Five Below Delivers Double-Digit Growth and Sets Sights on Expansion After Transformational Year
Fourth Quarter and Full Year Results Highlight Robust Growth and Profitability
Five Below posted a standout fourth quarter, reporting net sales of $1.73 billion—a 24.3% jump year-over-year—and a 15.4% surge in comparable sales. Diluted earnings per share rose to $4.28, up 26.3% from the prior year, while adjusted EPS climbed 23.9% to $4.31. For fiscal 2025, net income saw a substantial increase of 40.7% to $358.64 million, underlining the brand's growing financial strength.
This performance capped a year when Five Below opened 150 net new stores, expanding its footprint to 1,921 locations across 46 states—a store count growth of 8.5%. CEO Winnie Park credited the results to disciplined execution of customer-centric strategies, trend-driven product offerings, and operational improvements.
Store Expansion and Margin Improvement Fuel Shareholder Value
Annual net sales rose by 22.9% to $4.76 billion, with comparable sales increasing 12.8%. Boosted by over 1,900 stores and consistent traffic gains, Five Below demonstrated operational efficiency with adjusted operating income climbing to $472.42 million for the year, a 32.7% improvement over 2024. Adjusted diluted earnings per share reached $6.67, up 32.3%.
These results reflect not just revenue growth, but also enhanced profitability and scale, as the company continues investing in new stores and omnichannel capabilities.
| Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 |
|---|---|---|---|---|
| Net Sales | $1.73B | $1.39B | $4.76B | $3.88B |
| Comparable Sales Growth | 15.4% | - | 12.8% | - |
| Adjusted Diluted EPS | $4.31 | $3.48 | $6.67 | $5.04 |
| Net Income | $238.23M | $187.46M | $358.64M | $253.61M |
| Stores (End of Period) | 1,921 | 1,771 | 1,921 | 1,771 |
Strong Balance Sheet Supports Store Growth and Capital Deployment
Five Below exited fiscal 2025 with $723.70 million in cash and cash equivalents, up from $331.72 million a year earlier. Inventories increased to $846.61 million, aligning with the company’s larger store footprint and anticipated growth. Shareholders' equity climbed to $2.19 billion from $1.81 billion, reflecting retained earnings and capital from expansion efforts.
Outlook: Continued Growth and Expansion on the Horizon
Looking ahead, Five Below expects first-quarter net sales between $1.18 billion and $1.20 billion and projects a 14-16% increase in comparable sales. For the full year fiscal 2026, the company guides for $5.20-$5.30 billion in net sales, with plans to open around 150 new stores and grow adjusted diluted EPS to a range of $7.74 to $8.25.
| Fiscal 2026 Guidance | Q1 Outlook | Full Year Outlook |
|---|---|---|
| Net Sales | $1.18B - $1.20B | $5.20B - $5.30B |
| Adjusted Net Income | $88M - $94M | $431M - $459M |
| Adjusted Diluted EPS | $1.57 - $1.69 | $7.74 - $8.25 |
| New Stores Planned | ~45 | ~150 |
Key Takeaway: Momentum Backed by Expansion and Margin Upside
Five Below’s strong double-digit performance, expanding store base, and upbeat outlook for sales and earnings position it as a notable retail growth story. Investors looking for retail names showing profit improvement, cash strength, and a clear expansion roadmap will find Five Below’s strategy and financial trajectory compelling.
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