Five Below Reports 19.5% Revenue Growth to $970.5 Million in Latest Quarter

Five Below, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $970.5 million for the thirteen weeks ended May 3, 2025, compared to $811.9 million for the same period last year, marking a 19.5% increase. This growth was driven by a combination of a $103.3 million increase in non-comparable sales from new store openings and a $55.3 million rise in comparable sales, which increased by 7.1%. The company’s gross profit also saw a notable rise, increasing to $323.9 million, up 22.9% from $263.5 million, resulting in a gross margin improvement to 33.4% from 32.5%.

In terms of expenses, Five Below's cost of goods sold rose to $646.6 million, reflecting a 17.9% increase attributed to higher merchandise costs associated with increased sales and new store openings. Selling, general, and administrative expenses, including depreciation and amortization, increased to $273.1 million, up 20.1% from the previous year, primarily due to higher store-related expenses and corporate costs. Consequently, net income for the quarter was $41.1 million, a 30.8% increase from $31.5 million in the prior year.

Operationally, Five Below expanded its footprint, operating 1,826 stores across 44 states as of May 3, 2025, up from 1,605 stores a year earlier. The company plans to continue its growth strategy, with expectations to open approximately 150 new stores in fiscal 2025. The increase in store count and the successful launch of new products contributed to a 6.2% rise in transaction volume and a 0.9% increase in the average transaction value during the quarter.

The company’s liquidity position remains strong, with cash and cash equivalents totaling $427.5 million, up from $96.3 million a year ago. Five Below has no outstanding borrowings under its $225 million revolving credit facility, which provides additional financial flexibility. The company anticipates capital expenditures of approximately $210 million to $230 million in fiscal 2025, primarily for new store openings and infrastructure investments.

Looking ahead, Five Below remains optimistic about its growth trajectory, emphasizing its commitment to expanding its store base and enhancing its product offerings. The company is focused on navigating market challenges, including inflation and supply chain disruptions, while leveraging its strong cash position to support ongoing operations and strategic initiatives.