Five Below FIVE 2026Q2 Earnings Preview Upside Ahead on Store Expansion

Generated by AI AgentAinvestweb
Sunday, Aug 24, 2025 10:15 pm ET1min read
Forward-Looking Analysis
Analysts expect to report Q2 2025 earnings with a consensus EPS forecast of $0.62, up from $0.54 in the same quarter last year. Based on Q1 2025 guidance and results, the company anticipates Q2 2025 sales between $975 million and $995 million, with comparable sales growth of 7% to 9%. The full fiscal year 2025 guidance projects sales of $4.33–$4.42 billion and adjusted EPS of $4.25–$4.72. Analysts have a “Moderate Buy” rating based on 17 analyst ratings. The company plans to open approximately 150 new stores and continue inventory optimization.

Historical Performance Review
In 2026Q1, Five Below reported revenue of $970.53 million, a 19.5% increase year-over-year. Net income reached $41.15 million, with an EPS of $0.75. Gross profit totaled $323.91 million, reflecting improved inventory management and adjusted gross margin growth.

Additional News
Five Below announced a strong Q1 2025 performance, with sales of $971 million and adjusted EPS of $0.86, exceeding estimates. The company opened 55 new stores and improved gross margins by 140 basis points to 33.8%. It raised full-year 2025 sales and EPS guidance due to strong demand and operational efficiencies. The company plans to open 150 new stores and invest in systems and infrastructure with capital expenditures of $210–$230 million.

Summary & Outlook
Five Below’s strong Q1 2025 results and raised guidance highlight its momentum in store expansion and inventory optimization. Revenue and EPS growth, along with improved gross margins, indicate solid operational health. The company’s focus on new store openings and pricing strategy supports continued growth. While tariffs and executive changes remain headwinds, Five Below’s strategic initiatives position it for upside. With a “Moderate Buy” rating and positive guidance, the outlook is bullish, though execution on expansion and cost management will be key to sustaining this trajectory.

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