Five Below, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1.286 billion for the thirteen weeks ended May 2, 2026, a 32.5% increase from $970.5 million in the same period last year. This surge in revenue was driven by a 22.7% increase in comparable sales, which was attributed to a rise in both transaction volume and average transaction value. The company's operating income also saw a substantial rise, climbing to $154.2 million from $50.8 million, while net income nearly tripled to $123.1 million compared to $41.1 million in the prior year.
The company's cost of goods sold increased to $807.0 million, reflecting a 24.8% rise due to higher merchandise costs associated with increased sales and new store openings. Despite this, gross profit surged to $478.6 million, resulting in a gross margin improvement to 37.2%, up from 33.4% a year earlier. This increase in gross margin was primarily due to lower store occupancy and distribution costs as a percentage of net sales, as well as a reduction in inventory shrinkage.
In terms of operational developments, Five Below expanded its footprint, operating 1,970 stores across 46 states as of May 2, 2026, up from 1,826 stores a year prior. The company opened 48 new store leases during the quarter, with an average lease term of approximately 10 years. The increase in store count contributed to a 22.7% rise in comparable sales, driven by a combination of increased customer traffic and higher average transaction values.
Looking ahead, Five Below plans to invest between $230 million and $250 million in capital expenditures for fiscal 2026, primarily to support the opening of approximately 150 new stores. The company expects to fund these expenditures through cash generated from operations and its available line of credit, which had approximately $214 million available as of the end of the reporting period. Management remains optimistic about future growth, citing strong operational performance and a solid cash position to support ongoing expansion efforts.
About FIVE BELOW, INC
Five Below, Inc. is a high-growth value retailer offering trend-right, high-quality products primarily priced at $5 or below. Serving tweens, teens, and beyond, it operates stores across the U.S. in shopping centers and online. Its core strengths include a dynamic merchandise mix, engaging shopping environment, and efficient store and distribution models, focusing on affordability, rapid trend response, and a fun, experience-driven retail concept.
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