Five Below (NASDAQ:FIVE) Releases Earnings Results, Beats Expectations By $0.28 EPS

Five Below (NASDAQ:FIVE) announced its earnings results on Wednesday. The specialty retailer reported $1.68 EPS for the quarter, beating the consensus estimate of $1.40 by $0.28, FiscalAI reports. Five Below had a return on equity of 21.31% and a net margin of 8.67%.The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the business posted $0.81 earnings per share. Five Below’s revenue was up 22.9% compared to the same quarter last year. Five Below updated its Q3 2026 guidance to 1.010-1.130 EPS and its FY 2026 guidance to 9.830-10.310 EPS.

Here are the key takeaways from Five Below’s conference call:

• Second-quarter results significantly exceeded expectations: Sales rose 23% to $1.3 billion, comparable sales increased 14%, and adjusted EPS more than doubled to $1.68. Growth was supported by strong traffic and transactions across customer cohorts, geographies, and product categories.
• Five Below raised its full-year fiscal 2026 outlook, projecting 19% sales growth at the midpoint, 10%–12% comparable-sales growth, adjusted operating margin of approximately 12.5%, and adjusted EPS of $10.07, up 51% year over year.
• Profitability improved materially: Adjusted gross margin expanded 220 basis points to 35.6% and adjusted operating margin increased 360 basis points to 9%, driven by merchandise-margin gains, fixed-cost leverage, and improved shrink performance.
• Management emphasized continued growth opportunities from its merchandising, social-media marketing, store-experience initiatives, and disciplined real-estate strategy. The company opened 52 net new stores in the quarter, plans 115 openings for the year, and announced an initial Puerto Rico entry in the second half of 2027.
• Higher fuel costs remain a margin headwind, while tariff benefits are expected to be limited in the second half and could partially reverse in 2027 as certain tariff rates rise. Management also noted that holiday execution, store capacity, and omni-channel labor requirements remain important variables.

Five Below Stock Performance

Shares of FIVE opened at $243.08 on Thursday. The company has a market capitalization of $13.44 billion, a PE ratio of 30.69, a PEG ratio of 1.27 and a beta of 0.99. The company’s 50 day moving average price is $215.71 and its 200 day moving average price is $217.34. Five Below has a 52 week low of $137.77 and a 52 week high of $263.88.

Institutional Investors Weigh In On Five Below

A number of institutional investors have recently modified their holdings of FIVE. Pacer Advisors Inc. raised its holdings in shares of Five Below by 24.1% during the fourth quarter. Pacer Advisors Inc. now owns 8,993 shares of the specialty retailer’s stock worth $1,694,000 after acquiring an additional 1,748 shares in the last quarter. Invesco Ltd. grew its stake in Five Below by 108.0% in the fourth quarter. Invesco Ltd. now owns 886,154 shares of the specialty retailer’s stock valued at $166,916,000 after purchasing an additional 460,112 shares in the last quarter. Corient Private Wealth LLC increased its position in Five Below by 2,952.0% in the 4th quarter. Corient Private Wealth LLC now owns 151,073 shares of the specialty retailer’s stock worth $28,456,000 after purchasing an additional 146,123 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its position in Five Below by 112.0% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,556 shares of the specialty retailer’s stock worth $3,307,000 after purchasing an additional 9,275 shares during the last quarter. Finally, Virtue Capital Management LLC raised its stake in shares of Five Below by 25.7% during the 4th quarter. Virtue Capital Management LLC now owns 6,810 shares of the specialty retailer’s stock worth $1,317,000 after purchasing an additional 1,391 shares in the last quarter.

Analyst Ratings Changes

FIVE has been the subject of several recent analyst reports. Citigroup upgraded shares of Five Below from a “hold” rating to a “buy” rating in a report on Thursday, August 13th. BMO Capital Markets began coverage on shares of Five Below in a report on Tuesday, July 21st. They set an “outperform” rating on the stock. Guggenheim decreased their price objective on shares of Five Below from $260.00 to $250.00 and set a “buy” rating for the company in a research note on Monday, June 8th. The Goldman Sachs Group cut shares of Five Below from a “buy” rating to a “sell” rating in a research report on Thursday, August 13th. Finally, Morgan Stanley lowered Five Below from an “equal weight” rating to an “underweight” rating in a report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $267.45.

Five Below News Roundup

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Results exceeded expectations. Fiscal Q2 adjusted EPS was $1.68 versus the $1.40 consensus estimate, while revenue rose 22.9% year over year to $1.26 billion, ahead of the $1.22 billion forecast. Comparable sales increased 14.1%, signaling strong customer traffic and merchandising momentum. Five Below Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its full-year outlook. Five Below now expects fiscal 2026 sales of approximately $5.63 billion to $5.71 billion, up from its prior $5.40 billion-$5.48 billion forecast, and issued third-quarter adjusted EPS guidance of $1.01-$1.13, above the $0.86 consensus. Full-year adjusted EPS guidance was set at $9.83-$10.31. Five Below Fiscal 2026 Outlook
• Positive Sentiment: Share repurchase authorization supports the stock. The company announced a new $600 million buyback plan, which could reduce shares outstanding and provide additional earnings-per-share support. Five Below also opened 52 net new stores during the quarter, ending with 2,022 locations. Five Below Unveils Share Repurchase Plan
• Positive Sentiment: Analyst sentiment strengthened. William Blair reaffirmed a Buy rating with long-term upside toward $300, while Bank of America reiterated Buy and raised its price target to $340, citing sustained comparable-sales growth and potential margin upside. Bank of America Raises Five Below Price Target
• Neutral Sentiment: Investor positioning is mixed. Some institutional investors increased holdings while others reduced positions, creating no clear fund-flow signal.
• Negative Sentiment: Insider selling and valuation may limit gains. Several insiders sold shares over the past six months, and the stock trades at roughly 31 times earnings, leaving limited room for disappointment after its strong run.

About Five Below

Five Below, Inc (NASDAQ:FIVE) is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.