Five Below, Inc. Announces Third Quarter Fiscal 2025 Financial Results
Sales Increase of 23.1% to $1.0 Billion; Comparable Sales Increase of 14.3%
Q3 GAAP Diluted EPS of $0.66, Q3 Adjusted Diluted EPS of $0.68
Increases Full Year 2025 Sales and EPS Outlook
Philadelphia, PA — Five Below reported financial results for the third quarter and year to date period ended November 1, 2025.
For the third quarter ended November 1, 2025 :
- Net sales increased by 23.1% to $1,038.3 million from $843.7 million in the third quarter of fiscal 2024; comparable sales increased by 14.3%.
- The Company opened 49 net new stores and ended the quarter with 1,907 stores in 44 states. This represents an increase in stores of 9.0% from the end of the third quarter of fiscal 2024.
- Operating income was $43.3 million compared to an operating loss of $0.6 million in the third quarter of fiscal 2024. Adjusted operating income(1) was $45.1 million compared to $27.6 million in the third quarter of fiscal 2024.
- The effective tax rate was 25.7% compared to 23.4% in the third quarter of fiscal 2024.
- Net income was $36.5 million compared to $1.7 million in the third quarter of fiscal 2024. Adjusted net income(1) was $37.8 million compared to $23.3 million in the third quarter of fiscal 2024.
- Diluted income per common share was $0.66 compared to $0.03 in the third quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.68 compared to $0.42 in the third quarter of fiscal 2024.
Winnie Park, CEO of Five Below, said, “We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth. This outstanding performance reflects our Crew’s great execution of our customer-centric strategy: delivering trend-right merchandise at exceptional value, connecting with our customers through compelling marketing campaigns, and creating amazing shopping experiences that truly resonate.”
Ms. Park continued, “We are raising our guidance for fiscal 2025 to reflect these strong third quarter results and our current outlook for the fourth quarter. Our dedicated teams are collaborating across the company and delivering excellent end-to-end execution, in service of our customer, the KID and the KID in all of us. As we head into the holiday season, we are well-positioned to delight our customers with unique gifts and stocking stuffers at incredible value in a fun shopping environment.”
For the year to date period ended November 1, 2025 :
- Net sales increased by 22.1% to $3.04 billion from $2.49 billion in the year to date period of fiscal 2024; comparable sales increased by 11.3%.
- The Company opened 136 net new stores compared to 205 new stores in the year to date period of fiscal 2024.
- Operating income was $146.5 million compared to $77.1 million in the year to date period of fiscal 2024. Adjusted operating income(2) was $159.8 million compared to $102.8 million in the year to date period of fiscal 2024.
- The effective tax rate was 26.4% compared to 24.7% in the year to date period of fiscal 2024.
- Net income was $120.4 million compared to $66.2 million in the year to date period of fiscal 2024. Adjusted net income(2) was $130.2 million compared to $85.5 million in the year to date period of fiscal 2024.
- Diluted income per common share was $2.17 compared to $1.20 in the year to date period of fiscal 2024. Adjusted diluted income per common share(2) was $2.35 compared to $1.55 in the year to date period of fiscal 2024.
Fourth Quarter and Fiscal 2025 Outlook:
The Company expects the following results for the fourth quarter and full year of fiscal 2025. This outlook includes the expected impact of tariffs currently in place.
For the fourth quarter of Fiscal 2025 :
- Net sales are expected to be in the range of $1.58 billion to $1.61 billion based on opening approximately 14 net new stores and assumes an approximate 6% to 8% increase in comparable sales.
- Net income is expected to be in the range of $186 million to $196 million. Adjusted net income(3) is expected to be in the range of $187 million to $197 million.
- Diluted income per common share is expected to be in the range of $3.34 to $3.52 on approximately 55.6 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $3.36 to $3.54.
- This outlook does not include the impact of share repurchases, if any.
(3)Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, net of income tax impacts.
For the full year of Fiscal 2025 :
- Net sales are expected to be in the range of $4.62 billion to $4.65 billion based on opening approximately 150 net new stores and assumes an approximate 9.4% to 10.1% increase in comparable sales.
- Net income is expected to be in the range of $306 million to $316 million. Adjusted net income(4) is expected to be in the range of $317 million to $327 million.
- Diluted income per common share is expected to be in the range of $5.51 to $5.69 on approximately 55.5 million diluted weighted average shares outstanding. Adjusted diluted income per common share(4) is expected to be in the range of $5.71 to $5.89.
- Gross capital expenditures are expected to be approximately $200 million.
- This outlook does not include the impact of share repurchases, if any.
| FIVE BELOW, INC. Consolidated Balance Sheets (Unaudited) (in thousands) |
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| November 1, 2025 | February 1, 2025 | November 2, 2024 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 350,983 | $ | 331,718 | $ | 169,702 | ||
| Short-term investment securities | 173,515 | 197,073 | 46,941 | |||||
| Inventories | 1,112,263 | 659,500 | 817,832 | |||||
| Prepaid income taxes and tax receivable | 12,527 | 4,649 | 20,348 | |||||
| Prepaid expenses and other current assets | 110,834 | 158,427 | 157,396 | |||||
| Total current assets | 1,760,122 | 1,351,367 | 1,212,219 | |||||
| Property and equipment, net | 1,252,212 | 1,261,728 | 1,259,768 | |||||
| Operating lease assets | 1,743,865 | 1,706,542 | 1,692,978 | |||||
| Long-term investment securities | 11,261 | — | — | |||||
| Other assets | 21,858 | 19,937 | 20,354 | |||||
| $ | 4,789,318 | $ | 4,339,574 | $ | 4,185,319 | |||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | — | $ | — | $ | — | ||
| Accounts payable | 519,651 | 260,343 | 352,180 | |||||
| Income taxes payable | 82 | 51,998 | — | |||||
| Accrued salaries and wages | 57,583 | 19,743 | 28,758 | |||||
| Other accrued expenses | 184,530 | 149,495 | 143,388 | |||||
| Operating lease liabilities | 335,087 | 274,863 | 351,062 | |||||
| Total current liabilities | 1,096,933 | 756,442 | 875,388 | |||||
| Other long-term liabilities | 8,760 | 8,210 | 8,962 | |||||
| Long-term operating lease liabilities | 1,679,106 | 1,706,704 | 1,616,964 | |||||
| Deferred income taxes | 54,283 | 59,891 | 68,153 | |||||
| Total liabilities | 2,839,082 | 2,531,247 | 2,569,467 | |||||
| Shareholders’ equity: | ||||||||
| Common stock | 550 | 549 | 549 | |||||
| Additional paid-in capital | 173,964 | 152,471 | 147,453 | |||||
| Retained earnings | 1,775,722 | 1,655,307 | 1,467,850 | |||||
| Total shareholders’ equity | 1,950,236 | 1,808,327 | 1,615,852 | |||||
| $ | 4,789,318 | $ | 4,339,574 | $ | 4,185,319 | |||
| FIVE BELOW, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
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| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||
| Net sales | $ | 1,038,293 | $ | 843,710 | $ | 3,035,667 | $ | 2,485,642 | ||||
| Cost of goods sold (exclusive of items shown separately below) | 686,873 | 585,668 | 2,017,965 | 1,692,294 | ||||||||
| Selling, general and administrative expenses | 259,238 | 215,367 | 728,054 | 594,362 | ||||||||
| Depreciation and amortization | 48,877 | 43,281 | 143,131 | 121,933 | ||||||||
| Operating income (loss) | 43,305 | (606 | ) | 146,517 | 77,053 | |||||||
| Interest income and other income, net | 5,813 | 2,808 | 17,000 | 10,852 | ||||||||
| Income before income taxes | 49,118 | 2,202 | 163,517 | 87,905 | ||||||||
| Income tax expense | 12,613 | 515 | 43,102 | 21,751 | ||||||||
| Net income | $ | 36,505 | $ | 1,687 | $ | 120,415 | $ | 66,154 | ||||
| Basic income per common share | $ | 0.66 | $ | 0.03 | $ | 2.19 | $ | 1.20 | ||||
| Diluted income per common share | $ | 0.66 | $ | 0.03 | $ | 2.17 | $ | 1.20 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic shares | 55,151,044 | 55,007,054 | 55,089,878 | 55,067,467 | ||||||||
| Diluted shares | 55,570,844 | 55,110,433 | 55,383,515 | 55,152,976 | ||||||||
| FIVE BELOW, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
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| Thirty-Nine Weeks Ended | |||||||
| November 1, 2025 | November 2, 2024 | ||||||
| Operating activities: | |||||||
| Net income | $ | 120,415 | $ | 66,154 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 143,131 | 121,933 | |||||
| Share-based compensation expense | 26,172 | 11,303 | |||||
| Deferred income tax (benefit) expense | (5,608 | ) | 1,410 | ||||
| Other non-cash expenses | 946 | 861 | |||||
| Changes in operating assets and liabilities: | |||||||
| Inventories | (452,763 | ) | (233,205 | ) | |||
| Prepaid income taxes and tax receivable | (7,878 | ) | (15,514 | ) | |||
| Prepaid expenses and other assets | 45,564 | (6,889 | ) | ||||
| Accounts payable | 256,202 | 96,900 | |||||
| Income taxes payable | (51,916 | ) | (41,772 | ) | |||
| Accrued salaries and wages | 37,840 | (1,270 | ) | ||||
| Operating leases | (4,697 | ) | 45,914 | ||||
| Other accrued expenses | 38,125 | 21,288 | |||||
| Net cash provided by operating activities | 145,533 | 67,113 | |||||
| Investing activities: | |||||||
| Purchases of investment securities and other investments | (246,311 | ) | (4,508 | ) | |||
| Sales, maturities, and redemptions of investment securities | 258,608 | 245,696 | |||||
| Capital expenditures | (133,960 | ) | (271,855 | ) | |||
| Net cash used in investing activities | (121,663 | ) | (30,667 | ) | |||
| Financing activities: | |||||||
| Net proceeds from issuance of common stock | 477 | 600 | |||||
| Repurchase and retirement of common stock | — | (40,226 | ) | ||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 1 | 1 | |||||
| Common shares withheld for taxes | (5,083 | ) | (6,868 | ) | |||
| Net cash used in financing activities | (4,605 | ) | (46,493 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 19,265 | (10,047 | ) | ||||
| Cash and cash equivalents at beginning of period | 331,718 | 179,749 | |||||
| Cash and cash equivalents at end of period | $ | 350,983 | $ | 169,702 | |||
| FIVE BELOW, INC. GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
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| Reconciliation of gross profit to adjusted gross profit |
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| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||
| Gross profit(5) | $ | 351,420 | $ | 258,042 | $ | 1,017,702 | $ | 793,348 | |||
| Adjustments: | |||||||||||
| Retention awards(6) | 366 | 444 | 1,146 | 597 | |||||||
| Cost-optimization initiatives(7) | — | 378 | 4,100 | 378 | |||||||
| Non-recurring lease acquisition costs(8) | — | — | 495 | — | |||||||
| Non-recurring inventory write-off | — | 21,208 | — | 21,208 | |||||||
| Adjusted gross profit(9) | $ | 351,786 | $ | 280,072 | $ | 1,023,443 | $ | 815,531 | |||
Reconciliation of operating income, as reported, to adjusted operating income
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||
| Operating income (loss), as reported | $ | 43,305 | $ | (606 | ) | $ | 146,517 | $ | 77,053 | ||||
| Adjustments: | |||||||||||||
| Retention awards(6) | 1,770 | 4,931 | 6,967 | 6,578 | |||||||||
| Cost-optimization initiatives(7) | — | 1,544 | 4,960 | 1,544 | |||||||||
| Non-recurring lease acquisition costs(8) | — | — | 495 | — | |||||||||
| Non-recurring inventory write-off | — | 21,208 | 830 | 21,208 | |||||||||
| Non-recurring employment-related litigation | — | — | — | 1,976 | |||||||||
| Non-recurring stock compensation benefit | — | — | — | (6,116 | ) | ||||||||
| Non-recurring asset disposal | — | 513 | — | 513 | |||||||||
| Adjusted operating income(9) | $ | 45,075 | $ | 27,590 | $ | 159,769 | $ | 102,756 | |||||
Reconciliation of net income, as reported, to adjusted net income
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||
| Net income, as reported | $ | 36,505 | $ | 1,687 | $ | 120,415 | $ | 66,154 | ||||
| Adjustments: | ||||||||||||
| Retention awards, net of tax(6) | 1,315 | 3,778 | 5,130 | 4,950 | ||||||||
| Cost-optimization initiatives, net of tax(7) | — | 1,183 | 3,652 | 1,162 | ||||||||
| Non-recurring lease acquisition costs, net of tax(8) | — | — | 364 | — | ||||||||
| Non-recurring inventory write-off, net of tax | — | 16,248 | 612 | 15,961 | ||||||||
| Non-recurring employment-related litigation, net of tax | — | — | — | 1,487 | ||||||||
| Non-recurring stock compensation benefit, net of tax | — | — | — | (4,603 | ) | |||||||
| Non-recurring asset disposal, net of tax | — | 393 | — | 386 | ||||||||
| Adjusted net income(9) | $ | 37,820 | $ | 23,289 | $ | 130,173 | $ | 85,497 | ||||
Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||
| Diluted income per common share, as reported | $ | 0.66 | $ | 0.03 | $ | 2.17 | $ | 1.20 | ||||
| Adjustments: | ||||||||||||
| Retention awards per share(6) | 0.02 | 0.07 | 0.09 | 0.09 | ||||||||
| Cost-optimization initiatives per share(7) | — | 0.02 | 0.07 | 0.02 | ||||||||
| Non-recurring lease acquisition costs per share(8) | — | 0.01 | ||||||||||
| Non-recurring inventory write-off per share | — | 0.29 | 0.01 | 0.29 | ||||||||
| Non-recurring employment related litigation per share | — | — | — | 0.03 | ||||||||
| Non-recurring stock compensation benefit per share | — | — | — | (0.08 | ) | |||||||
| Non-recurring asset disposal per share | — | 0.01 | — | 0.01 | ||||||||
| Adjusted diluted income per common share(9) | $ | 0.68 | $ | 0.42 | $ | 2.35 | $ | 1.55 | ||||
(5)Gross profit is equal to our net sales less our cost of goods sold.
(6)Retention awards relate to the on-going expense recognition of equity granted to certain individuals in fiscal 2024 during the CEO transition that will be earned and have vestings through fiscal 2026.
(7)Represents charges related to the cost-optimization of certain functions.
(8)Represents non-recurring costs incurred with the strategic acquisition of certain leases.
(9)Components may not add to total due to rounding.
