Five Below (NASDAQ:FIVE) Shares Gap Up on Strong Earnings

Key Points

• Five Below exceeded quarterly expectations: Adjusted EPS was $1.68 versus the $1.40 consensus, while revenue rose 22.9% year over year to $1.26 billion, above estimates.
• Growth remained strong, with comparable sales up 14.1% and 52 net new stores added, bringing the total to 2,022 locations.
• Management raised its 2026 outlook to $5.63 billion-$5.71 billion in sales and $9.83-$10.31 in adjusted EPS, alongside a new $600 million share-repurchase authorization.

Five Below, Inc. (NASDAQ:FIVE - Get Free Report)'s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $243.08, but opened at $257.00. Five Below shares last traded at $241.2220, with a volume of 363,693 shares.

The specialty retailer reported $1.68 earnings per share for the quarter, topping the consensus estimate of $1.40 by $0.28. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.22 billion. Five Below had a return on equity of 21.31% and a net margin of 8.67%.The firm's revenue for the quarter was up 22.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.81 EPS. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS.

Key Five Below News

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

• Positive Sentiment: Earnings and sales beat expectations. Adjusted Q2 earnings per share reached $1.68, up from $0.81 a year earlier and above the roughly $1.40 consensus estimate. Revenue increased 22.9% to approximately $1.26 billion, exceeding expectations of about $1.22 billion. Five Below Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Comparable sales and store growth were robust. Comparable sales rose 14.1%, supported by traffic and demand for trendy merchandise. Five Below opened 52 net new stores during the quarter and ended the period with 2,022 locations, reinforcing its growth strategy. Five Below Strong Comparable Sales and Store Growth
• Positive Sentiment: Management raised its 2026 outlook. Full-year sales guidance increased to $5.63 billion-$5.71 billion from $5.40 billion-$5.48 billion, while adjusted EPS guidance was set at $9.83-$10.31. Third-quarter adjusted EPS guidance of $1.01-$1.13 also exceeded the prior consensus estimate of $0.86. Five Below Fiscal 2026 Outlook
• Positive Sentiment: A $600 million share-repurchase authorization could support per-share earnings and signal management confidence in the company’s cash-generation prospects. Five Below Share Repurchase Plan
• Neutral Sentiment: Analyst sentiment strengthened, with William Blair reaffirming a Buy rating and Bank of America raising its price target to $340, though the stock’s valuation remains elevated at approximately 31 times earnings.

Wall Street Analyst Weigh In

FIVE has been the subject of several analyst reports. Telsey Advisory Group raised their price objective on shares of Five Below from $280.00 to $305.00 and gave the stock an "outperform" rating in a report on Thursday. Susquehanna downgraded Five Below to a "neutral" rating in a research report on Tuesday, July 21st. HSBC raised Five Below to a "hold" rating in a report on Tuesday, July 21st. Barclays reduced their price target on Five Below from $240.00 to $224.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Finally, BMO Capital Markets started coverage on Five Below in a report on Tuesday, July 21st. They set an "outperform" rating on the stock. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $277.55.

Institutional Investors Weigh In On Five Below

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Corient Private Wealth LP grew its position in Five Below by 29.8% during the second quarter. Corient Private Wealth LP now owns 87,797 shares of the specialty retailer's stock worth $15,785,000 after buying an additional 20,131 shares in the last quarter. Amundi boosted its position in shares of Five Below by 34.9% during the 2nd quarter. Amundi now owns 277,311 shares of the specialty retailer's stock valued at $49,858,000 after acquiring an additional 71,709 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Five Below during the 2nd quarter valued at about $4,188,000. California State Teachers Retirement System grew its holdings in shares of Five Below by 17,961.6% during the second quarter. California State Teachers Retirement System now owns 11,524,359 shares of the specialty retailer's stock worth $2,071,965,000 after purchasing an additional 11,460,553 shares in the last quarter. Finally, Varenne Capital Partners purchased a new position in shares of Five Below during the second quarter worth about $25,305,000.

Five Below Stock Down 0.3%

The company's 50-day moving average is $215.71 and its two-hundred day moving average is $217.34. The company has a market capitalization of $13.39 billion, a P/E ratio of 30.59, a PEG ratio of 1.27 and a beta of 0.99.

About Five Below

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.

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