Five Below 2026 Q2 Earnings Strong Performance as Net Income Surges 29.6%

Five Below (FIVE) reported its fiscal 2026 Q2 earnings on Aug 28th, 2025. The company exceeded expectations, with revenue and earnings growth outpacing forecasts, and raised its full-year guidance, reflecting confidence in the holiday season and strategic pricing.

Revenue
Five Below’s total revenue surged by 23.7% year-over-year to $1.03 billion in the second quarter of 2026, with strong performance across all segments. The Leisure division led the way with $470.46 million, driven by curated product offerings and enhanced in-store availability. Fashion and Home followed closely with $309.30 million, benefiting from simplified pricing and customer-focused assortments. Meanwhile, the Snack and Seasonal segment contributed $247.09 million, supported by strategic marketing and product innovation.

Earnings/Net Income
The company’s earnings per share (EPS) increased by 30.0% to $0.78 in 2026 Q2, compared to $0.60 in the prior year period, while net income grew 29.6% to $42.76 million from $33 million in 2025 Q2. These results indicate robust profitability and continued execution of the company’s operational improvements.

Price Action
Despite a 0.13% dip in the latest trading day, Five Below’s stock has gained 5.82% over the past full week and 7.62% month-to-date, reflecting strong investor confidence.

Post-Earnings Price Action Review
A strategy of buying the top five stocks by revenue growth following a revenue beat and selling after 30 days yielded a 122.31% return, far outpacing the benchmark’s 81.66% return. The approach demonstrated effective risk management with a maximum drawdown of 0.00%, a Sharpe ratio of 0.75, and volatility of 23.54%, underscoring the strength of the company’s financial performance.

CEO Commentary
CEO Winifred Y. Park praised the quarter’s results, noting the company’s achievement of nearly 24% sales growth and crossing the $1 billion revenue threshold outside of the fourth quarter. She emphasized the success of strategies such as simplified pricing, curated product offerings, and improved in-stock levels. Park also highlighted the brand’s role in appealing to “the kid and all of us,” with a focus on customer-centric innovation and holiday-driven marketing.

Guidance
Interim CFO Ken Bull provided forward-looking guidance for Q3 2025, expecting revenue between $950 million and $970 million with 5-7% comp sales growth, and adjusted EPS of $0.12 to $0.24. For the full year, the company anticipates revenue of $4.44 billion to $4.52 billion, a 5-7% comp sales increase, and adjusted EPS of $4.76 to $5.16. Capital expenditures are forecast at $210 million to support 150 net new store openings and systems upgrades.

Additional News
Five Below raised its full-year revenue outlook to $4.44 billion to $4.52 billion, up from its previous forecast of $4.33 billion to $4.42 billion, citing strong same-store sales growth and new store openings. CEO Winnie Park highlighted the company’s efforts to simplify pricing and enhance product availability, including a focus on pricing most items at $1, $2, $3, $4, and $5, to improve the customer experience. The company also emphasized optimism around the Halloween and holiday seasons, positioning itself for a strong fall shopping period. As U.S. tariffs continue to impact the retail sector, Five Below remains confident in its ability to deliver value to customers and drive sustainable growth.