PHILADELPHIA, PA — Discount retailer Five Below, Inc. (NASDAQ: FIVE) posted stronger-than-expected second quarter earnings, buoyed by double-digit sales growth and robust consumer demand, as the company continues its nationwide expansion.
Q2 Performance Surpasses Expectations
For the quarter ended August 2, 2025, net sales rose 23.7% to $1.03 billion from $830.1 million a year earlier, while comparable sales increased 12.4%. Net income climbed to $42.8 million, up from $33 million in the same period of 2024. Adjusted net income came in at $44.8 million, versus $29.7 million last year.
Diluted earnings per share reached $0.77, compared to $0.60 in Q2 2024. On an adjusted basis, EPS was $0.81, well ahead of last year’s $0.54. Operating income also rose to $52.4 million from $41.5 million.
The company opened 32 net new stores during the quarter, ending with 1,858 locations across 44 states — an 11.5% increase year over year.
CEO: Focused Execution Driving Results
Chief Executive Officer Winnie Park said the company’s strategy is resonating with customers despite economic challenges. “These results demonstrate the effectiveness of our strategy and are a testament to the hard work, dedication and tight collaboration of our teams across the company, especially in an ever-changing tariff environment,” she said.
Park added that product curation, simplified pricing, improved inventory levels, and stronger product flow were key drivers of performance. Looking ahead, she said Five Below remains focused on maintaining momentum as it transitions into the Halloween and holiday seasons.
Year-to-Date Gains
For the first half of fiscal 2025, net sales rose 21.6% to $2 billion, with comparable sales up 9.8%. Net income for the period totaled $83.9 million, up from $64.5 million in 2024. Adjusted net income was $92.3 million, compared with $62.6 million last year.
The company opened 87 new stores year to date, compared with 123 in the same period of 2024.
Guidance for Q3 and Full Year
For the third quarter, Five Below expects sales between $950 million and $970 million, with comparable sales growth of 5% to 7%. Net income is projected to range from $5 million to $12 million. Adjusted EPS is expected between $0.12 and $0.24.
For fiscal 2025, the company forecasts full-year sales of $4.44 billion to $4.52 billion, with comparable sales growth of 5% to 7%. Net income is projected at $253 million to $275 million, or $4.56 to $4.96 per diluted share. On an adjusted basis, EPS is expected between $4.76 and $5.16.
Capital expenditures for the year are expected to be about $210 million, primarily to support store expansion and operational investments.
Expanding Footprint, Sustained Growth
With a growing store base and consistent same-store sales growth, Five Below continues to cement its position as a destination for value-conscious shoppers. The company’s results highlight the resilience of the discount retail model and its ability to capture discretionary spending even in a shifting economic environment.
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