Five Below Reports 22.9% Revenue Growth to $1.26 Billion in Latest Quarter

Five Below, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1.26 billion for the thirteen weeks ended August 1, 2026, a 22.9% increase from $1.03 billion in the same period last year. The company's net income surged to $221.4 million, up 417.7% from $42.8 million in the prior year, driven by a combination of increased sales and a notable pre-tax benefit of $169.5 million related to IEEPA tariff refunds. This financial performance reflects a strong operational strategy and effective cost management, with gross profit rising to $612.4 million, resulting in a gross margin of 48.5%, compared to 33.3% a year earlier.

In the twenty-six weeks ended August 1, 2026, Five Below's net sales also increased to $2.55 billion, a 27.5% rise from $2.00 billion in the previous year. The comparable sales growth was 18.3%, attributed to a 15.9% increase in transaction volume and a 2.0% rise in average transaction value. The company opened 164 new stores, bringing its total to 2,022 locations across 46 states, which contributed to the increase in non-comparable sales.

Operationally, Five Below has focused on expanding its store footprint and enhancing its product offerings. The company has committed to opening approximately 150 new stores in fiscal 2026, with capital expenditures projected between $250 million and $260 million. The increase in selling, general, and administrative expenses to $337.1 million for the latest quarter was primarily due to higher store-related costs associated with this expansion. However, as a percentage of net sales, these expenses decreased to 26.7%, indicating improved operational efficiency.

The company’s balance sheet remains strong, with total assets of $5.28 billion as of August 1, 2026, and no outstanding borrowings under its $225 million revolving credit facility. Cash and cash equivalents stood at $561.1 million, down from $723.7 million at the beginning of the fiscal year, reflecting the company's investment in growth initiatives. Five Below's strategic focus on value-driven products and customer engagement continues to position it favorably in the competitive retail landscape.

Looking ahead, Five Below anticipates continued growth driven by its expansion strategy and the introduction of new merchandise. The company remains optimistic about its ability to navigate market challenges, including inflation and supply chain disruptions, while maintaining its commitment to delivering value to customers. The management's outlook suggests a focus on leveraging its strong financial position to support ongoing growth initiatives and enhance shareholder value through a newly approved share repurchase program of up to $600 million.