Core Viewpoint - Five Below Inc's shares have surpassed the average analyst 12-month target price of $214.47, currently trading at $216.72, prompting analysts to consider either downgrading their valuation or raising their target price based on the company's fundamental developments [1][3]. Analyst Target Summary - There are 19 different analyst targets for Five Below Inc, with the lowest target at $115.00 and the highest at $240.00, resulting in a standard deviation of $29.701 [2]. - The average target price reflects a collective assessment, suggesting that investors should evaluate whether the current price is a stepping stone to higher targets or if the valuation is becoming stretched [3]. Analyst Ratings Breakdown - The current analyst ratings for Five Below Inc show 17 strong buy ratings, 1 buy rating, 1 hold rating, and no sell or strong sell ratings, maintaining an average rating of 1.13, which indicates a strong buy [4].

Core Viewpoint - Kahn Swick & Foti, LLC is investigating Five Below, Inc. for potential breaches of fiduciary duties and violations of state or federal laws following a decline in comparable sales and the departure of key executives [1][4]. Financial Performance - Five Below reported a 5.0% decrease in comparable sales for the period ending July 15, 2023, compared to the previous year [2]. - The company expects fiscal second-quarter sales to be between $820 million and $826 million, anticipating a further 6% to 7% decrease in comparable sales [2]. Legal Issues - Following the sales decline, Five Below and its executives are facing a securities class action lawsuit for failing to disclose material information, with the court allowing the case to proceed after denying the company's motion to dismiss [3]. - Kahn Swick & Foti's investigation is focused on whether the company's officers and directors acted in violation of their fiduciary duties to shareholders [4].

Group 1 - KeyBanc analyst Aleksey Yefremov initiated coverage on Avient Corporation (AVNT) with an Overweight rating and a price target of $48, while shares closed at $35.77 [5] - Barclays analyst Etzer Darout initiated coverage on Protagonist Therapeutics, Inc. (PTGX) with an Overweight rating and a price target of $72, with shares closing at $58.59 [5] - Citigroup analyst Samantha Semenkow initiated coverage on Biohaven Ltd. (BHVN) with a Buy rating and a price target of $28, while shares closed at $13.49 [5] - Barclays analyst Etzer Darout also initiated coverage on Summit Therapeutics Inc. (SMMT) with an Underweight rating and a price target of $13, with shares closing at $18.12 [5] - Bernstein analyst Zhihan Ma initiated coverage on Five Below, Inc. (FIVE) with a Market Perform rating and a price target of $160, while shares closed at $149.06 [5]

Core Insights - The completion of the Human Genome Project (HGP) on April 13, 2003, marked a significant milestone in human development, providing a reference sequence of the human genome [1] - This genomic information enables the development of personalized medicine and targeted therapies, allowing treatments to be tailored to an individual's genetic makeup [2] - Eric Fry's research aims to identify a "genetic blueprint" in stocks that can yield returns of 1,000% or more, similar to the advancements in human health [3] Investment Strategy - Over the past three decades, Eric Fry has successfully recommended over 40 stocks that achieved returns exceeding 1,000%, establishing a strong track record in identifying high-potential investments [4][6] - Fry's new stock-picking system is designed to identify when a stock enters a 10X pattern, combining quantitative analysis with his own evaluations for final recommendations [5] - The system has undergone extensive testing, including over 5.2 million back-tests across more than 14,000 stocks, demonstrating its effectiveness in outperforming the S&P 500 by 4,200% [9] Notable Recommendations - Examples of successful stock picks include Sturm, Ruger & Co. Inc. (RGR) with a return of +1,543%, BHP Group Ltd. (BHP) at +2,045%, and Humana Inc. (HUM) achieving +3,591% [7] - Humana was identified as a potential winner despite a 60% drop in its stock price, showcasing Fry's ability to see opportunities where others see risks [8] - The first official recommendation from the new system is Five Below Inc. (FIVE), which entered the 10X Zone on May 12, indicating strong potential for growth [11]

PART I - FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements of Five Below, Inc. for the periods ended August 2, 2025, and August 3, 2024, including balance sheets, statements of operations, statements of shareholders' equity, and statements of cash flows, along with accompanying notes detailing significant accounting policies and financial instrument disclosures [Unaudited Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) The consolidated balance sheets show an increase in total assets, primarily driven by higher cash and cash equivalents and inventories, alongside an increase in total liabilities and shareholders' equity as of August 2, 2025, compared to prior periods Metric | Metric | August 2, 2025 (in thousands) | February 1, 2025 (in thousands) | August 3, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------ | :----------------------------- | | Cash and cash equivalents | $562,746 | $331,718 | $209,039 | | Inventories | $799,602 | $659,500 | $639,881 | | Total current assets | $1,584,918 | $1,351,367 | $1,118,639 | | Total liabilities | $2,699,291 | $2,531,247 | $2,405,403 | | Total shareholders' equity | $1,907,247 | $1,808,327 | $1,607,741 | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Five Below, Inc. reported significant growth in net sales, operating income, and net income for both the thirteen and twenty-six weeks ended August 2, 2025, compared to the same periods in the prior year, leading to increased basic and diluted earnings per common share Metric | Metric | Thirteen Weeks Ended August 2, 2025 (in thousands) | Thirteen Weeks Ended August 3, 2024 (in thousands) | Twenty-Six Weeks Ended August 2, 2025 (in thousands) | Twenty-Six Weeks Ended August 3, 2024 (in thousands) | | :------------------------ | :----------------------------------------------- | :----------------------------------------------- | :------------------------------------------------- | :----------------------------------------------- | | Net sales | $1,026,847 | $830,069 | $1,997,374 | $1,641,932 | | Operating income | $52,365 | $41,509 | $103,212 | $77,659 | | Net income | $42,762 | $33,000 | $83,910 | $64,467 | | Basic income per common share | $0.78 | $0.60 | $1.52 | $1.17 | | Diluted income per common share | $0.77 | $0.60 | $1.52 | $1.17 | [Unaudited Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased from February 1, 2025, to August 2, 2025, primarily due to net income and share-based compensation expense, partially offset by common shares withheld for taxes Metric | Metric | Balance, February 1, 2025 (in thousands) | Balance, August 2, 2025 (in thousands) | | :-------------------------- | :------------------------------------- | :------------------------------------- | | Total shareholders' equity | $1,808,327 | $1,907,247 |\n| Share-based compensation expense | $9,672 (Feb-May) / $8,392 (May-Aug) | $18,064 (Total for 26 weeks) |\n| Net income | $41,148 (Feb-May) / $42,762 (May-Aug) | $83,910 (Total for 26 weeks) |\n| Common shares withheld for taxes | $(1,254) (Feb-May) / $(2,581) (May-Aug) | $(3,835) (Total for 26 weeks) | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a significant increase in net cash provided by operating activities for the twenty-six weeks ended August 2, 2025, compared to the prior year, while investing activities shifted from a net use to a net provision of cash, and financing activities saw a substantial decrease in cash used Cash Flow Activity | Cash Flow Activity | Twenty-Six Weeks Ended August 2, 2025 (in thousands) | Twenty-Six Weeks Ended August 3, 2024 (in thousands) | | :---------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | 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 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes provide detailed information on Five Below's significant accounting policies, including business description, fiscal year, basis of presentation, recently issued accounting pronouncements, use of estimates, fair value of financial instruments, revenue recognition, leases, income per common share, line of credit, commitments and contingencies, share-based compensation, income taxes, and segment reporting - Five Below, Inc. is a specialty value retailer targeting tween and teen demographics, operating **1,858 stores** in **44 states** as of August 2, 2025, and also sells merchandise through its e-commerce website and third-party delivery services[19](index=19&type=chunk)[21](index=21&type=chunk) - The company is evaluating the impact of new accounting standards: **ASU No. 2023-09** (Income Taxes - Improvements to Income Tax Disclosures) effective for fiscal years beginning after **December 15, 2024**, and **ASU 2024-03** (Disaggregation of Income Statement Expenses) effective for fiscal years beginning after **December 15, 2026**[24](index=24&type=chunk)[25](index=25&type=chunk) Disaggregated Revenue by Product Group | Product Group | Thirteen Weeks Ended August 2, 2025 (Amount) | Percentage of Net Sales | Thirteen Weeks Ended August 3, 2024 (Amount) | Percentage of Net Sales | | :---------------- | :------------------------------------------- | :---------------------- | :------------------------------------------- | :---------------------- | | Leisure | $470,463 | 45.8 % | $374,905 | 45.2 % | | Fashion and home | $309,295 | 30.1 % | $249,386 | 30.0 % | | Snack and seasonal| $247,089 | 24.1 % | $205,778 | 24.8 % | | Total | $1,026,847 | 100.0 % | $830,069 | 100.0 % | | Product Group | Twenty-Six Weeks Ended August 2, 2025 (Amount) | Percentage of Net Sales | Twenty-Six Weeks Ended August 3, 2024 (Amount) | Percentage of Net Sales | | :---------------- | :------------------------------------------- | :---------------------- | :------------------------------------------- | :---------------------- | | Leisure | $905,369 | 45.3 % | $748,739 | 45.6 % | | Fashion and home | $593,064 | 29.7 % | $477,658 | 29.1 % | | Snack and seasonal| $498,941 | 25.0 % | $415,535 | 25.3 % | | Total | $1,997,374 | 100.0 % | $1,641,932 | 100.0 % | - As of August 2, 2025, the Company had no borrowings under its **$225.0 million Revolving Credit Facility** and was in compliance with all applicable covenants[55](index=55&type=chunk) - A putative class action lawsuit was filed against Five Below, Inc. and a former senior officer, alleging violations of securities laws, which the Company intends to **vigorously defend** against[58](index=58&type=chunk)[150](index=150&type=chunk) - As of August 2, 2025, there was **$48.5 million** of total unrecognized compensation costs related to non-vested share-based compensation arrangements, expected to be recognized over a weighted average vesting period of **2.0 years**[67](index=67&type=chunk) Effective Tax Rates | Period | August 2, 2025 | August 3, 2024 | | :---------------------- | :------------- | :------------- | | Thirteen Weeks Ended | 26.2 % | 25.9 % | | Twenty-Six Weeks Ended | 26.7 % | 24.8 % | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, including an overview of operations, key performance indicators, detailed analysis of consolidated results for the thirteen and twenty-six weeks ended August 2, 2025, liquidity and capital resources, and critical accounting policies [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=19&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties, which could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these statements - Key risk factors include impacts of inflation, failure to implement growth strategy, supply chain disruptions, tariffs, price increases, dependence on store/website traffic, inability to manage inventory, changes in competitive environment, seasonality, natural disasters, and cyberattacks[80](index=80&type=chunk)[89](index=89&type=chunk) [Overview](index=20&type=section&id=Overview) Five Below, Inc. is a rapidly growing specialty value retailer targeting tween and teen customers, offering a broad range of merchandise, mostly priced at $5 and below. As of August 2, 2025, the company operated 1,858 stores in 44 states and maintains an e-commerce presence - As of August 2, 2025, Five Below operated **1,858 stores** in **44 states**[83](index=83&type=chunk) - The company offers merchandise primarily priced at **$5 and below**, including select brands and licensed merchandise[83](index=83&type=chunk) [How We Assess the Performance of Our Business and Non-GAAP Measures](index=20&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business%20and%20Non-GAAP%20Measures) Management assesses business performance using key financial measures such as net sales, comparable sales, cost of goods sold and gross profit, selling, general and administrative expenses (SG&A), and operating income. The section defines these metrics and discusses factors affecting them, including seasonality and growth strategy - Net sales are highest in the **fourth fiscal quarter** due to the year-end holiday season, reflecting the seasonal nature of the business[88](index=88&type=chunk) - Comparable sales include net sales from stores open for at least **15 full months** and e-commerce sales, with specific exclusions for relocated or expanded stores and adjustments for 53-week fiscal years[90](index=90&type=chunk)[91](index=91&type=chunk) - Gross profit is net sales less cost of goods sold, with gross margin as a percentage of net sales. Cost of goods sold includes merchandise costs, inbound freight, tariffs, shipping/handling, store occupancy, distribution, and buying expenses[95](index=95&type=chunk) - SG&A expenses comprise payroll, compensation, marketing, advertising, depreciation, and amortization. These are expected to increase with continued store growth and can fluctuate due to performance-based compensation[99](index=99&type=chunk)[100](index=100&type=chunk) [Results of Consolidated Operations](index=24&type=section&id=Results%20of%20Consolidated%20Operations) The company achieved strong financial results for both the thirteen and twenty-six weeks ended August 2, 2025, with significant increases in net sales, gross profit, and net income, driven by new store openings and positive comparable sales growth Consolidated Statements of Operations Data (Thirteen Weeks Ended) | Metric | August 2, 2025 (in millions) | August 3, 2024 (in millions) | Change (in millions) | % Change | | :------------------------ | :--------------------------- | :--------------------------- | :------------------- | :------- | | Net sales | $1,026.8 | $830.1 | $196.7 | 23.7 % | | Cost of goods sold | $684.5 | $558.3 | $126.2 | 22.6 % | | Gross profit | $342.3 | $271.8 | $70.5 | 26.0 % | | Operating income | $52.4 | $41.5 | $10.9 | 26.3 % | | Net income | $42.8 | $33.0 | $9.8 | 29.6 % | | Comparable sales increase | 12.4 % | (5.7)% | - | - | | Gross margin | 33.3 % | 32.7 % | +0.6 % | - | Consolidated Statements of Operations Data (Twenty-Six Weeks Ended) | Metric | August 2, 2025 (in millions) | August 3, 2024 (in millions) | Change (in millions) | % Change | | :------------------------ | :--------------------------- | :--------------------------- | :------------------- | :------- | | Net sales | $1,997.4 | $1,641.9 | $355.5 | 21.6 % | | Cost of goods sold | $1,331.1 | $1,106.6 | $224.5 | 20.3 % | | Gross profit | $666.3 | $535.3 | $131.0 | 24.5 % | | Operating income | $103.2 | $77.7 | $25.5 | 32.8 % | | Net income | $83.9 | $64.5 | $19.4 | 30.2 % | | Comparable sales increase | 9.8 % | (4.1)% | - | - | | Gross margin | 33.4 % | 32.6 % | +0.8 % | - | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company plans for approximately $210 million in cash capital expenditures for fiscal 2025, primarily for 150 net new stores, funded by cash from operations, cash on hand, investments, and its Revolving Credit Facility. Working capital requirements fluctuate seasonally, peaking in the third and fourth fiscal quarters - Planned cash capital expenditures for fiscal 2025 are approximately **$210 million**, with **$110 million** allocated to construct and open approximately **150 net new stores**[122](index=122&type=chunk) - The company expects to fund capital expenditures and working capital from cash on-hand, net cash provided by operating activities, and its Revolving Credit Facility, which has **$225 million** available as of August 2, 2025[124](index=124&type=chunk)[127](index=127&type=chunk) - No share repurchases were made during the twenty-six weeks ended August 2, 2025, under the **$100 million** program approved in November 2023[125](index=125&type=chunk) Cash Flows Summary (Twenty-Six Weeks Ended) | Cash Flow Activity | August 2, 2025 (in millions) | August 3, 2024 (in millions) | | :---------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $225.7 | $97.7 | | Net cash provided by (used in) investing activities | $8.7 | $(22.0) | | Net cash used in financing activities | $(3.4) | $(46.4) | | Net increase during period in cash and cash equivalents | $231.0 | $29.3 | [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The preparation of financial statements requires management to make estimates and assumptions, which are detailed in the Annual Report. Actual results may vary materially from these estimates [Contractual Obligations](index=28&type=section&id=Contractual%20Obligations) Since February 2, 2025, the company has entered into 85 new retail leases with average terms of approximately 10 years, resulting in future minimum lease payments of approximately $168.3 million - From February 2, 2025, to August 2, 2025, the company committed to **85 new retail leases** with average terms of approximately **10 years**, totaling approximately **$168.3 million** in future minimum lease payments[136](index=136&type=chunk) [Off-Balance Sheet Arrangements](index=28&type=section&id=Off-Balance%20Sheet%20Arrangements) For the thirteen weeks ended August 2, 2025, the company was not party to any material off-balance sheet arrangements that are reasonably likely to have a current or future effect on its financial condition or results of operations [Recently Issued Accounting Pronouncements](index=28&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section refers to Note 1 of the consolidated financial statements for a detailed description of recently issued accounting pronouncements [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity, affecting interest income from investments and potential borrowings under its variable-rate Revolving Credit Facility. The impact of inflation on historical results has been immaterial, with mitigation strategies in place - The company's principal market risk is **interest rate sensitivity**, primarily due to its interest-bearing investment securities and variable-rate **Revolving Credit Facility**[141](index=141&type=chunk)[142](index=142&type=chunk) - An immediate **100 basis point change** in interest rates is not expected to materially affect the fair market value of the short-term investment portfolio or operating results[141](index=141&type=chunk) - The effects of inflation on historical results have been **immaterial**, and the company employs strategies like sourcing from different vendors and changing product mix to minimize future impacts[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they are effective at a reasonable assurance level. There were no material changes to internal control over financial reporting during the thirteen weeks ended August 2, 2025 - Disclosure controls and procedures were evaluated as **effective** at a reasonable assurance level as of August 2, 2025[145](index=145&type=chunk) - No **material changes** to internal control over financial reporting occurred during the thirteen weeks ended August 2, 2025[146](index=146&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, including a putative class action lawsuit alleging securities law violations. Management believes the ultimate resolution of these matters will not have a material adverse effect on the company's financial condition or results of operations - A class action lawsuit was filed against Five Below, Inc. and a former senior officer, alleging violations of Sections **10(b)** and **20(a)** of the Securities Exchange Act of 1934 and Rule **10b-5**[150](index=150&type=chunk) - The company intends to **vigorously defend** against the class action, believing it to be without merit, and the potential impact of unspecified damages is uncertain[150](index=150&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors discussed in the company's Annual Report, stating that there have been no material changes to these risks. Additional unknown or immaterial risks could also adversely affect the business - There have been **no material changes** in the company's risk factors from those previously disclosed in its Annual Report[152](index=152&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company had no repurchases of its common stock during the thirteen weeks ended August 2, 2025, under its $100 million share repurchase program, which was approved in November 2023 - No shares were repurchased under the **$100 million** share repurchase program during the thirteen weeks ended August 2, 2025[153](index=153&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) During the thirteen weeks ended August 2, 2025, none of the company's directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading plans - No Rule **10b5-1 trading plans** were adopted or terminated by directors or Section 16 officers during the thirteen weeks ended August 2, 2025[156](index=156&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including letter agreements, consulting agreements, certifications of the CEO and CFO, and XBRL financial information

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)