Five Below Raises Fiscal 2026 Sales and Earnings Outlook
The value retailer lifted full-year net sales to as much as $5.71 billion after a 14.1% comparable-sales gain in the quarter ended August 1, 2026.
Five Below, Inc. (FIVE) raised its full-year fiscal 2026 sales and earnings outlook after a second quarter in which comparable-store sales growth cooled from the first-quarter pace even as the company still posted double-digit comparable gains.
The Philadelphia-based value retailer now expects fiscal 2026 net sales of $5.63 billion to $5.71 billion, up from a prior range of $5.40 billion to $5.48 billion. Full-year comparable sales are now seen at 10% to 12%, versus a prior 6% to 8%. GAAP diluted earnings are projected at $12.10 to $12.58 a share, compared with $8.62 to $9.02 previously. Adjusted diluted earnings are now $9.83 to $10.31 a share, versus $8.65 to $9.05.
For the quarter ended August 1, 2026, net sales rose 22.9% to $1.26 billion from $1.03 billion a year earlier. Comparable sales increased 14.1%. Sequentially, sales were $1.26 billion after $1.29 billion in the first quarter, and comparable growth slowed from 22.7%.
Chief Executive Winnie Park said the company remained focused on being “THE destination for the KID and the KID in all of us” and described a balance of new-store growth and double-digit comparable sales growth for the past five quarters as evidence that the operating flywheel was gaining momentum. She said the company was raising its full-year outlook.
The company opened 52 net new stores in the quarter and ended with 2,022 stores in 46 states, an 8.8% increase versus the end of the second quarter of fiscal 2025.
Reported operating income was $275.4 million, compared with $52.4 million a year earlier. Adjusted operating income was $113.2 million. Net income was $221.4 million, and GAAP diluted earnings were $3.99 a share. Adjusted diluted earnings were $1.68 a share. The effective tax rate was 23.9%.
The GAAP results included IEEPA tariff refunds of $163.6 million in the quarter. Adjusted figures exclude those refunds, as well as retention awards related to the fiscal 2024 CEO transition. Adjusted operating income of $113.2 million compared with $55.1 million a year earlier. Adjusted net income was $93.4 million.
The company repurchased about 311,000 shares in the quarter at a cost of about $60.0 million. On August 29, 2026, the board approved a new $600 million share-repurchase authorization, replacing remaining capacity under a program dated November 27, 2023. The new program has no fixed expiration date.
Cash and cash equivalents were $561.1 million at August 1, 2026. Short-term investment securities were $626.8 million. Inventories were $941.2 million. Total shareholders’ equity was $2.48 billion.
For the third quarter of fiscal 2026, the company expects net sales of $1.21 billion to $1.23 billion, comparable sales of 8% to 10%, about 40 net new stores, net income of $56 million to $63 million, and diluted earnings of $1.01 to $1.13 a share on 55.4 million diluted weighted average shares. That outlook includes tariff rates currently in place and excludes future tariff refunds and share repurchases, if any.
Full-year net new stores remain approximately 150. Gross capital expenditures are now expected at $250 million to $260 million, versus $230 million to $250 million previously. Diluted weighted average shares for the full year are 55.5 million.
Park said the company looked forward to delivering “special curtain up moments” through the holiday season and beyond. The company said most items are priced between $1 and $5, with some extreme-value items beyond $5.