How did Five Below's revenue and expenses trend in Q4 2025?

Five Below's revenue and expenses in Q4 2025 showed notable trends:

1. **Revenue Trend**: Five Below's net sales increased by 7.8% in Q4 2025, reaching $1.39 billion. This growth was primarily driven by the company's store expansion and a focus on introducing newer, trend-right, value-driven products. Despite the positive revenue growth, comparable sales decreased by 3.0% in the quarter, indicating challenges in same-store performance.
2. **Expense Trend**: The company's adjusted operating income for Q4 2025 was $253.3 million, representing a decrease of 1.5% when excluding the impact of the 53rd week in fiscal 2023. This decline in operating income was partly offset by a lower effective tax rate, which improved to 25.2% from 25.8% in the previous year. Net income for the quarter was $187.5 million, down from $202.2 million in the same quarter of fiscal 2023, excluding the 53rd week impact.

In summary, Five Below experienced revenue growth in Q4 2025, driven by new store openings and strategic product initiatives, but faced challenges in same-store performance and slightly lower operating income compared to the previous year.