Net Sales Increase of 23.2% to $1.5 Billion; Comparable Sales Increase of 14.5% Increases Fourth Quarter and Full Year Fiscal 2025 Outlook PHILADELPHIA, PA, Jan. 12, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) ("Five Below" or the "Company") today announced net sales results for the quarter-to-date period from November 2, 2025 through January 3, 2026 ("Holiday Period"). Net sales for the Holiday Period increased by 23.2% to $1.47 billion from $1.19 billion in the comparable nine-week period fro ...

Core Insights - The retail sector is stabilizing after a volatile year characterized by inflation, high borrowing costs, and cautious consumer spending, with some retailers achieving double-digit gains driven by holiday optimism and improving fundamentals [1][2] Retail Sector Performance - The recent rally in retail stocks is momentum-driven rather than purely sentiment-driven, with investors favoring companies that show progress in margins, inventory management, and traffic trends [2] - Retail stocks have not reached uncomfortable valuation levels, with many trading below historical price-to-earnings multiples and supported by favorable earnings estimates [3] Notable Retail Stocks - Victoria's Secret & Co. (VSCO) has seen a stock increase of 16.5% due to its successful "Path to Potential" strategy, which revitalizes its core business and enhances profitability [7][8] - Five Below, Inc. (FIVE) has risen 14.4%, benefiting from increased foot traffic and AI-driven inventory management [8][14] - American Eagle Outfitters, Inc. (AEO) has climbed 13.6%, driven by strong performance in its Aerie brand and effective marketing strategies [8][17] - Brinker International, Inc. (EAT) has increased by 11.5%, supported by strong same-store sales and positive traffic growth [8][20] Earnings Estimates and Valuations - Victoria's Secret's earnings estimates have increased by $0.10 to $2.63 for the current fiscal year and by $0.16 to $2.90 for the next fiscal year [10] - Five Below's earnings estimates have risen by $0.31 to $5.84 for the current fiscal year and by $0.14 to $6.12 for the next fiscal year [14] - American Eagle's earnings estimates have increased by $0.03 to $1.33 for the current fiscal year and by $0.04 to $1.58 for the next fiscal year [17] - Brinker International's earnings estimates have increased by $0.03 to $10.23 for the current fiscal year and by $0.03 to $11.74 for the next fiscal year [20] Technical Setup - Victoria's Secret is trading at a forward P/E of 21.18, below its one-year high, indicating supportive valuation [11] - Five Below is trading at a forward P/E of 32.86, which remains reasonable relative to its one-year peak [14] - American Eagle is trading at a forward P/E of 17.35, still below its one-year high [17] - Brinker International is trading at a forward P/E of 14.17, below its one-year peak, suggesting reasonable valuation [21]

Core Insights - The retail sector is entering 2026 with improved conditions due to easing inflation, stabilizing supply chains, and the Federal Reserve cautiously cutting interest rates after a period of restrictive policy [1][2] Consumer Behavior - Consumer spending remains uneven, with higher-income shoppers focusing on premium products while price-sensitive households prefer discounts and essentials, influencing demand across the retail landscape [2] - Retailers with integrated pricing, loyalty programs, and omnichannel strategies are better positioned to attract customers without sacrificing margins [2] E-commerce and Fulfillment - Physical stores remain dominant, but sustained e-commerce growth is essential, supported by faster delivery and AI-driven recommendations [3] - Companies enhancing online shopping experiences and last-mile delivery are likely to expand their customer base, leveraging a combination of physical and digital channels for competitive advantage [3] Investment Opportunities - Stock selection in 2026 should focus on retailers with structural advantages, combining steady demand drivers with brand strength and operational efficiency [4] - Recommended retail stocks include Five Below, American Eagle Outfitters, The Gap, and Ulta Beauty, which are positioned well amid improving sector conditions [4][8] Company Highlights Five Below - Five Below is strengthening its position as a leading value retailer with a trend-focused product assortment appealing to teens and tweens, showing consistent increases in foot traffic and significant traffic growth through operational innovations [9] - The Zacks Consensus Estimate indicates sales growth of 19.6% for the current year and 8.9% for the next year [10] American Eagle - American Eagle is revitalizing its brands, particularly Aerie and OFFLINE, through impactful marketing and collaborations, leading to strong customer acquisition and operational resilience [12] - The Zacks Consensus Estimate forecasts sales growth of 2.4% for the current year and 2.6% for the next year [13] Gap - Gap is executing a brand reinvigoration strategy, leveraging marketing and partnerships to attract younger demographics while maintaining core customer loyalty [15] - The Zacks Consensus Estimate suggests sales growth of 1.8% for the current year and 2.4% for the next year [16] Ulta Beauty - Ulta Beauty is achieving momentum through its "Ulta Beauty Unleashed" strategy, with a competitive advantage from its diverse brand assortment and successful international expansion [18] - The Zacks Consensus Estimate indicates sales growth of 8.7% for the current year and 5.8% for the next year [19]

Core Insights - Five Below, Inc. (FIVE) demonstrates resilient demand supported by strong customer engagement, leading to a 14.3% year-over-year increase in comparable sales [1][9] - The company achieved a 23.1% year-over-year rise in net sales, surpassing $1 billion in quarterly revenues for the second consecutive quarter, indicating sustained demand momentum [2][9] Sales and Customer Engagement - Comparable sales growth was broad-based, with increases across most merchandise departments, new and retained customers, and all household income cohorts, highlighting Five Below's mass-market appeal [2] - Traffic gains accelerated throughout the quarter due to improved marketing effectiveness, including creator-driven content and social-led campaigns, which enhanced store execution and conversion rates [3] Future Outlook - Management projects total sales for the fourth quarter to be between $1.58 billion and $1.61 billion, with comparable sales expected to improve by 6-8% [4] - The company has a solid start to the holiday season, with November and Black Friday weekend performance meeting expectations [4] Growth Profile - Five Below's performance indicates a structurally improved growth profile, with effective value-led pricing and rising store productivity contributing to sustained strong comparable sales and attractive earnings growth [5] - Comparable sales are expected to increase by 9.8% year-over-year in fiscal 2025 [5] Stock Performance and Valuation - Shares of Five Below have increased by 52.1% over the past six months, significantly outperforming the industry growth of 7.9% [6] - The company is currently trading at a forward 12-month price-to-sales ratio of 2.16X, above the industry average of 1.79X [7] Earnings Estimates - The Zacks Consensus Estimate for Five Below's fiscal 2025 earnings suggests a year-over-year growth of 15.9%, with estimates revised upward by 74 cents in the past 30 days [10]

Core Insights - The article highlights the effective merchandising strategy implemented by CEO Winnie Park at Five Below, indicating a positive outlook for the company's future performance [1]. Company Analysis - Five Below is recognized for its strong merchandising approach under the leadership of CEO Winnie Park, which is expected to drive growth [1]. Industry Context - The focus of the article is on retail, particularly in the context of companies like Five Below that are navigating growth opportunities and valuation metrics in a competitive market [1].

Company Announcement - Five Below, Inc. is scheduled to host a fireside chat at the 2026 ICR Conference on January 12, 2026, at 10:00 a.m. Eastern Time [1] - The event will be webcast live and an archived replay will be available two hours after the live event [2] Financial Performance - The company plans to release its holiday sales results on January 12, 2026, prior to the market open [2] Company Overview - Five Below is a leading growth retailer offering high-quality products priced mostly between $1 and $5, with some items priced beyond $5 [3] - The company was founded in 2002 and is headquartered in Philadelphia, Pennsylvania, operating over 1,900 stores across 46 states [3]

Core Insights - Five Below, Inc. is positioned to benefit significantly from the potential removal of tariffs, which have previously impacted its merchandise pricing [1] - The company has demonstrated impressive growth, with a reported 14% same-store sales growth in the latest quarter, indicating strong performance and effective management strategies [1] Company Overview - Five Below, Inc. offers a diverse range of low-priced products, including essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items [1] - The company operates approximately 1,900 stores across nearly every state in the U.S., showcasing its extensive market presence [1] Leadership and Strategy - CEO Winnie Park has been credited with setting up Five Below for multi-year growth, focusing on returning to basics to drive transformation and performance [1]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential derivative claims on behalf of Five Below, Inc. regarding alleged breaches of fiduciary duty and violations of state and federal law by certain officers and directors [1] Shareholder Actions - Current shareholders of Five Below, Inc. who held shares continuously before July 16, 2024, may seek corporate governance reforms, return of funds to the Company, and a court-approved incentive award at no cost [2] Background of the Investigation - On July 16, 2024, Five Below, Inc. reported a 5.0% year-over-year decline in comparable sales and reduced fiscal second-quarter 2024 sales expectations, projecting revenue between $820 million and $826 million with an anticipated 6%–7% decrease in comparable sales [2] - The announcement also included the sudden departure of the Company's President and CEO [2] Legal Proceedings - Following the disclosures, Five Below and certain executives were named as defendants in a federal securities class action lawsuit for failing to disclose material adverse information to investors [3] - The court overseeing the case denied the Company's motion to dismiss in part, allowing significant portions of the case to proceed [3] Investigation Focus - Johnson Fistel's investigation is centered on whether Five Below's board of directors and senior management failed to oversee operations and disclosures properly, permitted misleading statements regarding financial performance and sales trends, and exposed the Company to legal, financial, and reputational harm [4]

Core Viewpoint - Five Below (FIVE) is currently outperforming its peers in the Retail-Wholesale sector, with a year-to-date performance of approximately 73.4% compared to the sector average of 6.6% [4]. Company Performance - Five Below is part of the Retail-Wholesale sector, which includes 196 individual stocks and holds a Zacks Sector Rank of 7 [2]. - The Zacks Rank for Five Below is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - Over the past 90 days, the Zacks Consensus Estimate for Five Below's full-year earnings has increased by 16.2%, reflecting improved analyst sentiment [4]. Comparative Analysis - Kohl's (KSS) is another Retail-Wholesale stock that has shown strong performance, with a year-to-date increase of 61.5% and a consensus EPS estimate increase of 110.9% over the past three months, currently holding a Zacks Rank of 2 (Buy) [5]. - Five Below belongs to the Retail - Miscellaneous industry, which includes 15 companies and is ranked 103 in the Zacks Industry Rank, with an average gain of 7.7% year-to-date [6]. - In contrast, Kohl's is part of the Retail - Regional Department Stores industry, which has a ranking of 5 and has increased by 47.2% year-to-date [6]. Future Outlook - Investors interested in Retail-Wholesale stocks should monitor Five Below and Kohl's for potential continued strong performance [7].

Core Insights - U.S. stock markets have experienced a significant rally in 2023, largely driven by advancements in artificial intelligence, with notable performance from non-tech companies as well [1][2] Group 1: Company Highlights - General Motors Co. (GM) holds a 17% market share as the top-selling U.S. automaker, benefiting from strong demand across its brands and a 10% year-over-year sales increase in China [6][7] - GM's software and services division generated $2 billion in revenue by the end of Q3 2025, with 11 million OnStar subscribers, indicating a shift towards software-led growth [7] - Robinhood Markets Inc. (HOOD) is seeing improved trading activity and higher net interest income, with a focus on product diversification to enhance its market position [10][11] - Expedia Group Inc. (EXPE) operates a robust platform that connects travelers and suppliers, leading to stable demand and increased gross bookings, supported by a strong brand portfolio [13][14] - Dillard's Inc. (DDS) is enhancing its customer base through store and online improvements, with a focus on fashionable merchandise driving traffic and better-than-expected earnings [15][16] - Five Below Inc. (FIVE) is experiencing strong momentum with traffic gains and improved marketing effectiveness, leading to an upward revision of its full-year sales expectations to $4.62-$4.65 billion [18][19] Group 2: Financial Performance and Projections - GM has an expected revenue growth rate of -0.3% and an earnings growth rate of 12.9% for the next year, with a 0.5% improvement in the Zacks Consensus Estimate for earnings [8] - HOOD's expected revenue and earnings growth rates are 21% and 17.9%, respectively, with a 1.8% improvement in the earnings estimate [12] - EXPE's expected revenue and earnings growth rates are 6.3% and 20.8%, respectively, with a 3.2% improvement in the earnings estimate [14] - DDS has an expected revenue growth rate of 0.7% and an earnings decline of -8.2%, with a 5.3% improvement in the earnings estimate [17] - FIVE's expected revenue and earnings growth rates are 8.6% and 5.6%, respectively, with a 1.3% improvement in the earnings estimate [20]