumes tariffs thereafter revert to rates in place at the start of the fiscal year. This outlook excludes the impact of tariff refunds and share repurchases, if any.
For the second quarter of Fiscal 2026:
- Net sales are expected to be in the range of
$1.18 billion to$1.20 billion based on opening approximately 50 new stores and assumes an approximate7% to9% increase in comparable sales. - Net income is expected to be in the range of
$64 million to$71 million . Adjusted net income(2) is expected to be in the range of$65 million to$72 million . - Diluted income per common share is expected to be in the range of
$1.15 t o$1.27 on approximately 55.7 million diluted weighted average shares outstanding. Adjusted diluted income per common share(2) is expected to be in the range of$1.17 t o$1.29 .
(2) Adjusted net income and adjusted diluted income per common share exclude the impact of retention awards granted in fiscal 2024, net of income tax impact.
For the full year of Fiscal 2026:
- Net sales are expected to be in the range of
$5.40 billion to$5.48 billion based on opening approximately 150 net new stores and assumes an approximate6% to8% increase in comparable sales. - Net income is expected to be in the range of
$480 million to$502 million . Adjusted net income(3) is expected to be in the range of$482 million to$504 million . - Diluted income per common share is expected to be in the range of
$8.62 t o$9.02 on approximately 55.7 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of$8.65 t o$9.05 . - Gross capital expenditures are expected to be in the range of
$230 million to$250 million .
(3) Adjusted net income and adjusted diluted income per common share exclude the impact of retention awards granted in fiscal 2024, net of income tax impact.
Conference Call Information:
A conference call to discuss the financial results for the first quarter of fiscal 2026 is scheduled for today, June 3, 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.
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 first quarter ended May 2, 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
Investor Contact:
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations
InvestorRelations@fivebelow.com
| FIVE BELOW, INC. Consolidated Balance Sheets (Unaudited) (in thousands) | ||||||||
| May 2, 2026 | January 31, 2026 | May 3, 2025 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 638,892 | $ | 723,699 | $ | 427,462 | ||
| Short-term investment securities | 474,370 | 208,508 | 196,529 | |||||
| Inventories | 813,300 | 846,609 | 702,053 | |||||
| Prepaid income taxes and tax receivable | 5,210 | 5,210 | 4,649 | |||||
| Prepaid expenses and other current assets | 130,176 | 132,697 | 142,429 | |||||
| Total current assets | 2,061,948 | 1,916,723 | 1,473,122 | |||||
| Property and equipment, net | 1,242,449 | 1,234,331 | 1,260,795 | |||||
| Operating lease assets | 1,725,210 | 1,765,704 | 1,696,917 | |||||
| Other assets | 25,396 | 20,261 | 21,968 | |||||
| $ | 5,055,003 | $ | 4,937,019 | $ | 4,452,802 | |||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | — | $ | — | $ | — | ||
| Accounts payable | 351,544 | 368,381 | 276,505 | |||||
| Income taxes payable | 95,234 | 56,644 | 72,365 | |||||
| Accrued salaries and wages | 46,704 | 67,505 | 31,179 | |||||
| Other accrued expenses | 188,684 | 160,328 | 176,750 | |||||
| Operating lease liabilities | 300,545 | 301,148 | 304,950 | |||||
| Total current liabilities | 982,711 | 954,006 | 861,749 | |||||
| Other long-term liabilities | 10,890 | 8,667 | 8,049 | |||||
| Long-term operating lease liabilities | 1,698,164 | 1,731,041 | 1,670,168 | |||||
| Deferred income taxes | 50,767 | 50,015 | 54,774 | |||||
| Total liabilities | 2,742,532 | 2,743,729 | 2,594,740 | |||||
| Shareholders’ equity: | ||||||||
| Common stock | 552 | 551 | 549 | |||||
| Additional paid-in capital | 174,915 | 178,791 | 161,058 | |||||
| Retained earnings | 2,137,004 | 2,013,948 | 1,696,455 | |||||
| Total shareholders’ equity | 2,312,471 | 2,193,290 | 1,858,062 | |||||
| $ | 5,055,003 | $ | 4,937,019 | $ | 4,452,802 | |||
| FIVE BELOW, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) | |||||
| Thirteen Weeks Ended | |||||
| May 2, 2026 | May 3, 2025 | ||||
| Net sales | $ | 1,285,602 | $ | 970,527 | |
| Cost of goods sold (exclusive of items shown separately below) | 806,960 | 646,614 | |||
| Selling, general and administrative expenses | 273,276 | 226,502 | |||
| Depreciation and amortization | 51,123 | 46,564 | |||
| Operating income | 154,243 | 50,847 | |||
| Interest income and other income, net | 8,255 | 5,647 | |||
| Income before income taxes | 162,498 | 56,494 | |||
| Income tax expense | 39,442 | 15,346 | |||
| Net income | $ | 123,056 | $ | 41,148 | |
| Basic income per common share | $ | 2.23 | $ | 0.75 | |
| Diluted income per common share | $ | 2.21 | $ | 0.75 | |
| Weighted average shares outstanding: | |||||
| Basic shares | 55,262,924 | 55,045,966 | |||
| Diluted shares | 55,607,222 | 55,189,813 | |||
| FIVE BELOW, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands) | |||||||
| Thirteen Weeks Ended | |||||||
| May 2, 2026 | May 3, 2025 | ||||||
| Operating activities: | |||||||
| Net income | $ | 123,056 | $ | 41,148 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 51,123 | 46,564 | |||||
| Share-based compensation expense | 5,132 | 9,859 | |||||
| Deferred income tax expense (benefit) | 752 | (5,117 | ) | ||||
| Other non-cash expenses | 1,588 | 94 | |||||
| Changes in operating assets and liabilities: | |||||||
| Inventories | 33,309 | (42,553 | ) | ||||
| Prepaid expenses and other assets | (2,650 | ) | 13,931 | ||||
| Accounts payable | (20,238 | ) | 14,733 | ||||
| Income taxes payable | 38,590 | 20,367 | |||||
| Accrued salaries and wages | (20,801 | ) | 11,436 | ||||
| Operating leases | 7,014 | 3,176 | |||||
| Other accrued expenses | 10,349 | 19,024 | |||||
| Net cash provided by operating activities | 227,224 | 132,662 | |||||
| Investing activities: | |||||||
| Purchases of investment securities and other investments | (271,833 | ) | (82,393 | ) | |||
| Sales, maturities, and redemptions of investment securities | 5,971 | 82,938 | |||||
| Capital expenditures | (37,189 | ) | (36,209 | ) | |||
| Net cash used in investing activities | (303,051 | ) | (35,664 | ) | |||
| Financing activities: | |||||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 1 | — | |||||
| Common shares withheld for taxes | (8,981 | ) | (1,254 | ) | |||
| Net cash used in financing activities | (8,980 | ) | (1,254 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (84,807 | ) | 95,744 | ||||
| Cash and cash equivalents at beginning of period | 723,699 | 331,718 | |||||
| Cash and cash equivalents at end of period | $ | 638,892 | $ | 427,462 | |||
| 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 | |||||
| May 2, 2026 | May 3, 2025 | ||||
| Gross profit(4) | $ | 478,642 | $ | 323,913 | |
| Adjustments: | |||||
| Retention awards(5) | — | 390 | |||
| Cost-optimization initiatives(6) | — | 4,100 | |||
| Adjusted gross profit(7) | $ | 478,642 | $ | 328,403 | |
Reconciliation of operating income, as reported, to adjusted operating income
| Thirteen Weeks Ended | |||||
| May 2, 2026 | May 3, 2025 | ||||
| Operating income, as reported | $ | 154,243 | $ | 50,847 | |
| Adjustments: | |||||
| Retention awards(5) | 541 | 2,937 | |||
| Cost-optimization initiatives(6) | — | 4,960 | |||
| Non-recurring inventory write-off | — | 830 | |||
| Adjusted operating income(7) | $ | 154,784 | $ | 59,574 | |
Reconciliation of net income, as reported, to adjusted net income
| Thirteen Weeks Ended | |||||
| May 2, 2026 | May 3, 2025 | ||||
| Net income, as reported | $ | 123,056 | $ | 41,148 | |
| Adjustments: | |||||
| Retention awards, net of tax(5) | 410 | 2,139 | |||
| Cost-optimization initiatives, net of tax(6) | — | 3,612 | |||
| Non-recurring inventory write-off, net of tax | — | 605 | |||
| Adjusted net income(7) | $ | 123,465 | $ | 47,505 | |
Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share
| Thirteen Weeks Ended | |||||
| May 2, 2026 | May 3, 2025 | ||||
| Diluted income per common share, as reported | $ | 2.21 | $ | 0.75 | |
| Adjustments: | |||||
| Retention awards per share(5) | 0.01 | 0.04 | |||
| Cost-optimization initiatives per share(6) | — | 0.07 | |||
| Non-recurring inventory write-off per share | — | 0.01 | |||
| Adjusted diluted income per common share(7) | $ | 2.22 | $ | 0.86 | |
(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 will be earned and will vest through fiscal 2026.
(6) Represents charges related to the cost-optimization of certain functions.
(7) Components may not add to total due to rounding.
