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

Key Points

• Five Below beat quarterly expectations, reporting EPS of $2.22 versus the $1.77 consensus estimate and revenue of $1.29 billion versus $1.23 billion expected.
• Business momentum remained strong as Q1 net sales rose 32.5% and comparable sales increased 22.7%, while operating income and profitability also improved sharply.
• Management raised guidance, updating FY 2026 EPS to $8.65-$9.05 and Q2 EPS to $1.17-$1.29, signaling confidence that growth can continue.

Five Below (NASDAQ:FIVE - Get Free Report) released its quarterly earnings data on Wednesday. The specialty retailer reported $2.22 earnings per share for the quarter, beating the consensus estimate of $1.77 by $0.45, FiscalAI reports. Five Below had a return on equity of 18.70% and a net margin of 7.53%.The business had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.23 billion. Five Below updated its FY 2026 guidance to 8.650-9.050 EPS and its Q2 2026 guidance to 1.170-1.290 EPS.

Five Below Trading Up 1.1%

Shares of Five Below stock traded up $2.52 on Wednesday, reaching $222.89. 2,752,018 shares of the company were exchanged, compared to its average volume of 1,132,798. The company has a market capitalization of $12.32 billion, a price-to-earnings ratio of 34.50, a PEG ratio of 1.68 and a beta of 0.97. Five Below has a one year low of $119.06 and a one year high of $251.63. The company has a 50-day moving average of $225.94 and a 200 day moving average of $204.04.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on FIVE. JPMorgan Chase & Co. lifted their price objective on Five Below from $296.00 to $306.00 and gave the company an "overweight" rating in a report on Monday, May 18th. Sanford C. Bernstein reiterated a "market perform" rating and set a $206.00 price objective on shares of Five Below in a report on Monday, February 9th. BNP Paribas Exane lifted their price objective on Five Below from $189.00 to $262.00 and gave the company an "outperform" rating in a report on Thursday, March 19th. Deutsche Bank Aktiengesellschaft increased their price objective on Five Below from $247.00 to $287.00 and gave the stock a "buy" rating in a report on Thursday, March 19th. Finally, Wells Fargo & Company increased their price objective on Five Below from $220.00 to $260.00 and gave the stock an "overweight" rating in a report on Thursday, March 19th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $240.80.

Five Below News Roundup

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

• Positive Sentiment: Q1 net sales jumped 32.5% to $1.29 billion, while comparable sales rose 22.7%, signaling broad-based demand strength across new and existing stores. Five Below, Inc. Announces First Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Profitability improved sharply, with operating income rising to $154.2 million and diluted EPS increasing to $2.21, well above the prior-year quarter. Five Below, Inc. Announces First Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised its full-year 2026 sales and EPS guidance, projecting net sales of $5.40 billion to $5.48 billion and continued store expansion, which suggests confidence in momentum continuing. Five Below, Inc. Reports 32.5% Increase in Q1 Net Sales, Raises 2026 Sales and EPS Outlook
• Neutral Sentiment: The company opened 49 net new stores in the quarter, ending with 1,970 locations, reinforcing its growth story but also highlighting ongoing capital needs tied to expansion. Five Below, Inc. Announces First Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Investor attention is also focused on tariff exposure and higher operating costs, which could pressure margins later in the year even after the strong Q1 report. Five Below, Inc. Reports 32.5% Increase in Q1 Net Sales, Raises 2026 Sales and EPS Outlook

Insider Activity at Five Below

In other news, Director Ronald Sargent sold 10,000 shares of the stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $231.28, for a total value of $2,312,800.00. Following the completion of the sale, the director owned 83,674 shares of the company's stock, valued at approximately $19,352,122.72. This represents a 10.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Kenneth R. Bull sold 10,000 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $234.14, for a total value of $2,341,400.00. Following the completion of the sale, the chief operating officer directly owned 92,531 shares of the company's stock, valued at approximately $21,665,208.34. The trade was a 9.75% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.96% of the company's stock.

Institutional Trading of Five Below

A number of hedge funds have recently made changes to their positions in FIVE. Advisory Services Network LLC acquired a new stake in shares of Five Below in the third quarter valued at approximately $32,000. iSAM Funds UK Ltd acquired a new stake in shares of Five Below in the third quarter valued at approximately $40,000. NewEdge Advisors LLC lifted its position in shares of Five Below by 143.0% in the first quarter. NewEdge Advisors LLC now owns 1,096 shares of the specialty retailer's stock valued at $82,000 after buying an additional 645 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its position in shares of Five Below by 314.2% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 439 shares of the specialty retailer's stock valued at $83,000 after buying an additional 333 shares during the last quarter. Finally, GW&K Investment Management LLC lifted its position in shares of Five Below by 69.0% in the fourth quarter. GW&K Investment Management LLC now owns 475 shares of the specialty retailer's stock valued at $90,000 after buying an additional 194 shares during the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.