Strong Sales Drive Growth
Five Below Raises Annual Guidance After Reporting Strong Second Quarter Results
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Key Points
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In Q2, Five Below reported net income of $221.4 million on about $1.26 billion in net sales, expanding to 2,022 stores across 46 states after adding 52 net new locations in the quarter (ended Aug. 1).
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Tariff refunds and related interest contributed about $2.33 per share to GAAP earnings in Q2, helping GAAP EPS reach $3.99 while the company’s adjusted EPS was $1.68.
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Five Below shares rose roughly 6.2% in after-hours trading after the Q2 results were released.
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The company added two executives in Q2: Rodney Lastinger as Chief Retail Officer and Christos Yatrakis as Chief Legal Officer.
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In its Q1 2026 results, Five Below posted adjusted EPS of $2.22 on revenue of $1.29 billion, opened 49 net new stores (ending with 1,970 locations), and raised its full-year adjusted EPS guidance to $8.65–$9.05.
Five Below posted robust second-quarter results that beat expectations, with net sales of $1.26 billion and net income of $221.4 million Kalkinemedia. The specialty retailer grew sales 22.9% year-over-year and comparable-store sales 14.1%, prompting management to raise full-year guidance to $5.63 billion to $5.71 billion Kalkinemedia. Shares rose roughly 6.2% in after-hours trading as investors embraced the strong momentum and aggressive expansion plans.
The results reflect Five Below's strategy of trend-driven merchandising and enhanced digital marketing. The company ended the quarter with 2,022 stores across 46 states after opening 52 net new locations Kalkinemedia. Management also raised Q3 2026 EPS guidance to $1.01–$1.13, well above the consensus estimate of $0.86 Watchlist News.
Fifth Straight Quarter of Double-Digit Growth
Five Below's Q2 comparable-store growth of 14.1% marks its fifth consecutive quarter of double-digit comp expansion Retail TouchPoints. Higher traffic and a strong product mix drove the results, with two-year stacked comp growth reaching roughly 26.5%. CEO Winnie Park credited the company's 'rolling thunder' of newness — a steady stream of trending products — for fueling the sales surge Retail TouchPoints.
Tariff Refunds Boost Reported Earnings Significantly
Five Below reported GAAP earnings per share of $3.99 for Q2, but tariff refunds and related interest contributed $2.33 per share of that total Kalkinemedia. Adjusted EPS, which excludes these one-time benefits, came in at $1.68 — beating the consensus estimate of $1.61 Defense World. The gap highlights how much of the quarter's profit boost came from tariff relief rather than core operational improvements.
Aggressive Store Expansion and New Leadership Push Growth
Five Below plans to open about 150 net new stores this year and intends to expand into Puerto Rico in 2027 Kalkinemedia. The company strengthened its leadership team by hiring Rodney Lastinger as Chief Retail Officer and Christos Yatrakis as Chief Legal Officer in Q2. These moves signal management's confidence in sustaining growth through both geographic expansion and operational refinement as it competes in a challenging retail environment.
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