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Five Below turnaround shows momentum as earnings beat and guidance rises
Five Below reported first-quarter fiscal 2026 net sales of $1.29 billion, up 32.5% year over year, and raised full-year guidance to $5.40 billion to $5.48 billion.
Five Below’s turnaround is gaining traction, with the specialty retailer posting results that beat expectations and lifting full-year outlook, according to MarketBeat Ratings. The company reported first-quarter fiscal 2026 net sales of $1.29 billion, up 32.5% year over year, supported by a 22.7% increase in comparable sales versus analysts’ estimate of $1.23 billion.
Profitability improved alongside the top line, with gross margin rising to 37.2% from 33.4% a year earlier. Net income totaled $123.1 million, compared with $41.1 million in the prior-year period, while adjusted diluted EPS came in at $2.22 versus a Wall Street estimate of $1.77.
Operating income also jumped to $154.2 million from $50.8 million a year earlier, reflecting an improved earnings mix as the company moved away from the low-margin environment of 2023 and 2024. For fiscal 2025, Five Below said net sales increased 22.9% to $4.76 billion, comparable sales rose 12.8%, and diluted EPS climbed 40.7% to $6.47.
Management raised full-year fiscal 2026 guidance for both sales and earnings, setting net sales at $5.40 billion to $5.48 billion and adjusted diluted EPS at $8.65 to $9.05. The company also forecast net income of $480 million to $502 million, and plans to open 150 new stores in the year with comparable sales growth targeted at 6% to 8%.