Q1 Net Sales Increase of 19.5% to $970.5 million; Comparable Sales Increase of 7.1%

Q1 GAAP Diluted EPS of $0.75, Q1 Adjusted Diluted EPS of $0.86

Increases Full Year 2025 Sales Guidance; Raises Low End of EPS Guidance Range

Announces CFO Transition

Philadelphia, PA — Five Below reported  financial results for the first quarter ended May 3, 2025.

For the first quarter ended May 3, 2025:

• Net sales increased by 19.5% to $970.5 million from $811.9 million in the first quarter of fiscal 2024; comparable sales increased by 7.1%.
• The Company opened 55 new stores and ended the quarter with 1,826 stores in 44 states. This represents an increase in stores of 13.8% from the end of the first quarter of fiscal 2024.
• Operating income was $50.8 million compared to $36.2 million in the first quarter of fiscal 2024. Adjusted operating income(1) was $59.6 million compared to $38.1 million in the first quarter of fiscal 2024.
• The effective tax rate was 27.2% compared to 23.5% in the first quarter of fiscal 2024.
• Net income was $41.1 million compared to $31.5 million in the first quarter of fiscal 2024. Adjusted net income(1) was $47.5 million compared to $33.0 million in the first quarter of fiscal 2024.
• Diluted income per common share was $0.75 compared to $0.57 in the first quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.86 compared to $0.60 in the first 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 accounting principles generally accepted 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, “Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value and a fun store experience. We were pleased to see broad-based strength across the majority of our merchandising worlds, resulting in a transaction-driven 7.1% increase in comparable sales, as well as strong performance from our new stores. Our teams executed our customer-centric strategy at a very high level, and these results reflect the progress we are making across merchandising, marketing and end-to-end operations.”

Ms. Park continued, “Looking ahead, this unwavering focus on the core customer combined with disciplined execution of our strategy and the agility of our teams position us to deliver our financial and operational objectives as we navigate the impact of tariffs and the associated uncertainty in the current global trade environment.”

CFO Transition
The Company’s Chief Financial Officer and Treasurer, Kristy Chipman, has informed Five Below of her intention to step down for personal reasons.

“I want to thank Kristy for her partnership and the many contributions she has made to Five Below during her time here. We wish her the very best in her future endeavors,” said Ms. Park. “While we search for a new CFO, I am grateful our COO Ken Bull will also take on the role of interim CFO. Previously, Ken was our CFO for more than ten years, which gives us a seamless transition.”

Second Quarter and Fiscal 2025 Outlook:
The Company expects the following results for the second quarter and full year of fiscal 2025. This guidance includes the expected impact of tariffs currently in place.

For the second quarter of Fiscal 2025:

• Net sales are expected to be in the range of $975 million to $995 million based on opening approximately 30 net new stores and assumes an approximate 7% to 9% increase in comparable sales.
• Net income is expected to be in the range of $25 million to $32 million. Adjusted net income(2) is expected to be in the range of $28 million to $34 million.
• Diluted income per common share is expected to be in the range of $0.45 to $0.57 on approximately 55.3 million diluted weighted average shares outstanding. Adjusted diluted income per common share(2) is expected to be in the range of $0.50 to $0.62.
• 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 $4.33 billion to $4.42 billion based on opening approximately 150 net new stores and assumes an approximate 3% to 5% increase in comparable sales.
• Net income is expected to be in the range of $223 million to $249 million. Adjusted net income(3) is expected to be in the range of $235 million to $261 million.
• Diluted income per common share is expected to be in the range of $4.04 to $4.51 on approximately 55.3 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $4.25 to $4.72.
• Gross capital expenditures are expected to be approximately $210 million to $230 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, costs incurred with the strategic acquisition of certain leases and execution of the inventory write-off.