Five Below (NASDAQ:FIVE) Releases Earnings Results, Beats Expectations By $0.45 EPS

Five Below (NASDAQ:FIVE) released its earnings results on Wednesday. The specialty retailer reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.77 by $0.45, FiscalAI reports. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.23 billion. Five Below had a net margin of 7.53% and a return on equity of 18.70%. The company’s revenue was up 32.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.86 EPS. Five Below updated its FY 2026 guidance to 8.650-9.050 EPS and its Q2 2026 guidance to 1.170-1.290 EPS.

Here are the key takeaways from Five Below’s conference call:

• Q1 results beat expectations, with net sales up nearly 33% to $1.3 billion, comparable sales up about 23%, and adjusted EPS rising to $2.22 from $0.86 a year ago.
• Traffic was the main driver of comp growth, with transactions up 19% and broad-based strength across all income cohorts, stores, and most departments.
• The company said its new marketing and merchandise approach is gaining traction, especially through social-first campaigns, trend amplification, and in-store activations like Squishy Dumplings and Pokémon events.
• Management raised full-year guidance, but remained cautious on the back half due to a tougher macro backdrop, cycling strong prior-year comps, and higher consumer pressure from inflation and fuel costs.
• Margins improved sharply, helped by fixed-cost leverage and better gross profit, while the balance sheet stayed strong with about $1.1 billion in cash and investments and management reiterated growth-focused capital allocation.

Five Below Stock Performance

Shares of FIVE stock opened at $222.89 on Thursday. Five Below has a one year low of $119.06 and a one year high of $251.63. The company’s 50-day moving average is $225.65 and its 200 day moving average is $205.05. The company has a market capitalization of $12.32 billion, a price-to-earnings ratio of 34.50, a price-to-earnings-growth ratio of 1.63 and a beta of 0.97.

Key Headlines Impacting Five Below

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Five Below posted better-than-expected Q1 fiscal 2026 results, with EPS of $2.22 topping estimates and revenue rising 32.5% year over year to $1.29 billion. Article Title
• Positive Sentiment: The company also raised full-year 2026 guidance, lifting its sales and EPS outlook well above Wall Street expectations, which signals management confidence in continued demand and margin strength. Article Title
• Positive Sentiment: Comparable sales jumped 22.7% and the company opened 49 net new stores, showing that both same-store traffic and expansion remain strong growth drivers. Article Title
• Neutral Sentiment: The earnings call transcript and preview suggest investors are monitoring whether Five Below can sustain this momentum amid tariffs, cost pressures, and ongoing expansion plans. Article Title
• Negative Sentiment: Despite the earnings beat, the stock fell in extended trading, indicating that some investors may have been expecting even stronger results or are worried about whether the upgraded guidance is enough to justify the valuation. Article Title

Wall Street Analysts Forecast Growth

FIVE has been the topic of a number of recent research reports. JPMorgan Chase & Co. upped their target price on shares of Five Below from $296.00 to $306.00 and gave the stock an “overweight” rating in a research report on Monday, May 18th. Wells Fargo & Company upped their target price on shares of Five Below from $220.00 to $260.00 and gave the stock an “overweight” rating in a research report on Thursday, March 19th. Citigroup upped their target price on shares of Five Below from $200.00 to $235.00 and gave the stock a “neutral” rating in a research report on Thursday, March 19th. Mizuho upped their target price on shares of Five Below from $185.00 to $205.00 and gave the stock a “neutral” rating in a research report on Tuesday, March 17th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $242.00 target price on shares of Five Below in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Five Below currently has an average rating of “Moderate Buy” and a consensus price target of $243.55.

Insider Activity

In other Five Below news, COO Kenneth R. Bull sold 10,000 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $234.14, for a total transaction of $2,341,400.00. Following the transaction, the chief operating officer owned 92,531 shares in the company, valued at approximately $21,665,208.34. This represents a 9.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ronald Sargent sold 10,000 shares of the company’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $231.28, for a total transaction of $2,312,800.00. Following the transaction, the director owned 83,674 shares in the company, valued at $19,352,122.72. This represents a 10.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Five Below

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Advisory Services Network LLC bought a new position in Five Below during the 3rd quarter valued at about $32,000. iSAM Funds UK Ltd bought a new position in Five Below during the 3rd quarter valued at about $40,000. NewEdge Advisors LLC lifted its stake in Five Below by 143.0% during the 1st quarter. NewEdge Advisors LLC now owns 1,096 shares of the specialty retailer’s stock valued at $82,000 after acquiring an additional 645 shares during the period. Steward Partners Investment Advisory LLC lifted its stake in shares of Five Below by 314.2% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 439 shares of the specialty retailer’s stock worth $83,000 after purchasing an additional 333 shares during the period. Finally, GW&K Investment Management LLC lifted its stake in shares of Five Below by 69.0% in the 4th quarter. GW&K Investment Management LLC now owns 475 shares of the specialty retailer’s stock worth $90,000 after purchasing an additional 194 shares during the period.

About Five Below

Five Below, Inc (NASDAQ:FIVE) is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.