Five Below Reports 23.7% Revenue Growth to $1.03 Billion in Latest Quarter

Five Below, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1,026.8 million for the thirteen weeks ended August 2, 2025, a 23.7% increase from $830.1 million in the same period last year. The company's net income also rose to $42.8 million, up 29.6% from $33.0 million in the prior year. For the twenty-six weeks ended August 2, 2025, net sales totaled $1,997.4 million, reflecting a 21.6% increase compared to $1,641.9 million for the same period in 2024. The growth in revenue was attributed to both an increase in comparable sales, which rose by 12.4%, and a significant contribution from new store openings.

The company experienced a notable increase in its cost of goods sold, which rose to $684.5 million for the thirteen weeks ended August 2, 2025, compared to $558.3 million in the previous year. This increase was primarily driven by higher merchandise costs associated with increased sales and occupancy costs from new store openings. Despite the rise in costs, Five Below's gross profit increased to $342.4 million, resulting in a gross margin of 33.3%, up from 32.7% in the prior year. Selling, general, and administrative expenses also increased, totaling $290.0 million, which was attributed to higher store-related and corporate expenses.

Operationally, Five Below expanded its footprint, operating 1,858 stores across 44 states as of August 2, 2025, up from 1,667 stores a year earlier. The company opened 51 new store leases during the quarter, with an average lease term of approximately 10 years. The increase in store count contributed to a 12.4% rise in comparable sales, driven by an increase in transaction volume and average transaction value. The company also reported a significant increase in cash and cash equivalents, which rose to $562.7 million from $209.0 million a year prior, reflecting strong cash flow from operations.

Looking ahead, Five Below plans to continue its expansion strategy, with projected capital expenditures of approximately $210 million for fiscal 2025, primarily to support the opening of around 150 new stores. The company expects to fund these expenditures through cash generated from operations and its available line of credit, which currently stands at approximately $225 million. Management remains optimistic about future growth, citing a strong cash position and the potential for continued increases in both store count and sales performance.