Five Below Earnings Call Transcripts
Fiscal Year 2026
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Delivered 23% sales growth and 32% EPS growth in 2025, driven by customer-centric strategies, strong execution, and broad-based comp gains. 2026 guidance calls for 10% sales growth, 20% EPS growth, and continued investment in stores, technology, and marketing.
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Delivered 23% net sales growth and 14% comp sales growth in Q3, with adjusted EPS up 62% year-over-year. Raised full-year outlook, expecting $4.62–$4.65 billion in sales and 9.4–10.1% comp growth, driven by strong execution, new store openings, and digital marketing.
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Achieved first-ever billion-dollar sales quarter outside Q4, with sales up 24% and comps up 12.4%. Raised full-year guidance, but tariffs and higher SG&A remain headwinds. Broad-based product strength, pricing simplification, and operational improvements drove results.
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Q1 2025 results exceeded expectations with 19.5% sales growth and 7.1% comp increase, driven by strong product, value, and store experience. Tariff mitigation and vendor diversification are underway, with full-year guidance raised despite margin pressure from tariffs.
Fiscal Year 2025
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Management highlighted a strategic refocus on core youth customers, digital engagement, and operational discipline, driving record holiday sales and broad-based growth. Confident in long-term expansion and margin improvement, leadership sees significant untapped potential ahead.
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Sales grew 10.4% to $3.88B in 2024, with adjusted EPS of $5.04 and 228 new stores opened. 2025 guidance anticipates 10% sales growth, margin pressure from tariffs, and continued focus on value, newness, and store expansion.
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Holiday results met expectations, with strong Black Friday and last-minute sales, but inventory depth and marketing remain key opportunities. Leadership transition emphasizes a return to basics and omnichannel growth, with a focus on newness and customer experience.
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Q3 sales grew 15% to $844M with comp sales up 0.6% and adjusted EPS of $0.42, beating guidance. Strong performance in tech, seasonal, and style categories, plus a record 82 new stores, drove results. Full-year sales are expected to rise 9–10% despite margin headwinds and a compressed holiday season.
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Q2 saw 9.4% sales growth but a 5.7% comp decline, with margins pressured by deleverage and shrink. Leadership is executing a strategic reset focused on core customers, SKU simplification, and operational improvements, while moderating 2025 store growth to 150–180 openings.
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Q1 sales grew 11.8% but comps fell 2.3% as cautious consumer spending and macro pressures weighed on results. Guidance for 2024 was lowered, with comps expected down 3–5% and cost optimization, shrink mitigation, and value initiatives underway.
Fiscal Year 2024
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Management remains confident in long-term growth, supported by new store expansion, Five Beyond rollout, and a strong balance sheet. Short-term challenges include consumer pullback and shrink, addressed through pricing, labor, and merchandising tests. Seasonal events and cost optimization are expected to drive improvement.