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

Five Below (NASDAQ:FIVE) released its quarterly earnings data on Wednesday. The specialty retailer reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.77 by $0.45, FiscalAI reports. Five Below had a return on equity of 22.09% and a net margin of 8.67%.The business had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the business posted $0.86 earnings per share. Five Below’s quarterly revenue was up 32.5% on a year-over-year basis. 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

NASDAQ:FIVE opened at $192.17 on Friday. The company has a market cap of $10.63 billion, a price-to-earnings ratio of 24.26, a P/E/G ratio of 1.64 and a beta of 0.97. The stock’s fifty day moving average price is $224.87 and its two-hundred day moving average price is $205.37. Five Below has a 52-week low of $121.11 and a 52-week high of $251.63.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Bank of America lifted their price target on shares of Five Below from $260.00 to $305.00 and gave the company a “buy” rating in a report on Thursday, March 19th. Sanford C. Bernstein raised their price objective on shares of Five Below from $243.00 to $247.00 and gave the stock a “market perform” rating in a report on Thursday. UBS Group reiterated a “buy” rating and issued a $285.00 price objective on shares of Five Below in a research report on Thursday. Craig Hallum increased their target price on Five Below from $255.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Jefferies Financial Group restated a “hold” rating on shares of Five Below in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Five Below currently has a consensus rating of “Moderate Buy” and an average target price of $254.25.

Insider Activity

In other news, Director Ronald Sargent sold 10,000 shares of Five Below stock in a transaction that occurred on 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 completion of the sale, the director owned 83,674 shares in the company, valued at $19,352,122.72. The trade was a 10.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Kenneth R. Bull sold 10,000 shares of Five Below stock in a transaction on Friday, March 20th. The stock was sold at an average price of $234.14, for a total transaction of $2,341,400.00. Following the sale, the chief operating officer directly owned 92,531 shares of the company’s stock, valued at $21,665,208.34. This represents a 9.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.96% of the company’s stock.

Institutional Trading of Five Below

Hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its position in shares of Five Below by 33.6% in the 2nd quarter. NewEdge Advisors LLC now owns 1,464 shares of the specialty retailer’s stock valued at $192,000 after purchasing an additional 368 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in Five Below during the 4th quarter worth approximately $175,000. Kestra Advisory Services LLC acquired a new stake in Five Below during the 4th quarter worth approximately $173,000. UMB Bank n.a. lifted its stake in Five Below by 20.9% in the fourth quarter. UMB Bank n.a. now owns 717 shares of the specialty retailer’s stock valued at $135,000 after buying an additional 124 shares in the last quarter. Finally, Advisory Services Network LLC boosted its holdings in shares of Five Below by 219.0% in the fourth quarter. Advisory Services Network LLC now owns 670 shares of the specialty retailer’s stock valued at $126,000 after buying an additional 460 shares during the period.

Trending Headlines about Five Below

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

• Positive Sentiment: Five Below reported Q1 revenue of $1.29 billion and diluted EPS of $2.21, both well ahead of expectations, with comparable sales up 22.7% and operating income more than tripling year over year. Article Title
• Positive Sentiment: Management raised full-year fiscal 2026 guidance, calling for net sales of $5.40 billion to $5.48 billion and adjusted EPS of $8.65 to $9.05, signaling confidence in continued traffic and margin momentum. Article Title
• Positive Sentiment: Analysts remained constructive after the report, with multiple firms reiterating bullish ratings and several raising price targets, reinforcing that Wall Street still sees upside despite the selloff. Article Title
• Neutral Sentiment: Commentary around the earnings call says Five Below’s traffic gains came from merchandising and marketing changes, suggesting the strategy is working but still needs more quarters of proof. Article Title
• Negative Sentiment: The stock fell because investors questioned whether recent strength can be repeated and worried about tariff assumptions embedded in guidance, even after the earnings beat. Article Title
• Negative Sentiment: Some market coverage suggests Five Below’s “squishy dumplings” and other fad-driven products may be harder to replicate, raising concerns that growth could slow in coming quarters. Article Title

Five Below Company Profile

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.