Five Below (FIVE) Q2 2026 Financial Results Summary
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Five Below, Inc. (FIVE) Q2 2026: Impressive Growth Across the Board — Strongly Positive
Five Below, Inc. (NASDAQ: FIVE) reported a remarkable second quarter for fiscal 2026, showcasing significant growth in both net sales and profitability. The company achieved net sales of $1.26 billion, representing an increase of $235 million or +22.9% compared to $1.03 billion in the same quarter of fiscal 2025. This performance is a clear indication of the company's robust operational strategy and market positioning.
Key Financial Metrics:
- Net Sales: $1.26 billion, up $235 million or +22.9% YoY from $1.03 billion.
- Comparable Sales: Increased by 14.1%.
- Operating Income: $275.4 million, compared to $52.4 million in Q2 2025.
- Net Income: $221.4 million, up from $42.8 million in Q2 2025.
- GAAP Diluted EPS: $3.99, compared to $0.77 in Q2 2025.
- Adjusted Diluted EPS: $1.68, compared to $0.81 in Q2 2025.
- Store Count: 2,022 stores, with 52 net new stores opened during the quarter.
This quarter's results are undoubtedly positive for shareholders, reflecting a strong execution of Five Below's growth strategy. The substantial increase in both net sales and net income indicates that the company is effectively capturing market share and enhancing its profitability. The increase in comparable sales by 14.1% further underscores the strength of the brand and its appeal to consumers.
Shareholder Returns and Guidance:
In addition to the impressive financial results, Five Below announced a new share repurchase program authorizing the repurchase of up to $600 million of its common stock. This program replaces the previous authorization and demonstrates the company's commitment to returning value to shareholders.
Furthermore, Five Below raised its full-year outlook, projecting:
- Net Sales: $5.63 billion to $5.71 billion, up from the prior outlook of $5.40 billion to $5.48 billion.
- Net Income: $672 million to $698 million, compared to the previous estimate of $480 million to $502 million.
- Adjusted Net Income: $546 million to $572 million, up from $482 million to $504 million.
- Diluted EPS: $12.10 to $12.58, increased from $8.62 to $9.02.
Analyst Opinion:
This quarter's results are a testament to Five Below's effective strategy and operational excellence. The company's ability to grow both its top and bottom lines significantly, while also expanding its store footprint, positions it well for continued success. The increase in guidance reflects management's confidence in sustaining this momentum, which is encouraging for investors.
Forward-Looking Catalysts:
Investors should keep an eye on the upcoming third quarter, where Five Below expects net sales between $1.21 billion and $1.23 billion, with comparable sales growth projected at +8% to +10%. The company also plans to open approximately 40 new stores, which will further enhance its market presence. As the holiday season approaches, the execution of its customer-centric strategy will be crucial in maintaining sales momentum.
In conclusion, Five Below's Q2 2026 results not only exceeded expectations but also set a strong foundation for future growth. The combination of robust sales growth, increased profitability, and a proactive approach to shareholder returns makes this a compelling time for investors to engage with Five Below.
Note: The following tables contain amounts in thousands.
| Thirteen Weeks Ended | August 1, 2026 | August 2, 2025 | Twenty-Six Weeks Ended | August 1, 2026 | August 2, 2025 |
|---|---|---|---|---|---|
| Net sales | $1,261,000 | $1,026,000 | Net sales | $2,547,000 | $1,997,000 |
| Cost of goods sold (excluding depreciation and amortization) | 649,070 | 684,478 | Cost of goods sold (excluding depreciation and amortization) | 1,456,000 | 1,331,000 |
| Selling, general and administrative expenses | 285,870 | 242,314 | Selling, general and administrative expenses | 559,146 | 468,816 |
| Depreciation and amortization | 51,203 | 47,690 | Depreciation and amortization | 102,326 | 94,254 |
| Operating income | 275,350 | 52,365 | Operating income | 429,593 | 103,212 |
| Interest income and other income, net | 15,418 | 5,540 | Interest income and other income, net | 23,673 | 11,187 |
| Income before income taxes | 290,768 | 57,905 | Income before income taxes | 453,266 | 114,399 |
| Income tax expense | 69,373 | 15,143 | Income tax expense | 108,815 | 30,489 |
| Net income | $221,395 | $42,762 | Net income | $344,451 | $83,910 |
| Basic income per common share | $4.02 | $0.78 | Basic income per common share | $6.24 | $1.52 |
| Diluted income per common share | $3.99 | $0.77 | Diluted income per common share | $6.20 | $1.52 |
| Weighted average shares outstanding | 55,130,000 | 55,072,000 | Weighted average shares outstanding | 55,196,000 | 55,059,000 |
| Diluted shares | 55,474,000 | 55,389,000 | Diluted shares | 55,540,000 | 55,289,000 |
| January 31, 2026 | August 2, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $561,083 | $562,746 |
| Short-term investment securities | 626,821 | 107,418 |
| Inventories | 941,162 | 799,602 |
| Prepaid income taxes and tax receivable | 5,574 | 4,657 |
| Prepaid expenses and other current assets | 100,712 | 110,495 |
| Total current assets | 2,235,352 | 1,584,918 |
| Property and equipment, net | 1,250,477 | 1,253,808 |
| Operating lease assets | 1,766,069 | 1,746,255 |
| Other assets | 25,928 | 21,557 |
| Total assets | $5,277,826 | $4,606,538 |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities: | ||
| Line of credit | — | — |
| Accounts payable | 436,734 | 371,801 |
| Income taxes payable | 1,388 | — |
| Accrued salaries and wages | 44,341 | 36,532 |
| Other accrued expenses | 215,896 | 204,926 |
| Operating lease liabilities | 307,637 | 311,365 |
| Total current liabilities | 1,005,996 | 924,624 |
| Other long-term liabilities | 11,318 | 10,288 |
| Long-term operating lease liabilities | 1,731,001 | 1,707,261 |
| Deferred income taxes | 53,388 | 57,118 |
| Total liabilities | 2,801,703 | 2,699,291 |
| Shareholders’ equity: | ||
| Common stock | 550 | 550 |
| Additional paid-in capital | 117,174 | 167,480 |
| Retained earnings | 2,358,399 | 1,739,217 |
| Total shareholders’ equity | 2,476,123 | 1,907,247 |
| Total liabilities and shareholders’ equity | $5,277,826 | $4,606,538 |
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