Five Below reported fourth‑quarter 2025 revenue of $1.73 billion, up 24.3% year‑over‑year, and adjusted earnings per share of $4.31, a 23.9% increase over the prior year’s $3.48 EPS. The company’s adjusted EPS beat consensus estimates of $3.99 by $0.32, driven by disciplined cost control and a higher mix of high‑margin merchandise that offset temporary tariff‑related cost pressures.
Comparable‑sales grew 15.4% year‑over‑year, supported by robust holiday demand and a broadened product mix that included more items priced above $5. The company’s gross margin expanded to 40.3% from 40.1% in the prior year, while operating margin rose to 18.1% from 18.0%, reflecting the benefit of fixed‑cost leverage and improved inventory management.
Management raised fiscal 2026 guidance, projecting net sales of $5.20 billion to $5.30 billion and adjusted EPS of $7.74 to $8.25. The upward revision signals confidence in sustained demand, the effectiveness of the company’s expansion strategy, and the continued success of its new store openings and merchandising initiatives.
"Our outstanding fourth quarter results capped off a transformational year that firmly established Five Below as THE destination for the Kid and the Kid in all of us. These exceptional, broad‑based results reflect our Crew's amazing execution of our customer‑centric strategy and demonstrate the progress we've made building a stronger, more agile brand," said CEO Winnie Park. "Looking ahead, we are focused on delivering trend‑right merchandise at exceptional value, deepening our connectivity with our customers, and providing amazing shopping experiences that delight our customers. With a growing store base, strong new store performance, and a differentiated customer value proposition, we believe we are well positioned to drive sustainable sales growth, margin expansion, and long‑term shareholder value."
Five Below’s results come amid a broader retail environment where discount retailers are expanding price points beyond $5 and leveraging social‑media‑driven marketing. The company’s plan to open approximately 150 net new stores in fiscal 2026, bringing the total to over 2,000, is expected to further accelerate revenue growth and support the company’s margin expansion strategy.
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