Five Below, Inc. Announces Second Quarter Fiscal 2025 Financial Results

August 27, 2025 16:01 ET | Source: Five Below, Inc. Q2 Net Sales Increase of 23.7% to $1.0 Billion; Comparable Sales Increase of 12.4% Q2 GAAP Diluted EPS of $0.77, Q2 Adjusted Diluted EPS of $0.81 Increases Full Year 2025 Sales and EPS Guidance PHILADELPHIA, PA, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the second quarter and year to date period ended August 2, 2025. For the second quarter ended August 2, 2025: Net sales increased by 23.7% to $1,026.8 million from $830.1 million in the second quarter of fiscal 2024; comparable sales increased by 12.4%.The Company opened 32 net new stores and ended the quarter with 1,858 stores in 44 states. This represents an increase in stores of 11.5% from the end of the second quarter of fiscal 2024.Operating income was $52.4 million compared to $41.5 million in the second quarter of fiscal 2024. Adjusted operating income(1) was $55.1 million compared to $37.0 million in the second quarter of fiscal 2024.The effective tax rate was 26.2% compared to 25.9% in the second quarter of fiscal 2024.Net income was $42.8 million compared to $33.0 million in the second quarter of fiscal 2024. Adjusted net income(1) was $44.8 million compared to $29.7 million in the second quarter of fiscal 2024.Diluted income per common share was $0.77 compared to $0.60 in the second quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.81 compared to $0.54 in the second quarter of fiscal 2024.(1) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.” Winnie Park, CEO of Five Below, said, “We are excited to deliver second quarter results that exceeded our sales and earnings expectations. 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. We have been maniacally focused on executing with excellence, specifically curating Wow! newness in our assortment, simplifying our pricing while maintaining extreme value, improving in-stock levels and optimizing product flow. Importantly, our results demonstrate that our customers are recognizing us as the destination for fun at great value for the KID and the KID in all of us.” "Looking ahead, we remain laser-focused on delivering the magic of Five Below as we transition to Halloween and then the all-important holiday season. We will continue to surprise and delight our customers with trend-right products, exceptional value, and an amazing experience,” Ms. Park added. For the year to date period ended August 2, 2025: Net sales increased by 21.6% to $1,997.4 million from $1,641.9 million in the year to date period of fiscal 2024; comparable sales increased by 9.8%.The Company opened 87 net new stores compared to 123 new stores in the year to date period of fiscal 2024.Operating income was $103.2 million compared to $77.7 million in the year to date period of fiscal 2024. Adjusted operating income(1) was $114.7 million compared to $75.2 million in the year to date period of fiscal 2024.The effective tax rate was 26.7% compared to 24.8% in the year to date period of fiscal 2024.Net income was $83.9 million compared to $64.5 million in the year to date period of fiscal 2024. Adjusted net income(1) was $92.3 million compared to $62.6 million in the year to date period of fiscal 2024.Diluted income per common share was $1.52 compared to $1.17 in the year to date period of fiscal 2024. Adjusted diluted income per common share(1) was $1.67 compared to $1.13 in the year to date period of fiscal 2024.(1) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.” Third Quarter and Fiscal 2025 Outlook:The Company expects the following results for the third quarter and full year of fiscal 2025. This guidance includes the expected impact of tariffs currently in place. For the third quarter of Fiscal 2025: Net sales are expected to be in the range of $950 million to $970 million based on opening approximately 50 net new stores and assumes an approximate 5% to 7% increase in comparable sales.Net income is expected to be in the range of $5 million to $12 million. Adjusted net income(2) is expected to be in the range of $7 million to $13 million.Diluted income per common share is expected to be in the range of $0.09 to $0.21 on approximately 55.6 million diluted weighted average shares outstanding. Adjusted diluted income per common share(2) is expected to be in the range of $0.12 to $0.24.This outlook does not include the impact of share repurchases, if any.(2) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards and costs incurred with the strategic acquisition of certain leases, net of income tax impacts. For the full year of Fiscal 2025: Net sales are expected to be in the range of $4.44 billion to $4.52 billion based on opening approximately 150 net new stores and assumes an approximate 5% to 7% increase in comparable sales.Net income is expected to be in the range of $253 million to $275 million. Adjusted net income(3) is expected to be in the range of $264 million to $286 million.Diluted income per common share is expected to be in the range of $4.56 to $4.96 on approximately 55.4 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $4.76 to $5.16.Gross capital expenditures are expected to be approximately $210 million.This outlook does not include the impact of share repurchases, if any.(3) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, costs associated with cost-optimization initiatives, execution of the inventory write-off, and costs incurred with the strategic acquisition of certain leases, net of income tax impacts. Conference Call Information:A conference call to discuss the financial results for the second quarter of fiscal 2025 is scheduled for today, August 27, 2025, at 4:30 p.m. Eastern Time. A live audio webcast of the conference call will be available online at investor.fivebelow.com, where a replay will be available shortly after the conclusion of the call. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 approximately 10 minutes prior to the start of the call. Non-GAAP Information:This press release includes gross profit, adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share, each is a non-GAAP financial measure. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures within this filing. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company's business and facilitate a meaningful evaluation of its quarterly and fiscal year 2025 diluted income per common share and actual results on a comparable basis with its quarterly and fiscal year 2024 results. In evaluating these non-GAAP financial measures, investors should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this filing. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Forward-Looking Statements:This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect management's current views and estimates regarding the Company's industry, business strategy, goals, expectations and guidance concerning its market position, operations, margins, profitability, capital expenditures, liquidity and capital resources, store count potential and other financial and operating information. Investors can identify these statements by the fact that they use words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future" and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to risks related to disruption to the global supply chain, risks related to the Company's strategy and expansion plans, risks related to our ability to attract, retain, and integrate qualified executive talent, risks related to disruptions in our information technology systems and our ability to maintain and upgrade those systems, risks related to the inability to successfully implement our online retail operations, risks related to cyberattacks or other cyber incidents, risks related to increased usage of machine learning and other types of artificial intelligence in our business, and challenges with properly managing its use; risks related to our ability to select, obtain, distribute and market merchandise profitably, risks related to our reliance on merchandise manufactured outside of the United States, the availability of suitable new store locations and the dependence on the volume of traffic to our stores, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, including wage rates, risks related to inflation and increasing commodity prices, risks related to potential recessions and systematic failure of the banking system in the United States or globally, risks related to extreme weather, pandemic outbreaks, global political events, war, terrorism or civil unrest (including any resulting store closures, damage, or loss of inventory), risks related to leasing, owning or building distribution centers, risks related to our ability to successfully manage inventory balance and inventory shrinkage, quality or safety concerns about the Company's merchandise, increased competition from other retailers including online retailers, risks related to the seasonality of our business, risks related to our ability to protect our brand name and other intellectual property, risks related to customers' payment methods, risks related to domestic and foreign trade restrictions including duties and tariffs affecting our domestic and foreign suppliers and increasing our costs, including, among others, the direct and indirect impact of current and potential tariffs imposed, threatened and proposed by the United States on foreign imports, risks associated with the restrictions imposed by our indebtedness on our current and future operations, the impact of changes in tax legislation and accounting standards and risks associated with leasing substantial amounts of space. For further details and a discussion of these risks and uncertainties, see the Company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company's assumptions prove incorrect, the Company's actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. About Five Below:Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,850 stores in 44 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook. Investor Contact:Five Below, Inc.Christiane PelzVice President, Investor Relations215-207-2658InvestorRelations@fivebelow.com FIVE BELOW, INC.Consolidated Balance Sheets(Unaudited)(in thousands) August 2, 2025 February 1, 2025 August 3, 2024Assets Current assets: Cash and cash equivalents$562,746 $331,718 $209,039Short-term investment securities 107,418 197,073 118,680Inventories 799,602 659,500 639,881Prepaid income taxes and tax receivable 4,657 4,649 14,140Prepaid expenses and other current assets 110,495 158,427 136,899Total current assets 1,584,918 1,351,367 1,118,639Property and equipment, net 1,253,808 1,261,728 1,246,880Operating lease assets 1,746,255 1,706,542 1,627,483Other assets 21,557 19,937 20,142 $4,606,538 $4,339,574 $4,013,144 Liabilities and Shareholders’ Equity Current liabilities: Line of credit$— $— $—Accounts payable 371,801 260,343 255,965Income taxes payable — 51,998 —Accrued salaries and wages 36,532 19,743 12,574Other accrued expenses 204,926 149,495 164,226Operating lease liabilities 311,365 274,863 252,440Total current liabilities 924,624 756,442 685,205Other long-term liabilities 10,288 8,210 8,662Long-term operating lease liabilities 1,707,261 1,706,704 1,642,055Deferred income taxes 57,118 59,891 69,481Total liabilities 2,699,291 2,531,247 2,405,403Shareholders’ equity: Common stock 550 549 549Additional paid-in capital 167,480 152,471 141,029Retained earnings 1,739,217 1,655,307 1,466,163Total shareholders’ equity 1,907,247 1,808,327 1,607,741 $4,606,538 $4,339,574 $4,013,144 FIVE BELOW, INC.Consolidated Statements of Operations(Unaudited)(in thousands, except share and per share data) Thirteen Weeks Ended Twenty-Six Weeks Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024Net sales$1,026,847 $830,069 $1,997,374 $1,641,932Cost of goods sold (exclusive of items shown separately below) 684,478 558,283 1,331,092 1,106,626Selling, general and administrative expenses 242,314 188,809 468,816 378,995Depreciation and amortization 47,690 41,468 94,254 78,652Operating income 52,365 41,509 103,212 77,659Interest income and other income, net 5,540 3,054 11,187 8,044Income before income taxes 57,905 44,563 114,399 85,703Income tax expense 15,143 11,563 30,489 21,236Net income$42,762 $33,000 $83,910 $64,467Basic income per common share$0.78 $0.60 $1.52 $1.17Diluted income per common share$0.77 $0.60 $1.52 $1.17Weighted average shares outstanding: Basic shares 55,072,140 55,027,663 55,059,126 55,097,840Diluted shares 55,389,479 55,042,588 55,289,719 55,148,893 FIVE BELOW, INC.Consolidated Statements of Cash Flows(Unaudited)(in thousands) Twenty-Six Weeks Ended August 2, 2025 August 3, 2024Operating activities: Net income$83,910 $64,467 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 94,254 78,652 Share-based compensation expense 18,419 4,728 Deferred income tax (benefit) expense (2,773) 2,738 Other non-cash expenses 754 196 Changes in operating assets and liabilities: Inventories (140,102) (55,254)Prepaid income taxes and tax receivable (8) (9,306)Prepaid expenses and other assets 46,240 13,856 Accounts payable 110,636 887 Income taxes payable (51,998) (41,772)Accrued salaries and wages 16,789 (17,454)Operating leases (2,654) 37,878 Other accrued expenses 52,191 18,078 Net cash provided by operating activities 225,658 97,694 Investing activities: Purchases of investment securities and other investments (95,648) (4,508)Sales, maturities, and redemptions of investment securities 185,303 173,958 Capital expenditures (80,928) (191,472)Net cash provided by (used in) investing activities 8,727 (22,022)Financing activities: Net proceeds from issuance of common stock 477 600 Repurchase and retirement of common stock — (40,226)Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units 1 1 Common shares withheld for taxes (3,835) (6,757)Net cash used in financing activities (3,357) (46,382)Net increase in cash and cash equivalents 231,028 29,290 Cash and cash equivalents at beginning of period 331,718 179,749 Cash and cash equivalents at end of period$562,746 $209,039 FIVE BELOW, INC.GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations(Unaudited)(in thousands, except share and per share data) Reconciliation of gross profit to adjusted gross profit Thirteen Weeks Ended Twenty-Six Weeks Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024Gross profit(4)$342,369 $271,786 $666,282 $535,306 Adjustments: Retention awards(5) 390 153 780 153 Cost-optimization initiatives(6) — — 4,100 — Non-recurring lease acquisition costs(7) 495 — 495 — Adjusted gross profit(8)$343,254 $271,939 $671,657 $535,459 Reconciliation of operating income, as reported, to adjusted operating income Thirteen Weeks Ended Twenty-Six Weeks Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024Operating income, as reported$52,365 $41,509 $103,212 $77,659 Adjustments: Retention awards(5) 2,259 1,647 5,196 1,647 Cost-optimization initiatives(6) — — 4,960 — Non-recurring lease acquisition costs(7) 495 — 495 — Non-recurring employment-related litigation — — — 1,976 Non-recurring stock compensation benefit — (6,116) — (6,116)Non-recurring inventory write-off — — 830 — Adjusted operating income(8)$55,119 $37,040 $114,694 $75,166 Reconciliation of net income, as reported, to adjusted net income Thirteen Weeks Ended Twenty-Six Weeks Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024Net income, as reported$42,762 $33,000 $83,910 $64,467 Adjustments: Retention awards, net of tax(5) 1,668 1,220 3,811 1,239 Cost-optimization initiatives, net of tax(6) — — 3,638 — Non-recurring lease acquisition costs, net of tax(7) 366 — 363 — Non-recurring employment-related litigation, net of tax — — — 1,486 Non-recurring stock compensation benefit, net of tax — (4,532) — (4,599)Non-recurring inventory write-off, net of tax — — 609 — Adjusted net income(8)$44,796 $29,688 $92,332 $62,592 Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share Thirteen Weeks Ended Twenty-Six Weeks Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024Diluted income per common share, as reported$0.77 $0.60 $1.52 $1.17 Adjustments: Retention awards per share(5) 0.03 0.02 0.07 0.02 Cost-optimization initiatives per share(6) — — 0.07 — Non-recurring lease acquisition costs per share(7) 0.01 — 0.01 — Non-recurring employment-related litigation per share — — — 0.03 Non-recurring stock compensation benefit per share — (0.08) — (0.08)Non-recurring inventory write-off per share — — 0.01 — Adjusted diluted income per common share(8)$0.81 $0.54 $1.67 $1.13 (4) Gross profit is equal to our net sales less our cost of goods sold.(5) Retention awards relate to the on-going expense recognition of equity granted to certain individuals in fiscal 2024 during the CEO transition that will be earned and have vestings through fiscal 2026.(6) Represents charges related to the cost-optimization of certain functions. (7) Represents non-recurring costs incurred with the strategic acquisition of certain leases.(8) Components may not add to total due to rounding.

Five Below, Inc. Announces Second Quarter Fiscal 2025 Financial Results

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