Five Below, Inc. (FIVE) Q1 2026: Exceptional Growth — Strongly Positive

Five Below, Inc. (NASDAQ: FIVE) reported impressive financial results for the first quarter of fiscal 2026, showcasing significant growth compared to the previous year. The company achieved net sales of $1.3 billion, marking an increase of $315.1 million or 32.5% from $970.5 million in Q1 fiscal 2025. Additionally, comparable sales surged by 22.7%, indicating robust consumer demand and effective merchandising strategies.

This quarter's performance is undoubtedly a positive outcome for shareholders. The substantial revenue growth, coupled with a remarkable increase in net income, reflects the company's successful execution of its customer-centric strategy. The net income for the quarter reached $123.1 million, a significant rise of $81.9 million or 199.5% from $41.1 million in the same quarter last year. Furthermore, diluted earnings per share (EPS) rose to $2.21, compared to $0.75 in Q1 fiscal 2025, representing a 194.7% increase.

Key Financial Metrics:

• Net Sales: $1,285.6 million (up $315.1 million or +32.5% YoY)
• Comparable Sales: +22.7%
• Net Income: $123.1 million (up $81.9 million or +199.5% YoY)
• Diluted EPS: $2.21 (up $1.46 or +194.7% YoY)
• Operating Income: $154.2 million (up $103.4 million or +203.1% YoY)

The company also opened 49 net new stores, bringing the total to 1,970 stores across 46 states, which is a 7.9% increase in store count from the end of Q1 fiscal 2025. This expansion strategy is likely to contribute to continued revenue growth in the coming quarters.

Dividend and Share Buyback:

While the earnings release did not mention any dividend or share buyback programs, the strong financial performance may lead to future considerations for returning capital to shareholders.

Guidance Update:

Looking ahead, Five Below has raised its full-year 2026 sales and EPS outlook. For Q2 fiscal 2026, the company expects net sales in the range of $1.18 billion to $1.20 billion, with comparable sales anticipated to increase by approximately 7% to 9%. Net income is projected to be between $64 million and $71 million, and diluted EPS is expected to range from $1.15 to $1.27.

For the full year of fiscal 2026, Five Below anticipates net sales between $5.40 billion and $5.48 billion, with net income expected in the range of $480 million to $502 million. Diluted EPS for the full year is projected to be between $8.62 and $9.02.

Forward Catalyst:

Investors should closely monitor the company's performance in the upcoming quarters, particularly the execution of its expansion strategy and the impact of macroeconomic factors on consumer spending. The anticipated opening of approximately 150 net new stores throughout fiscal 2026 and the ongoing focus on enhancing the customer experience will be critical to sustaining growth momentum. Additionally, any updates regarding tariff impacts and supply chain management will be essential for assessing the company's operational resilience.

In summary, Five Below's Q1 2026 results reflect a strong performance that not only exceeded expectations but also positions the company favorably for future growth. The combination of robust sales growth, significant increases in profitability, and an optimistic outlook makes this quarter a noteworthy success for shareholders.

Note: The following tables present amounts in thousands.

FIVE BELOW, INC. Consolidated Statements of Operations	Thirteen Weeks Ended May 2, 2026	Thirteen Weeks Ended May 3, 2025
Net sales	1,285,602	970,527
Cost of goods sold (exclusive of items shown separately below)	806,960	646,614
Selling, general and administrative expenses	273,276	226,502
Depreciation and amortization	51,123	46,564
Operating income	154,243	50,847
Interest income and other income, net	8,255	5,647
Income before income taxes	162,498	56,494
Income tax expense	39,442	15,346
Net income	123,056	41,148
Basic income per common share	2.23	0.75
Diluted income per common share	2.21	0.75
Weighted average shares outstanding: Basic shares	55,262,924	55,045,966
Weighted average shares outstanding: Diluted shares	55,607,222	55,189,813

FIVE BELOW, INC. Consolidated Balance Sheets	May 2, 2026	January 31, 2026	May 3, 2025
Assets: Current assets: Cash and cash equivalents	638,892	723,699	427,462
Short-term investment securities	474,370	208,508	196,529
Inventories	813,300	846,609	702,053
Prepaid income taxes and tax receivable	5,210	5,210	4,649
Prepaid expenses and other current assets	130,176	132,697	142,429
Total current assets	2,061,948	1,916,723	1,473,122
Property and equipment, net	1,242,449	1,234,331	1,260,795
Operating lease assets	1,725,210	1,765,704	1,696,917
Other assets	25,396	20,261	21,968
Total	5,055,003	4,937,019	4,452,802
Liabilities and Shareholders’ Equity: Current liabilities: Line of credit	—	—	—
Accounts payable	351,544	368,381	276,505
Income taxes payable	95,234	56,644	72,365
Accrued salaries and wages	46,704	67,505	31,179
Other accrued expenses	188,684	160,328	176,750
Operating lease liabilities	300,545	301,148	304,950
Total current liabilities	982,711	954,006	861,749
Other long-term liabilities	10,890	8,667	8,049
Long-term operating lease liabilities	1,698,164	1,731,041	1,670,168
Deferred income taxes	50,767	50,015	54,774
Total liabilities	2,742,532	2,743,729	2,594,740
Shareholders’ equity: Common stock	552	551	549
Additional paid-in capital	174,915	178,791	161,058
Retained earnings	2,137,004	2,013,948	1,696,455
Total shareholders’ equity	2,312,471	2,193,290	1,858,062
Total	5,055,003	4,937,019	4,452,802

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