Core Insights - Five Below, Inc. (FIVE) reported strong second-quarter fiscal 2025 results, with both net sales and earnings exceeding expectations and showing year-over-year growth. The company has raised its fiscal 2025 outlook [1][9]. Financial Performance - Adjusted earnings per share for Q2 were 81 cents, surpassing the Zacks Consensus Estimate of 61 cents, and reflecting a 50% increase from 54 cents in the same quarter last year [2]. - Net sales reached $1.03 billion, marking a 23.7% year-over-year increase and exceeding the Zacks Consensus Estimate of $997 million [2][9]. - Comparable sales increased by 12.4% year over year, driven by an 8.7% rise in comparable transactions and a 3.4% increase in average ticket size [3]. Margins and Costs - Adjusted gross profit grew by 26.2% year over year to $343.3 million, with an adjusted gross margin of 33.4%, up approximately 60 basis points from the previous year [4]. - Selling, general and administrative (SG&A) costs rose by 28.3% to $242.3 million, with SG&A as a percentage of net sales increasing by about 90 basis points to 23.6% [5]. - Adjusted operating income was $55.1 million, compared to $37 million in Q2 of fiscal 2024, with an adjusted operating margin of 5.4%, up approximately 90 basis points [5]. Financial Snapshot - As of the end of Q2, the company had cash and cash equivalents of $562.7 million and short-term investment securities of $107.4 million, with total shareholders' equity at $1.91 billion [6]. Store Expansion - Five Below opened 32 net new stores, bringing the total to 1,858 stores across 44 states, representing an 11.5% increase from the same quarter last year. The company plans to open 150 stores by the end of fiscal 2025 [7]. Future Guidance - For Q3 fiscal 2025, Five Below anticipates net sales between $950 million and $970 million, reflecting a 5-7% increase compared to $843.7 million in Q3 fiscal 2024 [8]. - The updated fiscal 2025 outlook projects net sales of $4.44-$4.52 billion, an increase from the previous guidance of $4.33-$4.42 billion, with adjusted earnings per share expected to be $4.76-$5.16 [15][18]. - Net income is forecasted between $253 million and $275 million, with adjusted net income projected between $264 million and $286 million, both reflecting upward adjustments from previous estimates [17].

Financial Data and Key Metrics Changes - Total sales increased by 23.7% to $1,027 million from $830 million in the second quarter of the previous year [18] - Comparable sales rose by 12.4%, driven by an increase in comparable transactions of 8.7% and a comparable ticket increase of 3.4% [19] - Adjusted EPS increased by 50% to $0.81 compared to $0.54 in the previous year [21] - Adjusted gross profit was $340.3 million, a 26% increase year-over-year, with adjusted gross margin rising by approximately 70 basis points to 33.4% [20] Business Line Data and Key Metrics Changes - The company opened 32 net new stores, ending the quarter with 1,858 stores, an increase of 191 stores or 11.5% year-over-year [19] - New stores generated productivity at target levels, which is in the mid-eighty percent range [19] - The majority of items outside of the candy category are now priced at $1, $2, $3, $4, and $5, with selective assortments above $5 [12][13] Market Data and Key Metrics Changes - Inventory at the end of the second quarter was approximately $800 million, compared to $640 million at the end of the second quarter last year, reflecting a 12% increase in average inventory per store [21][22] - The company expects elevated inventory levels at the end of the third quarter due to continued acceleration of receipts [22] Company Strategy and Development Direction - The company aims to be a gift destination for America, focusing on holiday assortments and creating a holiday moment for customers [31] - There is a commitment to providing unique, trend-right, quality products at amazing price points, with a focus on simplifying the shopping experience [12][13] - The company is diversifying its sourcing strategies and looking to optimize inventory availability in response to global trade shifts [88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's position heading into the fall, with exciting plans for Halloween and the holiday season [16] - The company is focused on controlling controllables and mitigating risks while driving sales through executional excellence [16] - Management noted that customer response to pricing strategies has been positive, with a focus on delivering extreme value [40] Other Important Information - The company is increasing its full-year sales guidance to a range of $4,440 million to $4,520 million, reflecting better-than-expected performance in the second quarter [25] - Adjusted diluted earnings per share for the full year are expected to be in the range of $4.76 to $5.16 [26] Q&A Session Summary Question: Can you expand upon the assortment for the holiday season? - Management is excited about the holiday assortments, focusing on gifting and holiday decor, and will communicate product availability to customers [30][31] Question: What is driving the current comp sales momentum? - The company sees good comp momentum across six out of eight worlds, indicating less reliance on single trends [38] Question: How is the company addressing the impact of tariffs? - Management noted that customer response to pricing adjustments has been positive, and they are focused on delivering extreme value [40] Question: What is the strategy for new store growth? - The company believes there is still significant white space in the market and is being selective in new store openings [52] Question: How is the company managing shrink? - The company is conducting physical inventory counts and implementing initiatives to manage shrink effectively [85] Question: What is the outlook for sourcing strategies into 2026? - The company is diversifying its source base and maintaining agility in its supply chain to respond to global trade conditions [88]

Financial Data and Key Metrics Changes - Total sales increased by 23.7% to $1,027 million from $830 million in the second quarter of the previous year [15] - Adjusted EPS rose by 50% to $0.81 compared to $0.54 in the same quarter last year [18] - Adjusted gross profit was $340.3 million, a 26% increase year-over-year, with adjusted gross margin rising by approximately 70 basis points to 33.4% [17] Business Line Data and Key Metrics Changes - Comparable sales increased by 12.4%, driven by an 8.7% increase in transactions and a 3.4% increase in ticket size [16] - The company opened 32 net new stores, bringing the total to 1,858, an increase of 191 stores or 11.5% year-over-year [16] Market Data and Key Metrics Changes - Inventory at the end of the second quarter was approximately $800 million, up from $640 million a year ago, reflecting a 12% increase in average inventory per store [18][19] - The company expects elevated inventory levels at the end of the third quarter due to continued acceleration of receipts [19] Company Strategy and Development Direction - The company aims to be a gift destination for America, focusing on holiday assortments and leveraging both front and back store displays [28] - Simplification of pricing to whole price points has been implemented to enhance the shopping experience [10][11] - The company is committed to providing unique, trend-right products at amazing price points, with a focus on value despite industry-wide price increases due to tariffs [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into the fall, with exciting plans for Halloween and the holiday season [13] - The company is focused on controlling risks and driving sales through executional excellence in a changing tariff environment [13] - Management noted that customer response to pricing adjustments has been positive, indicating a strong value proposition [38] Other Important Information - The company is diversifying its sourcing strategies and focusing on agility in response to global trade dynamics [83] - The company plans to open approximately 50 net new stores in the third quarter [19] Q&A Session Summary Question: Holiday assortment plans and Q4 guidance - Management is excited about holiday assortments and plans to create a holiday moment for customers, emphasizing gifting and decor [28][30] Question: Sustainability of comp sales growth - Management noted that comp momentum is strong across multiple product categories, reducing reliance on single trends [36] Question: New store productivity and growth - New store productivity is above 90%, and the company sees potential for reaccelerating store growth [49] Question: Impact of tariffs on gross margin - Management clarified that the impact of tariffs is lower than previously expected due to effective pricing adjustments and customer response [57][68] Question: Strategies for managing shrink and sourcing - The company is conducting physical inventory counts to manage shrink and is focused on accelerating receipts to ensure product availability [80][82]

Five Below shares gained after the low-cost retailer raised its fiscal year estimates on demand for budget-friendly trendy goods in a shaky economy https://t.co/dOhCreak8I ...

[News Release Highlights](index=1&type=section&id=1.%20News%20Release%20Highlights) Five Below reports strong financial performance for Q2 and YTD FY2025, exceeding expectations and raising full-year guidance [Second Quarter Fiscal 2025 Performance Overview](index=1&type=section&id=1.1.%20Second%20Quarter%20Fiscal%202025%20Performance%20Overview) Five Below, Inc. reported strong Q2 FY2025 financial results, exceeding sales and earnings expectations and raising full-year guidance - Q2 net sales increased by **23.7%** to **$1.0268 billion**, with comparable sales growing by **12.4%**[1](index=1&type=chunk)[5](index=5&type=chunk) - Q2 GAAP diluted EPS was **$0.77**, and adjusted diluted EPS was **$0.81**[1](index=1&type=chunk)[5](index=5&type=chunk) - The company raised its full-year fiscal 2025 sales and EPS guidance[1](index=1&type=chunk) [Year-to-Date Fiscal 2025 Performance Overview](index=1&type=section&id=1.2.%20Year-to-Date%20Fiscal%202025%20Performance%20Overview) Five Below achieved year-to-date growth in net and comparable sales, with significant increases in operating and net income as of August 2, 2025 - Year-to-date net sales increased by **21.6%** to **$1.9974 billion**, with comparable sales growing by **9.8%**[6](index=6&type=chunk) - Year-to-date GAAP diluted EPS was **$1.52**, and adjusted diluted EPS was **$1.67**[7](index=7&type=chunk) [CEO Commentary and Strategic Focus](index=1&type=section&id=1.3.%20CEO%20Commentary%20and%20Strategic%20Focus) CEO Winnie Park affirmed the effectiveness of the company's strategy, emphasizing 'Wow! Newness' merchandise, simplified pricing, extreme value, and optimized product flow, with a focus on upcoming holiday seasons - CEO Winnie Park stated that Q2 results exceeded sales and earnings expectations, demonstrating the effectiveness of the company's strategy[3](index=3&type=chunk) - Company strategic priorities include curating **'Wow! Newness'** merchandise, simplifying pricing while maintaining **extreme value**, improving inventory levels, and optimizing product flow[3](index=3&type=chunk) - Future focus remains on the Halloween and critical holiday seasons, attracting customers with trendy products, exceptional value, and outstanding experiences[3](index=3&type=chunk) [Detailed Financial Results](index=1&type=section&id=2.%20Financial%20Results%20-%20Detailed) This section details Five Below's financial performance for Q2 and YTD fiscal 2025, including key GAAP and adjusted metrics [Second Quarter Fiscal 2025 Financial Results](index=1&type=section&id=2.1.%20Second%20Quarter%20Fiscal%202025%20Financial%20Results) Five Below achieved significant Q2 FY2025 financial growth, with substantial increases in net and comparable sales, and double-digit growth in operating and net income [Key Financial Metrics (GAAP & Adjusted)](index=1&type=section&id=2.1.1.%20Key%20Financial%20Metrics%20(GAAP%20%26%20Adjusted)) In Q2, the company achieved year-over-year growth in net sales, operating income, net income, and diluted EPS, with adjusted metrics showing stronger momentum Key Financial Data for Second Quarter Fiscal 2025 | Metric | FY2025 Q2 (million USD) | FY2024 Q2 (million USD) | Year-over-Year Growth (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | **Net Sales** | 1,026.8 | 830.1 | 23.7% | | **Operating Income (GAAP)** | 52.4 | 41.5 | 26.3% | | **Adjusted Operating Income** | 55.1 | 37.0 | 48.9% | | **Net Income (GAAP)** | 42.8 | 33.0 | 29.7% | | **Adjusted Net Income** | 44.8 | 29.7 | 50.8% | | **Diluted EPS (GAAP)** | 0.77 | 0.60 | 28.3% | | **Adjusted Diluted EPS** | 0.81 | 0.54 | 50.0% | [Operational Highlights](index=1&type=section&id=2.1.2.%20Operational%20Highlights) In Q2, Five Below continued its store expansion strategy, opening 32 new stores and achieving strong comparable sales growth - The company opened **32 new stores**, totaling **1,858 stores** across **44 states** by quarter-end, representing **11.5% year-over-year growth** in store count[5](index=5&type=chunk) - Comparable sales increased by **12.4%**[5](index=5&type=chunk) [Year-to-Date Fiscal 2025 Financial Results](index=1&type=section&id=2.2.%20Year-to-Date%20Fiscal%202025%20Financial%20Results) Five Below maintained strong year-to-date financial performance as of August 2, 2025, with significant growth in net sales, operating income, and net income [Key Financial Metrics (GAAP & Adjusted)](index=2&type=section&id=2.2.1.%20Key%20Financial%20Metrics%20(GAAP%20%26%20Adjusted)) For the year-to-date period, the company achieved robust growth across all financial metrics, with adjusted indicators reflecting superior performance Key Financial Data for Year-to-Date Fiscal 2025 | Metric | FY2025 YTD (million USD) | FY2024 YTD (million USD) | Year-over-Year Growth (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | **Net Sales** | 1,997.4 | 1,641.9 | 21.6% | | **Operating Income (GAAP)** | 103.2 | 77.7 | 32.8% | | **Adjusted Operating Income** | 114.7 | 75.2 | 52.5% | | **Net Income (GAAP)** | 83.9 | 64.5 | 30.1% | | **Adjusted Net Income** | 92.3 | 62.6 | 47.4% | | **Diluted EPS (GAAP)** | 1.52 | 1.17 | 29.9% | | **Adjusted Diluted EPS** | 1.67 | 1.13 | 47.8% | [Operational Highlights](index=1&type=section&id=2.2.2.%20Operational%20Highlights) For the year-to-date period, the company continued its store expansion, though new store openings were slightly lower than the prior year, with comparable sales maintaining growth - The company opened **87 new stores**, compared to **123** in the prior fiscal year period[6](index=6&type=chunk) - Comparable sales increased by **9.8%**[6](index=6&type=chunk) [Financial Outlook](index=2&type=section&id=3.%20Financial%20Outlook) This section provides Five Below's financial guidance for the third quarter and full fiscal year 2025, including projected sales, comparable sales growth, and EPS [Third Quarter Fiscal 2025 Guidance](index=2&type=section&id=3.1.%20Third%20Quarter%20Fiscal%202025%20Guidance) The company projects Q3 FY2025 net sales between **$950 million** and **$970 million**, with comparable sales growth of **5% to 7%**, and adjusted diluted EPS between **$0.12** and **$0.24** Third Quarter Fiscal 2025 Financial Guidance | Metric | Range | | :----------------------- | :--------------------- | | **Net Sales** | $950 million to $970 million | | **Comparable Sales Growth** | 5% to 7% | | **New Store Openings** | Approximately 50 stores | | **Net Income (GAAP)** | $5 million to $12 million | | **Adjusted Net Income** | $7 million to $13 million | | **Diluted EPS (GAAP)** | $0.09 to $0.21 | | **Adjusted Diluted EPS** | $0.12 to $0.24 | - This guidance includes the anticipated impact of current tariffs and excludes any impact from share repurchases[8](index=8&type=chunk)[14](index=14&type=chunk) [Full Year Fiscal 2025 Guidance](index=2&type=section&id=3.2.%20Full%20Year%20Fiscal%202025%20Guidance) The company raised its full-year fiscal 2025 sales and EPS guidance, projecting net sales between **$4.44 billion** and **$4.52 billion**, with comparable sales growth of **5% to 7%** Full Year Fiscal 2025 Financial Guidance | Metric | Range | | :----------------------- | :--------------------- | | **Net Sales** | $4.44 billion to $4.52 billion | | **Comparable Sales Growth** | 5% to 7% | | **New Store Openings** | Approximately 150 stores | | **Net Income (GAAP)** | $253 million to $275 million | | **Adjusted Net Income** | $264 million to $286 million | | **Diluted EPS (GAAP)** | $4.56 to $4.96 | | **Adjusted Diluted EPS** | $4.76 to $5.16 | | **Total Capital Expenditures** | Approximately $210 million | - This guidance includes the anticipated impact of current tariffs and excludes any impact from share repurchases[8](index=8&type=chunk)[14](index=14&type=chunk) [Company Overview](index=3&type=section&id=4.%20Company%20Overview) This section provides an overview of Five Below, a high-growth value retailer, including its business model, product categories, and investor contact information [About Five Below](index=3&type=section&id=4.1.%20About%20Five%20Below) Five Below is a leading high-growth value retailer targeting teens and pre-teens, offering trendy, high-quality, and affordable products, with most items priced between **$1** and **$5** - Five Below is a high-growth value retailer offering trendy, high-quality products primarily for teens and pre-teens[16](index=16&type=chunk) - Most items are priced between **$1 and $5**, with some exceeding **$5**, across eight key categories[16](index=16&type=chunk) - Founded in **2002** and headquartered in Philadelphia, the company operates over **1,850 stores** in **44 U.S. states**[16](index=16&type=chunk) [Investor Contact](index=3&type=section&id=4.2.%20Investor%20Contact) Investors can contact Christiane Pelz, Vice President of Investor Relations at Five Below, for further information - Investor contact: Christiane Pelz, Vice President, Investor Relations[17](index=17&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=5.%20Consolidated%20Financial%20Statements) This section presents Five Below's consolidated balance sheets, statements of operations, and cash flows, providing a comprehensive view of its financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=5.1.%20Consolidated%20Balance%20Sheets) As of August 2, 2025, Five Below's total assets and shareholders' equity increased year-over-year, with a significant rise in cash and cash equivalents but a decrease in short-term investment securities Consolidated Balance Sheets Summary (As of August 2, 2025) | Metric (thousand USD) | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :----------------------- | :------------- | :------------- | :------------- | | **Total Assets** | 4,606,538 | 4,339,574 | 4,013,144 | | **Cash and Cash Equivalents** | 562,746 | 331,718 | 209,039 | | **Inventory** | 799,602 | 659,500 | 639,881 | | **Total Liabilities** | 2,699,291 | 2,531,247 | 2,405,403 | | **Shareholders' Equity** | 1,907,247 | 1,808,327 | 1,607,741 | [Consolidated Statements of Operations](index=5&type=section&id=5.2.%20Consolidated%20Statements%20of%20Operations) For Q2 and YTD FY2025, Five Below reported significant growth in net sales, operating income, and net income, reflecting continued business expansion and improved profitability Consolidated Statements of Operations Summary (thousand USD) | Metric | FY2025 Q2 | FY2024 Q2 | FY2025 YTD | FY2024 YTD | | :----------------------- | :----------- | :----------- | :------------ | :------------ | | **Net Sales** | 1,026,847 | 830,069 | 1,997,374 | 1,641,932 | | **Cost of Goods Sold** | 684,478 | 558,283 | 1,331,092 | 1,106,626 | | **Selling, General and Administrative Expenses** | 242,314 | 188,809 | 468,816 | 378,995 | | **Depreciation and Amortization** | 47,690 | 41,468 | 94,254 | 78,652 | | **Operating Income** | 52,365 | 41,509 | 103,212 | 77,659 | | **Income Tax Expense** | 15,143 | 11,563 | 30,489 | 21,236 | | **Net Income** | 42,762 | 33,000 | 83,910 | 64,467 | | **Diluted EPS** | 0.77 | 0.60 | 1.52 | 1.17 | [Consolidated Statements of Cash Flows](index=6&type=section&id=5.3.%20Consolidated%20Statements%20of%20Cash%20Flows) For YTD FY2025, Five Below reported a significant increase in operating cash flow, a shift to net cash inflow from investing activities, and reduced financing cash outflow, resulting in a higher net increase in cash and cash equivalents Consolidated Statements of Cash Flows Summary (As of August 2, 2025, thousand USD) | Metric | FY2025 YTD | FY2024 YTD | | :----------------------- | :------------ | :------------ | | **Net Cash Provided by Operating Activities** | 225,658 | 97,694 | | **Net Cash Provided by/(Used in) Investing Activities** | 8,727 | (22,022) | | **Net Cash Used in Financing Activities** | (3,357) | (46,382) | | **Net Increase in Cash and Cash Equivalents** | 231,028 | 29,290 | | **Cash and Cash Equivalents at End of Period** | 562,746 | 209,039 | - Operating cash flow significantly increased, primarily driven by higher net income and changes in working capital, including inventory and accounts payable[23](index=23&type=chunk) - Investing cash flow shifted from a net outflow to a net inflow year-over-year, mainly due to increased sales, maturities, and redemptions of investment securities, alongside reduced capital expenditures[23](index=23&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=6.%20Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of GAAP to non-GAAP financial measures, including gross profit, operating income, net income, and diluted EPS, to offer a clearer view of underlying business performance [Gross Profit Reconciliation](index=7&type=section&id=6.1.%20Gross%20Profit%20Reconciliation) The company adjusted GAAP gross profit to exclude the impact of retention awards, cost optimization initiatives, and non-recurring lease acquisition costs, arriving at adjusted gross profit Gross Profit Reconciliation (thousand USD) | Metric | FY2025 Q2 | FY2024 Q2 | FY2025 YTD | FY2024 YTD | | :----------------------- | :----------- | :----------- | :------------ | :------------ | | **Gross Profit (GAAP)** | 342,369 | 271,786 | 666,282 | 535,306 | | **Adjustments:** | | | | | | Retention Awards | 390 | 153 | 780 | 153 | | Cost Optimization Initiatives | — | — | 4,100 | — | | Non-recurring Lease Acquisition Costs | 495 | — | 495 | — | | **Adjusted Gross Profit** | 343,254 | 271,939 | 671,657 | 535,459 | [Operating Income Reconciliation](index=7&type=section&id=6.2.%20Operating%20Income%20Reconciliation) The company adjusted GAAP operating income by excluding retention awards, cost optimization initiatives, non-recurring lease acquisition costs, employment-related litigation, equity compensation benefits, and inventory write-downs to present adjusted operating income Operating Income Reconciliation (thousand USD) | Metric | FY2025 Q2 | FY2024 Q2 | FY2025 YTD | FY2024 YTD | | :----------------------- | :----------- | :----------- | :------------ | :------------ | | **Operating Income (GAAP)** | 52,365 | 41,509 | 103,212 | 77,659 | | **Adjustments:** | | | | | | Retention Awards | 2,259 | 1,647 | 5,196 | 1,647 | | Cost Optimization Initiatives | — | — | 4,960 | — | | Non-recurring Lease Acquisition Costs | 495 | — | 495 | — | | Non-recurring Employment-related Litigation | — | — | — | 1,976 | | Non-recurring Equity Compensation Benefit | — | (6,116) | — | (6,116) | | Non-recurring Inventory Write-down | — | — | 830 | — | | **Adjusted Operating Income** | 55,119 | 37,040 | 114,694 | 75,166 | [Net Income Reconciliation](index=9&type=section&id=6.3.%20Net%20Income%20Reconciliation) The company adjusted GAAP net income by excluding after-tax retention awards, cost optimization initiatives, non-recurring lease acquisition costs, employment-related litigation, equity compensation benefits, and inventory write-downs to present adjusted net income Net Income Reconciliation (thousand USD) | Metric | FY2025 Q2 | FY2024 Q2 | FY2025 YTD | FY2024 YTD | | :----------------------- | :----------- | :----------- | :------------ | :------------ | | **Net Income (GAAP)** | 42,762 | 33,000 | 83,910 | 64,467 | | **Adjustments (After-tax):** | | | | | | Retention Awards | 1,668 | 1,220 | 3,811 | 1,239 | | Cost Optimization Initiatives | — | — | 3,638 | — | | Non-recurring Lease Acquisition Costs | 366 | — | 363 | — | | Non-recurring Employment-related Litigation | — | — | — | 1,486 | | Non-recurring Equity Compensation Benefit | — | (4,532) | — | (4,599) | | Non-recurring Inventory Write-down | — | — | 609 | — | | **Adjusted Net Income** | 44,796 | 29,688 | 92,332 | 62,592 | [Diluted Income Per Common Share Reconciliation](index=9&type=section&id=6.4.%20Diluted%20Income%20Per%20Common%20Share%20Reconciliation) The company adjusted GAAP diluted EPS by excluding per-share retention awards, cost optimization initiatives, non-recurring lease acquisition costs, employment-related litigation, equity compensation benefits, and inventory write-downs to present adjusted diluted EPS Diluted Income Per Common Share Reconciliation (USD) | Metric | FY2025 Q2 | FY2024 Q2 | FY2025 YTD | FY2024 YTD | | :----------------------- | :----------- | :----------- | :------------ | :------------ | | **Diluted EPS (GAAP)** | 0.77 | 0.60 | 1.52 | 1.17 | | **Adjustments (Per Share):** | | | | | | Retention Awards | 0.03 | 0.02 | 0.07 | 0.02 | | Cost Optimization Initiatives | — | — | 0.07 | — | | Non-recurring Lease Acquisition Costs | 0.01 | — | 0.01 | — | | Non-recurring Employment-related Litigation | — | — | — | 0.03 | | Non-recurring Equity Compensation Benefit | — | (0.08) | — | (0.08) | | Non-recurring Inventory Write-down | — | — | 0.01 | — | | **Adjusted Diluted EPS** | 0.81 | 0.54 | 1.67 | 1.13 | [Important Disclosures](index=2&type=section&id=7.%20Important%20Disclosures) This section outlines important disclosures, including conference call information, the use of non-GAAP financial measures, and forward-looking statements with associated risk factors [Conference Call Information](index=2&type=section&id=7.1.%20Conference%20Call%20Information) The company held a conference call on August 27, 2025, to discuss Q2 FY2025 financial results, with an audio webcast and replay available on its investor relations website - The conference call was held on **August 27, 2025, at 4:30 PM ET**[11](index=11&type=chunk) - A live audio webcast and replay of the call are available on investor.fivebelow.com[11](index=11&type=chunk) [Non-GAAP Information](index=2&type=section&id=7.2.%20Non-GAAP%20Information) This press release includes non-GAAP financial measures like adjusted gross profit, operating income, net income, and diluted EPS, provided for comparable and supplementary insights into business performance, not as substitutes for GAAP results - Non-GAAP financial measures include adjusted gross profit, operating income, net income, and diluted EPS[12](index=12&type=chunk) - The company provides these non-GAAP metrics to offer comparable financial data and meaningful supplementary information, aiding investors in understanding business performance[12](index=12&type=chunk) - Non-GAAP measures are not GAAP measures and should not be considered in isolation or as substitutes for GAAP reported results[12](index=12&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=7.3.%20Forward-Looking%20Statements%20%26%20Risk%20Factors) This press release contains forward-looking statements reflecting management's current views and estimates, with actual results potentially differing significantly due to various risks and uncertainties, and the company undertakes no obligation to update them - Forward-looking statements reflect management's current views and estimates regarding the company's future performance, market position, operations, margins, and capital expenditures[13](index=13&type=chunk) - Actual results may differ materially from expectations due to various risks and uncertainties, including global supply chain disruptions, company strategy and expansion plans, talent attraction and retention, IT system disruptions, cyberattacks, AI usage, merchandise sourcing and distribution, reliance on overseas manufacturing, new store site selection, changes in consumer preferences and economic conditions, increased operating costs, inflation, potential recession, extreme weather, geopolitical events, tariffs, and trade restrictions[15](index=15&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statements, except as required by applicable securities law[15](index=15&type=chunk)

Core Insights - Five Below, Inc. reported a significant increase in net sales and earnings for Q2 2025, with net sales rising by 23.7% to $1.0 billion and comparable sales increasing by 12.4% [1][5] - The company has raised its full-year 2025 sales and EPS guidance, indicating strong confidence in future performance [1][7] Financial Performance - For Q2 2025, net sales reached $1,026.8 million, up from $830.1 million in Q2 2024, marking a 23.7% increase [5] - Comparable sales for the same period increased by 12.4% [5] - Operating income was reported at $52.4 million, compared to $41.5 million in Q2 2024 [5] - Adjusted operating income for Q2 2025 was $55.1 million, up from $37.0 million in Q2 2024 [5] - Net income for Q2 2025 was $42.8 million, compared to $33.0 million in Q2 2024, with adjusted net income at $44.8 million versus $29.7 million [5] - Diluted EPS for Q2 2025 was $0.77, compared to $0.60 in Q2 2024, while adjusted diluted EPS was $0.81, up from $0.54 [5] Year-to-Date Performance - For the year-to-date period ending August 2, 2025, net sales increased by 21.6% to $1,997.4 million from $1,641.9 million in the previous year [6] - Comparable sales for the year-to-date period rose by 9.8% [6] - Year-to-date operating income was $103.2 million, compared to $77.7 million in the prior year [6] - Adjusted net income for the year-to-date period was $92.3 million, up from $62.6 million [6] - Diluted EPS for the year-to-date period was $1.52, compared to $1.17 in the previous year [6] Store Expansion - The company opened 32 net new stores in Q2 2025, bringing the total to 1,858 stores across 44 states, representing an 11.5% increase in store count from the previous year [5][6] Future Outlook - The company anticipates Q3 2025 net sales in the range of $950 million to $970 million, with an expected 5% to 7% increase in comparable sales [14] - For the full year 2025, net sales are projected to be between $4.44 billion and $4.52 billion, with net income expected in the range of $253 million to $275 million [14]

Core Viewpoint - Five Below, Inc. is demonstrating signs of regaining momentum with stronger sales growth, robust same-store performance, and an accelerating store expansion strategy [1] Sales and Growth Projections - Analyst Joseph Feldman projects sales growth of approximately 20% to $994 million, driven by 30 new store openings, which represents an 11.3% unit growth [4] - For the second quarter of 2025, comps are expected to rise by 9.0%, surpassing FactSet's estimate of 8.6% [3] - The company is expected to benefit from a favorable comparison to last year's comp decline of 5.7% [4] Profitability and Margin Expectations - Feldman forecasts a contraction in operating margin of 19 basis points to 4.3%, with gross margin down 20 basis points to 32.5% due to tariff pressures [6] - SG&A expenses are expected to remain flat at 28.3%, as strong comps offset higher labor and incentive compensation costs [6] Strategic Focus and Market Position - Five Below is focusing on core customers, trend-right merchandising, and price-point adjustments, with most items priced in the $1–$5 range [5] - The company is likely to gain from the U.S. government's closure of the de minimis exemption loophole, which previously favored low-cost competitors [5] Analyst Ratings and Price Forecasts - Telsey Advisory Group reaffirmed a Market Perform rating and raised the 12-month price forecast by $16 to $144 [2] - Other analysts have also raised their price forecasts, with Citigroup increasing its forecast from $135 to $142, and Mizuho from $115 to $132 [7][8] - Loop Capital upgraded the stock from Hold to Buy, boosting its forecast from $130 to $165, the highest among the group [8]

Core Viewpoint - Five Below, Inc. will release its financial results for the second quarter of fiscal 2025 on August 27, 2025, followed by a conference call to discuss these results [1][2]. Company Overview - Five Below is a high-growth value retailer that offers trend-right, high-quality products primarily targeted at tweens and teens, with most items priced between $1 and $5, and some extreme value items priced above $5 [4][5]. - The company was founded in 2002 and is headquartered in Philadelphia, Pennsylvania, currently operating over 1,850 stores across 44 states [5]. Financial Communication - A live audio webcast of the upcoming conference call will be available online, and a replay will be accessible shortly after the call concludes [2]. - Investors and analysts are encouraged to join the call by dialing in approximately 10 minutes before it starts [2].

Welcome back to the exchange. It's time to reveal today's mystery chart. It's Five Below.Give a congrats to Trade CNBC and to Nicholas Brown for guessing this. The discount retailer climbing 4% today after Loop Capital upgraded the name to a buy rating. Shares are already up about 150% since their recent low in April, but Loop sees another 20% upside from here.The firm says the market is vastly underestimating its near-term earnings power, and that five below's pricing power can help offset tariffs. So join ...

Group 1 - The return of Lady Gaga to the Coachella music festival is perceived as a signal of economic decline in the U.S. [1][4] - A TikTok video explains that during good economic times, people prefer calm music, while in tough times, they crave upbeat dance music, indicating a psychological response to economic stress [4] - Various indicators of economic downturn have been identified by Americans, such as the rise of flash mobs and the decline in strip club attendance, reflecting changes in consumer behavior [6][8][9] Group 2 - The economic sentiment is further illustrated by the popularity of memes that highlight signs of recession, such as the resurgence of old TV shows and the sale of unusual items on second-hand platforms [21][12] - A survey by the National Association for Business Economics indicates that 37% of economists believe there is at least a 50% chance of a recession in the next year, with 75% of respondents acknowledging significant downside risks to economic growth [22] - Fast food chains like McDonald's are experiencing declining sales, with a 3.6% drop in same-store sales in Q1 2025, the largest decline since the pandemic [25] Group 3 - Discount retailers like Five Below and Dollar Tree are thriving as consumers seek high-value products amid economic uncertainty, with Five Below reporting a 19.5% year-over-year growth [28] - The trend of "consumption downgrade" is evident as consumers opt for cheaper alternatives, including counterfeit luxury goods, reflecting a shift in spending habits [28] - The cultural response to economic hardship includes the rise of humor and memes as coping mechanisms, similar to trends observed during the 2008 financial crisis [33][40] Group 4 - Humor serves as a psychological coping strategy during economic stress, allowing individuals to maintain emotional distance from their fears and anxieties [50][57] - The creation and sharing of memes during economic downturns can foster social connections and provide a sense of community among those facing similar challenges [60][62] - The historical context shows that humor and satire often emerge as forms of resistance and coping during difficult economic times, highlighting the interconnectedness of culture and economic conditions [46][49]