Five Below 2026 Q3 Earnings Net Income Surges 2063.9% to $36.51M

Five Below(FIVE), ranking by market capitalization, reported its fiscal 2026 Q3 earnings on Dec 04th, 2025. The company delivered a standout performance, with revenue rising 23.1% year-over-year to $1.04 billion and EPS surging 2100% to $0.66. The guidance for fiscal 2025 was raised, reflecting confidence in sustained momentum. CEO Winifred Park highlighted robust execution of customer-centric strategies and store expansion as key drivers of growth.

Revenue

Leisure led with $446.68 million in revenue, followed by Fashion and home at $332.50 million. Snack and seasonal contributed $259.11 million, rounding out the total to $1.04 billion. This diversified performance underscores the company’s ability to capitalize on cross-category demand.

Earnings/Net Income

Five Below’s EPS surged 2100% to $0.66, while net income jumped 2063.9% to $36.51 million. This represents a remarkable 2100% increase, underscoring the company’s strong profitability.

Post-Earnings Price Action Review

The stock price of Five Below gained 4.45% during the latest trading day, 0.88% in the most recent full week, and 6.30% month-to-date. Analysts and investors reacted positively to the results, with price targets raised by multiple firms, including Bernstein ($173), Mizuho ($165), and UBS ($210). The company’s ability to exceed consensus estimates and raise guidance bolstered market confidence.

CEO Commentary

CEO Winifred Park emphasized the team’s execution of a customer-centric strategy, noting strong sales growth, new store openings, and improved merchandising. She expressed optimism about the holiday season, highlighting the company’s unique value proposition and preparedness to meet seasonal demand.

Guidance

For Q4 2025, Five Below projects revenue of $1.58–$1.61 billion and adjusted EPS of $3.36–$3.54. Full-year 2025 revenue is forecast at $4.62–$4.65 billion, with adjusted EPS of $5.71–$5.89. The company anticipates opening 150 new stores by year-end, reflecting its expansion ambitions.

Additional News

In the three weeks following the earnings report, Five Below saw significant analyst activity. Bernstein raised its price target to $173, while Mizuho and UBS set targets at $165 and $210, respectively. The company also announced plans to disband its "Five Beyond" concept, focusing instead on in-store product flow. Additionally, Five Below introduced a loyalty program pilot, offering discounts to email receipt sign-ups to enhance customer data collection.

Key Drivers

• Store Expansion: 49 new stores opened in Q3, bringing total locations to 1,907.

• Merchandising Shifts: Emphasis on licensed products, collectibles, and seasonal items.

• Digital Marketing: Enhanced digital and social campaigns drove traffic and engagement.

Challenges

• Tariff Pressures: Unmitigated tariffs may impact gross margins in 2026.

• Comparative Growth: Sustaining 14.3% comps next year amid tougher comparisons.

Analyst Outlook

UBS and Jefferies remain bullish, citing scalable operations and trend-driven assortments. Despite short-term margin pressures, long-term growth potential is intact.

Conclusion

Five Below’s Q3 results reflect exceptional execution and strategic clarity. With upgraded guidance and analyst optimism, the company is well-positioned to capitalize on holiday demand and long-term expansion opportunities. Investors should monitor tariff impacts and competitive dynamics in 2026.