PHILADELPHIA, PA — Five Below Inc. (Nasdaq: FIVE) raised its fiscal 2026 sales and earnings outlook after second-quarter revenue climbed 22.9% to $1.26 billion and comparable sales rose 14.1%, extending the discount retailer’s growth as it expands its store base.
The Philadelphia-based company now expects full-year net sales of $5.63 billion to $5.71 billion, up from its previous forecast of $5.40 billion to $5.48 billion. It raised its comparable-sales forecast to growth of 10% to 12% from 6% to 8%.
Five Below also lifted its adjusted diluted earnings forecast to $9.83 to $10.31 a share from $8.65 to $9.05. GAAP diluted earnings are projected at $12.10 to $12.58 a share, compared with the prior range of $8.62 to $9.02.
The outlook incorporates tariff rates currently in place but excludes potential future tariff refunds and share repurchases, according to the company.
For the quarter ended Aug. 1, Five Below reported net income of $221.4 million, or $3.99 a diluted share, compared with $42.8 million, or 77 cents a share, a year earlier. The results included the benefit of tariff refunds.
Excluding tariff refunds and other adjustments, second-quarter net income was $93.4 million, or $1.68 a diluted share, more than double adjusted net income of $44.8 million, or 81 cents a share, a year earlier. Adjusted operating income increased to $113.2 million from $55.1 million.
Five Below recorded $163.6 million of International Emergency Economic Powers Act tariff refunds during the quarter. On an after-tax basis, the refunds and related interest contributed about $129.1 million to reported net income, according to the company’s reconciliation of GAAP and adjusted results.
Chief Executive Officer Winnie Park pointed to the combination of store expansion and comparable-sales growth, saying the company had generated double-digit comparable-sales increases for five consecutive quarters.
“The balance between new store growth and double-digit comparable sales growth for the past five quarters is a testament to our operating flywheel gaining momentum,” Park stated.
Five Below opened 52 net new stores during the quarter, bringing its total to 2,022 stores in 46 states at quarter-end, an 8.8% increase from a year earlier.
For the first half of fiscal 2026, sales increased 27.5% to $2.55 billion and comparable sales rose 18.3%. Adjusted net income increased to $217.1 million from $92.3 million, while adjusted diluted earnings rose to $3.91 from $1.67 a share.
The retailer expects third-quarter sales of $1.21 billion to $1.23 billion, comparable-sales growth of 8% to 10% and diluted earnings of $1.01 to $1.13 a share. It plans to open about 40 net new stores during the quarter.
For the full year, Five Below continues to expect about 150 net new stores. It raised its gross capital expenditure forecast to $250 million to $260 million from $230 million to $250 million.
Separately, Five Below’s board authorized a new $600 million share repurchase program on Aug. 29, replacing the remaining capacity under its previous authorization. The new program has no fixed expiration date.
Five Below repurchased about 311,000 shares for approximately $60 million during the second quarter.
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