Five Below, Inc. Announces Second Quarter Fiscal 2026 Financial Results
Q2 Net Sales Increase of 22.9% to $1.3 Billion; Comparable Sales Increase of 14.1%
Q2 GAAP Diluted EPS of $3.99, Q2 Adjusted Diluted EPS of $1.68
Increases Full Year 2026 Sales and EPS Outlook
Philadelphia, PA — Five Below announced financial results for the second quarter and year to date period ended August 1, 2026.
For the second quarter ended August 1, 2026:
- Net sales increased by 22.9% to $1.26 billion from $1.03 billion in the second quarter of fiscal 2025; comparable sales increased by 14.1%.
- The Company opened 52 net new stores and ended the quarter with 2,022 stores in 46 states. This represents an increase in stores of 8.8% from the end of the second quarter of fiscal 2025.
- Operating income was $275.4 million compared to $52.4 million in the second quarter of fiscal 2025. Adjusted operating income(1) was $113.2 million compared to $55.1 million in the second quarter of fiscal 2025.
- The effective tax rate was 23.9% compared to 26.2% in the second quarter of fiscal 2025.
- Net income was $221.4 million compared to $42.8 million in the second quarter of fiscal 2025. Adjusted net income(1) was $93.4 million compared to $44.8 million in the second quarter of fiscal 2025.
- Diluted income per common share was $3.99 compared to $0.77 in the second quarter of fiscal 2025. Adjusted diluted income per common share(1) was $1.68 compared to $0.81 in the second quarter of fiscal 2025.
- The Company repurchased approximately 311,000 shares in the second quarter of fiscal 2026 at a cost of approximately $60.0 million.
Winnie Park, CEO of Five Below, said, “We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy. Our Crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop. We remain maniacally focused on delivering our brand promise to be THE destination for the KID and the KID in all of us.”
Ms. Park continued, “Just as importantly, our Crew continues to drive new store growth at a higher level of executional excellence to bring Five Below to new communities. The balance between new store growth and double-digit comparable sales growth for the past five quarters is a testament to our operating flywheel gaining momentum. With a strong first half behind us and significant opportunities ahead, we are raising our full year outlook and look forward to delivering special curtain up moments for our customers through the holiday season and beyond.”
For the year to date period ended August 1, 2026:
- Net sales increased by 27.5% to $2.55 billion from $2.00 billion in the year to date period of fiscal 2025; comparable sales increased by 18.3%.
- The Company opened 101 net new stores compared to 87 net new stores in the year to date period of fiscal 2025.
- Operating income was $429.6 million compared to $103.2 million in the year to date period of fiscal 2025. Adjusted operating income(2) was $268.0 million compared to $114.7 million in the year to date period of fiscal 2025.
- The effective tax rate was 24.0% compared to 26.7% in the year to date period of fiscal 2025.
- Net income was $344.5 million compared to $83.9 million in the year to date period of fiscal 2025. Adjusted net income(2) was $217.1 million compared to $92.3 million in the year to date period of fiscal 2025.
- Diluted income per common share was $6.20 compared to $1.52 in the year to date period of fiscal 2025. Adjusted diluted income per common share(2) was $3.91 compared to $1.67 in the year to date period of fiscal 2025.
(2) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States (“GAAP”) is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”
Third Quarter and Fiscal 2026 Outlook:
The Company expects the following results for the third quarter and full year of fiscal 2026. This outlook includes the expected impact of tariff rates currently in place and excludes the impact of future tariff refunds and share repurchases, if any.
For the third quarter of Fiscal 2026:
| Current Outlook | |
| Net sales | $1.21 billion to $1.23 billion |
| Net new stores | approximately 40 |
| Comparable sales | +8% to +10% |
| Net income | $56 million to $63 million |
| Diluted income per common share | $1.01 to $1.13 |
| Diluted weighted average shares outstanding | 55.4 million |
For the full year of Fiscal 2026:
| Current Outlook | Prior Outlook | |
| Net sales | $5.63 billion to $5.71 billion | $5.40 billion to $5.48 billion |
| Net new stores | approximately 150 | approximately 150 |
| Comparable sales | +10% to +12% | +6% to +8% |
| Net income | $672 million to $698 million | $480 million to $502 million |
| Adjusted net income(3) | $546 million to $572 million | $482 million to $504 million |
| Diluted income per common share | $12.10 to $12.58 | $8.62 to $9.02 |
| Adjusted diluted income per common share(3) | $9.83 to $10.31 | $8.65 to $9.05 |
| Diluted weighted average shares outstanding | 55.5 million | 55.7 million |
| Gross capital expenditures | $250 million to $260 million | $230 million to $250 million |
(3) Adjusted net income and adjusted diluted income per common share excludes the impact of tariff refunds and related interest recorded through the year to date period ended August 1, 2026 and retention awards granted in fiscal 2024, net of income tax impacts.
| FIVE BELOW, INC. Consolidated Balance Sheets (Unaudited) (in thousands) |
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| August 1, 2026 |
January 31, 2026 |
August 2, 2025 |
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| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 561,083 | $ | 723,699 | $ | 562,746 | |||||
| Short-term investment securities | 626,821 | 208,508 | 107,418 | ||||||||
| Inventories | 941,162 | 846,609 | 799,602 | ||||||||
| Prepaid income taxes and tax receivable | 5,574 | 5,210 | 4,657 | ||||||||
| Prepaid expenses and other current assets | 100,712 | 132,697 | 110,495 | ||||||||
| Total current assets | 2,235,352 | 1,916,723 | 1,584,918 | ||||||||
| Property and equipment, net | 1,250,477 | 1,234,331 | 1,253,808 | ||||||||
| Operating lease assets | 1,766,069 | 1,765,704 | 1,746,255 | ||||||||
| Other assets | 25,928 | 20,261 | 21,557 | ||||||||
| $ | 5,277,826 | $ | 4,937,019 | $ | 4,606,538 | ||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Line of credit | $ | — | $ | — | $ | — | |||||
| Accounts payable | 436,734 | 368,381 | 371,801 | ||||||||
| Income taxes payable | 1,388 | 56,644 | — | ||||||||
| Accrued salaries and wages | 44,341 | 67,505 | 36,532 | ||||||||
| Other accrued expenses | 215,896 | 160,328 | 204,926 | ||||||||
| Operating lease liabilities | 307,637 | 301,148 | 311,365 | ||||||||
| Total current liabilities | 1,005,996 | 954,006 | 924,624 | ||||||||
| Other long-term liabilities | 11,318 | 8,667 | 10,288 | ||||||||
| Long-term operating lease liabilities | 1,731,001 | 1,731,041 | 1,707,261 | ||||||||
| Deferred income taxes | 53,388 | 50,015 | 57,118 | ||||||||
| Total liabilities | 2,801,703 | 2,743,729 | 2,699,291 | ||||||||
| Shareholders’ equity: | |||||||||||
| Common stock | 550 | 551 | 550 | ||||||||
| Additional paid-in capital | 117,174 | 178,791 | 167,480 | ||||||||
| Retained earnings | 2,358,399 | 2,013,948 | 1,739,217 | ||||||||
| Total shareholders’ equity | 2,476,123 | 2,193,290 | 1,907,247 | ||||||||
| $ | 5,277,826 | $ | 4,937,019 | $ | 4,606,538 | ||||||
| FIVE BELOW, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
|||||||||||||||
| Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
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| August 1, 2026 |
August 2, 2025 |
August 1, 2026 |
August 2, 2025 |
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| Net sales | $ | 1,261,493 | $ | 1,026,847 | $ | 2,547,095 | $ | 1,997,374 | |||||||
| Cost of goods sold (exclusive of items shown separately below) | 649,070 | 684,478 | 1,456,030 | 1,331,092 | |||||||||||
| Selling, general and administrative expenses | 285,870 | 242,314 | 559,146 | 468,816 | |||||||||||
| Depreciation and amortization | 51,203 | 47,690 | 102,326 | 94,254 | |||||||||||
| Operating income | 275,350 | 52,365 | 429,593 | 103,212 | |||||||||||
| Interest income and other income, net | 15,418 | 5,540 | 23,673 | 11,187 | |||||||||||
| Income before income taxes | 290,768 | 57,905 | 453,266 | 114,399 | |||||||||||
| Income tax expense | 69,373 | 15,143 | 108,815 | 30,489 | |||||||||||
| Net income | $ | 221,395 | $ | 42,762 | $ | 344,451 | $ | 83,910 | |||||||
| Basic income per common share | $ | 4.02 | $ | 0.78 | $ | 6.24 | $ | 1.52 | |||||||
| Diluted income per common share | $ | 3.99 | $ | 0.77 | $ | 6.20 | $ | 1.52 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic shares | 55,130,589 | 55,072,140 | 55,196,391 | 55,059,126 | |||||||||||
| Diluted shares | 55,474,573 | 55,389,479 | 55,540,532 | 55,289,719 | |||||||||||
| FIVE BELOW, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
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| Twenty-Six Weeks Ended | ||||||||
| August 1, 2026 | August 2, 2025 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 344,451 | $ | 83,910 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 102,326 | 94,254 | ||||||
| Share-based compensation expense | 15,029 | 18,419 | ||||||
| Deferred income tax expense (benefit) | 3,373 | (2,773 | ) | |||||
| Other non-cash expenses | 4,768 | 754 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | (94,553 | ) | (140,102 | ) | ||||
| Prepaid income taxes and tax receivable | (364 | ) | (8 | ) | ||||
| Prepaid expenses and other assets | 26,246 | 46,240 | ||||||
| Accounts payable | 63,694 | 110,636 | ||||||
| Income taxes payable | (55,256 | ) | (51,998 | ) | ||||
| Accrued salaries and wages | (23,164 | ) | 16,789 | |||||
| Operating leases | 6,084 | (2,654 | ) | |||||
| Other accrued expenses | 50,076 | 52,191 | ||||||
| Net cash provided by operating activities | 442,710 | 225,658 | ||||||
| Investing activities: | ||||||||
| Purchases of investment securities and other investments | (540,207 | ) | (95,648 | ) | ||||
| Sales, maturities, and redemptions of investment securities | 121,895 | 185,303 | ||||||
| Capital expenditures | (110,417 | ) | (80,928 | ) | ||||
| Net cash (used in) provided by investing activities | (528,729 | ) | 8,727 | |||||
| Financing activities: | ||||||||
| Net proceeds from issuance of common stock | 462 | 477 | ||||||
| Repurchase and retirement of common stock | (60,363 | ) | — | |||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 2 | 1 | ||||||
| Common shares withheld for taxes | (16,698 | ) | (3,835 | ) | ||||
| Net cash used in financing activities | (76,597 | ) | (3,357 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (162,616 | ) | 231,028 | |||||
| Cash and cash equivalents at beginning of period | 723,699 | 331,718 | ||||||
| Cash and cash equivalents at end of period | $ | 561,083 | $ | 562,746 | ||||
| FIVE BELOW, INC. GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
Reconciliation of gross profit to adjusted gross profit
| Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
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| August 1, 2026 | August 2, 2025 |
August 1, 2026 | August 2, 2025 |
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| Gross profit(4) | $ | 612,423 | $ | 342,369 | $ | 1,091,065 | $ | 666,282 | ||||||||
| Adjustments: | ||||||||||||||||
| Retention awards(5) | 255 | 390 | 255 | 780 | ||||||||||||
| Cost-optimization initiatives(6) | — | — | — | 4,100 | ||||||||||||
| Non-recurring lease acquisition costs(7) | — | 495 | — | 495 | ||||||||||||
| IEEPA tariff refunds(8) | (163,583 | ) | — | (163,583 | ) | — | ||||||||||
| Adjusted gross profit(9) | $ | 449,095 | $ | 343,254 | $ | 927,737 | $ | 671,657 | ||||||||
Reconciliation of operating income, as reported, to adjusted operating income
| Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
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| August 1, 2026 | August 2, 2025 |
August 1, 2026 | August 2, 2025 |
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| Operating income, as reported | $ | 275,350 | $ | 52,365 | $ | 429,593 | $ | 103,212 | ||||||||
| Adjustments: | ||||||||||||||||
| Retention awards(5) | 1,413 | 2,259 | 1,954 | 5,196 | ||||||||||||
| Cost-optimization initiatives(6) | — | — | — | 4,960 | ||||||||||||
| Non-recurring lease acquisition costs(7) | — | 495 | — | 495 | ||||||||||||
| Non-recurring inventory write-off | — | — | — | 830 | ||||||||||||
| IEEPA tariff refunds(8) | (163,583 | ) | — | (163,583 | ) | — | ||||||||||
| Adjusted operating income(9) | $ | 113,180 | $ | 55,119 | $ | 267,964 | $ | 114,694 | ||||||||
Reconciliation of net income, as reported, to adjusted net income
| Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
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| August 1, 2026 | August 2, 2025 |
August 1, 2026 | August 2, 2025 |
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| Net income, as reported | $ | 221,395 | $ | 42,762 | $ | 344,451 | $ | 83,910 | |||||||
| Adjustments: | |||||||||||||||
| Retention awards, net of tax(5) | 1,076 | 1,668 | 1,485 | 3,811 | |||||||||||
| Cost-optimization initiatives, net of tax(6) | — | — | — | 3,638 | |||||||||||
| Non-recurring lease acquisition costs, net of tax(7) | — | 366 | — | 363 | |||||||||||
| Non-recurring inventory write-off, net of tax | — | — | — | 609 | |||||||||||
| IEEPA tariff refunds, net of tax(10) | (129,075 | ) | — | (128,823 | ) | — | |||||||||
| Adjusted net income(9) | $ | 93,397 | $ | 44,796 | $ | 217,114 | $ | 92,332 | |||||||
Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share
| Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
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| August 1, 2026 | August 2, 2025 |
August 1, 2026 | August 2, 2025 |
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| Diluted income per common share, as reported | $ | 3.99 | $ | 0.77 | $ | 6.20 | $ | 1.52 | ||||||||
| Adjustments: | ||||||||||||||||
| Retention awards per share(5) | 0.02 | 0.03 | 0.03 | 0.07 | ||||||||||||
| Cost-optimization initiatives per share(6) | — | — | — | 0.07 | ||||||||||||
| Non-recurring lease acquisition costs per share(7) | — | 0.01 | — | 0.01 | ||||||||||||
| Non-recurring inventory write-off per share | — | — | — | 0.01 | ||||||||||||
| IEEPA tariff refunds per share(10) | (2.33 | ) | — | (2.32 | ) | — | ||||||||||
| Adjusted diluted income per common share(9) | $ | 1.68 | $ | 0.81 | $ | 3.91 | $ | 1.67 | ||||||||
(4) Gross profit, a non-GAAP financial measure, is equal to our net sales less our cost of goods sold.
(5) Retention awards relate to the on-going expense recognition of cash and equity granted to certain individuals in fiscal 2024 during the CEO transition that were earned and vested through August 2026.
(6) Represents charges related to the cost-optimization of certain functions.
(7) Represents non-recurring costs incurred with the strategic acquisition of certain leases.
(8) Represents International Emergency Economic Powers Act (“IEEPA”) tariff refunds.
(9) Components may not add to total due to rounding.
(10) Represents IEEPA tariff refunds and related interest.
