Five Below, Inc. Announces Robust Fourth Quarter and Fiscal 2025 Results

Key Financial Highlights

• Q4 Net Sales: Increased 24.3% year-over-year to \$1.73 billion, with comparable sales up 15.4%.
• FY2025 Net Sales: Increased 22.9% to \$4.76 billion; comparable sales up 12.8%.
• Q4 GAAP Diluted EPS: Up 26.3% to \$4.28; Q4 Adjusted Diluted EPS: Up 23.9% to \$4.31.
• FY2025 GAAP Diluted EPS: Up 40.7% to \$6.47; FY2025 Adjusted Diluted EPS: Up 32.3% to \$6.67.
• Store Expansion: 14 net new stores opened in Q4, ending with 1,921 stores in 46 states (up 8.5% YoY). 150 net new stores opened in FY2025 (down from 227 in FY2024).
• Operating Income: Q4: \$310.9 million (up from \$246.8 million); FY2025: \$457.4 million (up from \$323.8 million).
• Adjusted Operating Income: Q4: \$312.7 million (up from \$253.3 million); FY2025: \$472.4 million (up from \$356.1 million).
• Net Income: Q4: \$238.2 million (up from \$187.5 million); FY2025: \$358.6 million (up from \$253.6 million).
• Adjusted Net Income: Q4: \$239.6 million (up from \$192.4 million); FY2025: \$369.9 million (up from \$277.8 million).
• Cash Position: Cash and cash equivalents at year-end: \$723.7 million (up from \$331.7 million).
• Gross Capital Expenditures: Expected in FY2026: \$230-250 million.

Shareholder-Relevant and Price-Sensitive Information

• Strong Sales and Earnings Growth: Significant increases in net sales, earnings per share, and store count reflect robust consumer demand and effective execution of growth strategy. This is likely to positively impact share valuation.
• Store Expansion Pace: While store count increased, the pace slowed (150 net new stores in FY2025 versus 227 in FY2024), which may signal a shift in growth focus or market saturation concerns.
• Outlook for Fiscal 2026:
  • Net sales expected to reach \$5.20-\$5.30 billion, with 150 net new stores and 3%-5% comparable sales growth.
  • Adjusted net income projected at \$431-\$459 million.
  • Adjusted diluted EPS expected at \$7.74-\$8.25.
  • Gross capital expenditures forecasted between \$230-\$250 million.
  • Q1 FY2026 guidance: Net sales \$1.18-\$1.20 billion, comparable sales growth of 14%-16%, adjusted diluted EPS \$1.57-\$1.69.
• Risk Factors: The company outlined numerous risks that could impact future performance, including:
  • Global supply chain disruptions and shipping constraints.
  • Tariff impacts and reliance on imported merchandise.
  • Cybersecurity threats and challenges managing AI adoption.
  • Inflation, commodity prices, and potential recession risks.
  • Competition from other retailers, both physical and online.
  • Seasonality, real estate risks, and executive talent retention.
• Non-GAAP Measures: Adjusted results exclude certain nonrecurring and non-cash items (e.g., retention awards, cost-optimization initiatives, lease acquisition costs, inventory write-offs, litigation, and asset disposals).

Operational Details and Management Commentary

CEO Winnie Park described FY2025 as a “transformational year” with Five Below firmly positioned as “THE destination for the Kid and the Kid in all of us.” She highlighted exceptional execution of customer-centric strategies and the strengthening of brand agility. The focus for FY2026 is on trend-right merchandise, exceptional value, deeper customer connectivity, and enhanced shopping experiences. Management believes the company is well positioned for sustainable growth, margin expansion, and long-term shareholder value.

Balance Sheet and Cash Flow Highlights

• Cash and short-term investment securities at year-end totalled \$932.2 million (up from \$528.8 million).
• Total assets: \$4.94 billion (up from \$4.34 billion).
• Total liabilities: \$2.74 billion (up from \$2.53 billion).
• Shareholders’ equity: \$2.19 billion (up from \$1.81 billion).
• Net cash provided by operating activities: \$586.4 million (up from \$430.6 million).
• Net cash used in investing activities: \$186.2 million.
• Net cash used in financing activities: \$8.3 million.

GAAP to Non-GAAP Reconciliation

The report provides detailed reconciliation for gross profit, operating income, net income, and diluted EPS, highlighting adjustments for retention awards related to CEO transition, cost-optimization, lease acquisition, inventory write-offs, stock compensation benefits, litigation, and asset disposals. These are critical for investors to accurately assess underlying performance.

Forward-Looking Statements and Risks

Five Below cautions investors regarding forward-looking statements, noting that actual results may differ materially due to factors such as supply chain disruptions, tariffs, inflation, consumer preferences, competition, and risks associated with new technologies and cybersecurity. Investors should consult the company’s SEC filings for a comprehensive risk assessment.

Company Profile

Five Below is a leading growth retailer, offering trend-right, extreme value products primarily priced between \$1 and \$5, with some items above \$5. As of January 31, 2026, the company operated over 1,900 stores in 46 states.

Investor Contact

For further information, investors can contact Christiane Pelz, Vice President, Investor Relations, at [email protected].

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should perform their own research and consult their financial advisors before making any investment decisions. Forward-looking statements are subject to change, and actual results may differ materially due to various risk factors. Five Below, Inc. undertakes no obligation to publicly update any forward-looking statements.

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