Five Below, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1,038.3 million for the thirteen weeks ended November 1, 2025, a 23.1% increase from $843.7 million in the same period last year. The company's net income surged to $36.5 million, compared to just $1.7 million in the prior year, reflecting a substantial increase in profitability. For the thirty-nine weeks ended November 1, 2025, net sales also rose to $3,035.7 million, up 22.1% from $2,485.6 million, with net income increasing by 82% to $120.4 million from $66.2 million.

The growth in revenue was driven by a 14.3% increase in comparable sales, attributed to a rise in both transaction volume and average transaction value. The company opened 28 new stores during the quarter, contributing to a non-comparable sales increase of $80.8 million. As of November 1, 2025, Five Below operated 1,907 stores across 44 states, up from 1,749 stores a year earlier, indicating a continued expansion strategy.

Cost of goods sold (COGS) also increased, rising to $686.9 million for the quarter, up 17.3% year-over-year, primarily due to higher merchandise costs associated with increased sales and new store openings. However, gross profit improved significantly, reaching $351.4 million, with a gross margin of 33.8%, up from 30.6% in the previous year. This improvement was attributed to a decrease in merchandise costs as a percentage of sales and lower inventory shrinkage.

In terms of operational metrics, the company reported a cash position of $350.9 million as of November 1, 2025, an increase from $169.7 million a year prior. Five Below's selling, general, and administrative expenses rose to $308.1 million, but as a percentage of net sales, these expenses decreased to 29.7%. The company also noted an effective tax rate of 25.7% for the quarter, up from 23.4% in the prior year, primarily due to non-deductible expenses.

Looking ahead, Five Below plans to continue its expansion, with an estimated $200 million in capital expenditures for fiscal 2025, primarily for new store openings and infrastructure improvements. The company remains optimistic about its growth trajectory, supported by strong cash flows and a robust line of credit, which had approximately $220 million available as of the latest reporting date.

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.

This description was generated via AI from an annual report. Updated 8 months ago.

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