Five Below Reports Q2 Earnings
Q2 Net Sales Increase of 23.7% to $1.0 Billion; Comparable Sales Increase of 12.4%
Q2 GAAP Diluted EPS of $0.77, Q2 Adjusted Diluted EPS of $0.81
Increases Full Year 2025 Sales and EPS Guidance
Philadelphia, PA — Five Below reported financial results for the second quarter and year to date period ended August 2, 2025.
For the second quarter ended August 2, 2025:
- Net sales increased by 23.7% to $1,026.8 million from $830.1 million in the second quarter of fiscal 2024; comparable sales increased by 12.4%.
- The Company opened 32 net new stores and ended the quarter with 1,858 stores in 44 states. This represents an increase in stores of 11.5% from the end of the second quarter of fiscal 2024.
- Operating income was $52.4 million compared to $41.5 million in the second quarter of fiscal 2024. Adjusted operating income(1) was $55.1 million compared to $37.0 million in the second quarter of fiscal 2024.
- The effective tax rate was 26.2% compared to 25.9% in the second quarter of fiscal 2024.
- Net income was $42.8 million compared to $33.0 million in the second quarter of fiscal 2024. Adjusted net income(1) was $44.8 million compared to $29.7 million in the second quarter of fiscal 2024.
- Diluted income per common share was $0.77 compared to $0.60 in the second quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.81 compared to $0.54 in the second quarter of fiscal 2024.
(1) 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.”
Winnie Park, CEO of Five Below, said, “We are excited to deliver second quarter results that exceeded our sales and earnings expectations. These results demonstrate the effectiveness of our strategy and are a testament to the hard work, dedication and tight collaboration of our teams across the company, especially in an ever-changing tariff environment. We have been maniacally focused on executing with excellence, specifically curating Wow! newness in our assortment, simplifying our pricing while maintaining extreme value, improving in-stock levels and optimizing product flow. Importantly, our results demonstrate that our customers are recognizing us as the destination for fun at great value for the KID and the KID in all of us.”
“Looking ahead, we remain laser-focused on delivering the magic of Five Below as we transition to Halloween and then the all-important holiday season. We will continue to surprise and delight our customers with trend-right products, exceptional value, and an amazing experience,” Ms. Park added.
For the year to date period ended August 2, 2025:
- Net sales increased by 21.6% to $1,997.4 million from $1,641.9 million in the year to date period of fiscal 2024; comparable sales increased by 9.8%.
- The Company opened 87 net new stores compared to 123 new stores in the year to date period of fiscal 2024.
- Operating income was $103.2 million compared to $77.7 million in the year to date period of fiscal 2024. Adjusted operating income(1) was $114.7 million compared to $75.2 million in the year to date period of fiscal 2024.
- The effective tax rate was 26.7% compared to 24.8% in the year to date period of fiscal 2024.
- Net income was $83.9 million compared to $64.5 million in the year to date period of fiscal 2024. Adjusted net income(1) was $92.3 million compared to $62.6 million in the year to date period of fiscal 2024.
- Diluted income per common share was $1.52 compared to $1.17 in the year to date period of fiscal 2024. Adjusted diluted income per common share(1) was $1.67 compared to $1.13 in the year to date period of fiscal 2024.
(1) 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 2025 Outlook:
The Company expects the following results for the third quarter and full year of fiscal 2025. This guidance includes the expected impact of tariffs currently in place.
For the third quarter of Fiscal 2025:
- Net sales are expected to be in the range of $950 million to $970 million based on opening approximately 50 net new stores and assumes an approximate 5% to 7% increase in comparable sales.
- Net income is expected to be in the range of $5 million to $12 million. Adjusted net income(2) is expected to be in the range of $7 million to $13 million.
- Diluted income per common share is expected to be in the range of $0.09 to $0.21 on approximately 55.6 million diluted weighted average shares outstanding. Adjusted diluted income per common share(2) is expected to be in the range of $0.12 to $0.24.
- This outlook does not include the impact of share repurchases, if any.
(2) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards and costs incurred with the strategic acquisition of certain leases, net of income tax impacts.
For the full year of Fiscal 2025:
- Net sales are expected to be in the range of $4.44 billion to $4.52 billion based on opening approximately 150 net new stores and assumes an approximate 5% to 7% increase in comparable sales.
- Net income is expected to be in the range of $253 million to $275 million. Adjusted net income(3) is expected to be in the range of $264 million to $286 million.
- Diluted income per common share is expected to be in the range of $4.56 to $4.96 on approximately 55.4 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $4.76 to $5.16.
- Gross capital expenditures are expected to be approximately $210 million.
- 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, costs associated with cost-optimization initiatives, execution of the inventory write-off, and costs incurred with the strategic acquisition of certain leases, net of income tax impacts.
Investor Contact:
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations
215-207-2658
InvestorRelations@fivebelow.com
| FIVE BELOW, INC. Consolidated Balance Sheets (Unaudited) (in thousands) |
||||||||
| August 2, 2025 |
February 1, 2025 |
August 3, 2024 |
||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 562,746 | $ | 331,718 | $ | 209,039 | ||
| Short-term investment securities | 107,418 | 197,073 | 118,680 | |||||
| Inventories | 799,602 | 659,500 | 639,881 | |||||
| Prepaid income taxes and tax receivable | 4,657 | 4,649 | 14,140 | |||||
| Prepaid expenses and other current assets | 110,495 | 158,427 | 136,899 | |||||
| Total current assets | 1,584,918 | 1,351,367 | 1,118,639 | |||||
| Property and equipment, net | 1,253,808 | 1,261,728 | 1,246,880 | |||||
| Operating lease assets | 1,746,255 | 1,706,542 | 1,627,483 | |||||
| Other assets | 21,557 | 19,937 | 20,142 | |||||
| $ | 4,606,538 | $ | 4,339,574 | $ | 4,013,144 | |||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | — | $ | — | $ | — | ||
| Accounts payable | 371,801 | 260,343 | 255,965 | |||||
| Income taxes payable | — | 51,998 | — | |||||
| Accrued salaries and wages | 36,532 | 19,743 | 12,574 | |||||
| Other accrued expenses | 204,926 | 149,495 | 164,226 | |||||
| Operating lease liabilities | 311,365 | 274,863 | 252,440 | |||||
| Total current liabilities | 924,624 | 756,442 | 685,205 | |||||
| Other long-term liabilities | 10,288 | 8,210 | 8,662 | |||||
| Long-term operating lease liabilities | 1,707,261 | 1,706,704 | 1,642,055 | |||||
| Deferred income taxes | 57,118 | 59,891 | 69,481 | |||||
| Total liabilities | 2,699,291 | 2,531,247 | 2,405,403 | |||||
| Shareholders’ equity: | ||||||||
| Common stock | 550 | 549 | 549 | |||||
| Additional paid-in capital | 167,480 | 152,471 | 141,029 | |||||
| Retained earnings | 1,739,217 | 1,655,307 | 1,466,163 | |||||
| Total shareholders’ equity | 1,907,247 | 1,808,327 | 1,607,741 | |||||
| $ | 4,606,538 | $ | 4,339,574 | $ | 4,013,144 | |||
| FIVE BELOW, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
|||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||
| August 2, 2025 |
August 3, 2024 |
August 2, 2025 |
August 3, 2024 |
||||||||
| Net sales | $ | 1,026,847 | $ | 830,069 | $ | 1,997,374 | $ | 1,641,932 | |||
| Cost of goods sold (exclusive of items shown separately below) | 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 | |||||||
| Interest income and other income, net | 5,540 | 3,054 | 11,187 | 8,044 | |||||||
| Income before income taxes | 57,905 | 44,563 | 114,399 | 85,703 | |||||||
| Income tax expense | 15,143 | 11,563 | 30,489 | 21,236 | |||||||
| 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 | |||
| Weighted average shares outstanding: | |||||||||||
| Basic shares | 55,072,140 | 55,027,663 | 55,059,126 | 55,097,840 | |||||||
| Diluted shares | 55,389,479 | 55,042,588 | 55,289,719 | 55,148,893 | |||||||
| FIVE BELOW, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
| Twenty-Six Weeks Ended | |||||||
| August 2, 2025 |
August 3, 2024 |
||||||
| Operating activities: | |||||||
| Net income | $ | 83,910 | $ | 64,467 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 94,254 | 78,652 | |||||
| Share-based compensation expense | 18,419 | 4,728 | |||||
| Deferred income tax (benefit) expense | (2,773 | ) | 2,738 | ||||
| Other non-cash expenses | 754 | 196 | |||||
| Changes in operating assets and liabilities: | |||||||
| Inventories | (140,102 | ) | (55,254 | ) | |||
| Prepaid income taxes and tax receivable | (8 | ) | (9,306 | ) | |||
| Prepaid expenses and other assets | 46,240 | 13,856 | |||||
| Accounts payable | 110,636 | 887 | |||||
| Income taxes payable | (51,998 | ) | (41,772 | ) | |||
| Accrued salaries and wages | 16,789 | (17,454 | ) | ||||
| Operating leases | (2,654 | ) | 37,878 | ||||
| Other accrued expenses | 52,191 | 18,078 | |||||
| Net cash provided by operating activities | 225,658 | 97,694 | |||||
| Investing activities: | |||||||
| Purchases of investment securities and other investments | (95,648 | ) | (4,508 | ) | |||
| Sales, maturities, and redemptions of investment securities | 185,303 | 173,958 | |||||
| Capital expenditures | (80,928 | ) | (191,472 | ) | |||
| Net cash provided by (used in) investing activities | 8,727 | (22,022 | ) | ||||
| 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 | (3,835 | ) | (6,757 | ) | |||
| 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 beginning of period | 331,718 | 179,749 | |||||
| Cash and cash equivalents at end of period | $ | 562,746 | $ | 209,039 | |||
| 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 | ||||||||||||||
| August 2, 2025 |
August 3, 2024 |
August 2, 2025 |
August 3, 2024 |
||||||||||||
| Gross profit(4) | $ | 342,369 | $ | 271,786 | $ | 666,282 | $ | 535,306 | |||||||
| Adjustments: | |||||||||||||||
| Retention awards(5) | 390 | 153 | 780 | 153 | |||||||||||
| Cost-optimization initiatives(6) | — | — | 4,100 | — | |||||||||||
| Non-recurring lease acquisition costs(7) | 495 | — | 495 | — | |||||||||||
| Adjusted gross profit(8) | $ | 343,254 | $ | 271,939 | $ | 671,657 | $ | 535,459 | |||||||
| Reconciliation of operating income, as reported, to adjusted operating income | |||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
| August 2, 2025 |
August 3, 2024 |
August 2, 2025 |
August 3, 2024 |
||||||||||||
| Operating income, as reported | $ | 52,365 | $ | 41,509 | $ | 103,212 | $ | 77,659 | |||||||
| Adjustments: | |||||||||||||||
| Retention awards(5) | 2,259 | 1,647 | 5,196 | 1,647 | |||||||||||
| Cost-optimization initiatives(6) | — | — | 4,960 | — | |||||||||||
| Non-recurring lease acquisition costs(7) | 495 | — | 495 | — | |||||||||||
| Non-recurring employment-related litigation | — | — | — | 1,976 | |||||||||||
| Non-recurring stock compensation benefit | — | (6,116 | ) | — | (6,116 | ) | |||||||||
| Non-recurring inventory write-off | — | — | 830 | — | |||||||||||
| Adjusted operating income(8) | $ | 55,119 | $ | 37,040 | $ | 114,694 | $ | 75,166 | |||||||
| Reconciliation of net income, as reported, to adjusted net income | |||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
| August 2, 2025 |
August 3, 2024 |
August 2, 2025 |
August 3, 2024 |
||||||||||||
| Net income, as reported | $ | 42,762 | $ | 33,000 | $ | 83,910 | $ | 64,467 | |||||||
| Adjustments: | |||||||||||||||
| Retention awards, net of tax(5) | 1,668 | 1,220 | 3,811 | 1,239 | |||||||||||
| Cost-optimization initiatives, net of tax(6) | — | — | 3,638 | — | |||||||||||
| Non-recurring lease acquisition costs, net of tax(7) | 366 | — | 363 | — | |||||||||||
| Non-recurring employment-related litigation, net of tax | — | — | — | 1,486 | |||||||||||
| Non-recurring stock compensation benefit, net of tax | — | (4,532 | ) | — | (4,599 | ) | |||||||||
| Non-recurring inventory write-off, net of tax | — | — | 609 | — | |||||||||||
| Adjusted net income(8) | $ | 44,796 | $ | 29,688 | $ | 92,332 | $ | 62,592 | |||||||
| Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share | |||||||||||||||
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
| August 2, 2025 |
August 3, 2024 |
August 2, 2025 |
August 3, 2024 |
||||||||||||
| Diluted income per common share, as reported | $ | 0.77 | $ | 0.60 | $ | 1.52 | $ | 1.17 | |||||||
| Adjustments: | |||||||||||||||
| Retention awards per share(5) | 0.03 | 0.02 | 0.07 | 0.02 | |||||||||||
| Cost-optimization initiatives per share(6) | — | — | 0.07 | — | |||||||||||
| Non-recurring lease acquisition costs per share(7) | 0.01 | — | 0.01 | — | |||||||||||
| Non-recurring employment-related litigation per share | — | — | — | 0.03 | |||||||||||
| Non-recurring stock compensation benefit per share | — | (0.08 | ) | — | (0.08 | ) | |||||||||
| Non-recurring inventory write-off per share | — | — | 0.01 | — | |||||||||||
| Adjusted diluted income per common share(8) | $ | 0.81 | $ | 0.54 | $ | 1.67 | $ | 1.13 | |||||||
(4) Gross profit is equal to our net sales less our cost of goods sold.
(5) 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.
(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) Components may not add to total due to rounding.
Related Articles - Retail
