Q4 Net Sales Increase of 24.3% to
FY 2025 Net Sales Increase of 22.9% to
Q4 GAAP Diluted EPS Increase of 26.3% to
FY 2025 GAAP Diluted EPS Increase of 40.7% to
Provides First Quarter and Fiscal 2026 Outlook
For the fourth quarter ended
- Net sales increased by 24.3% to
$1.73 billion from$1.39 billion in the fourth quarter of fiscal 2024; comparable sales increased by 15.4%. - The Company opened 14 net new stores and ended the quarter with 1,921 stores in 46 states. This represents an increase in stores of 8.5% from the end of the fourth quarter of fiscal 2024.
- Operating income was
$310.9 million compared to$246.8 million in the fourth quarter of fiscal 2024. Adjusted operating income(1) was$312.7 million compared to$253.3 million in the fourth quarter of fiscal 2024. - The effective tax rate was 24.8% compared to 25.2% in the fourth quarter of fiscal 2024.
- Net income was
$238.2 million compared to$187.5 million in the fourth quarter of fiscal 2024. Adjusted net income(1) was$239.6 million compared to$192.4 million in the fourth quarter of fiscal 2024. - Diluted income per common share was
$4.28 compared to$3.39 in the fourth quarter of fiscal 2024. Adjusted diluted income per common share(1) was$4.31 compared to$3.48 in the fourth quarter of fiscal 2024.
(1) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in
For the fiscal year ended
- Net sales increased by 22.9% to
$4.76 billion from$3.88 billion in fiscal 2024; comparable sales increased by 12.8%. - The Company opened 150 net new stores compared to 227 net new stores in fiscal 2024.
- Operating income was
$457.4 million compared to$323.8 million in fiscal 2024. Adjusted operating income(2) was$472.4 million compared to$356.1 million in fiscal 2024. - The effective tax rate was 25.3% compared to 25.1% in fiscal 2024.
- Net income was
$358.6 million compared to$253.6 million in fiscal 2024. Adjusted net income(2) was$369.9 million compared to$277.8 million in fiscal 2024. - Diluted income per common share was
$6.47 compared to$4.60 in fiscal 2024. Adjusted diluted income per common share(2) was$6.67 compared to$5.04 in fiscal 2024.
(2) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in
First Quarter and Fiscal 2026 Outlook:
The Company expects the following results for the first quarter and full year of fiscal 2026. This outlook includes the expected impact of tariffs in place as we began the fiscal year and does not include the impact of share repurchases, if any.
For the first quarter of Fiscal 2026:
- Net sales are expected to be in the range of
$1.18 billion to$1.20 billion based on opening approximately 45 net new stores and assumes an approximate 14% to 16% increase in comparable sales. - Net income is expected to be in the range of
$86 million to$93 million . Adjusted net income(3) is expected to be in the range of$88 million to$94 million . - Diluted income per common share is expected to be in the range of
$1.55 to$1.67 on approximately 55.6 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of$1.57 to$1.69 .
(3) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, net of income tax impact.
For the full year of Fiscal 2026:
- Net sales are expected to be in the range of
$5.20 billion to$5.30 billion based on opening approximately 150 net new stores and assumes an approximate 3% to 5% increase in comparable sales. - Net income is expected to be in the range of
$429 million to$457 million . Adjusted net income(4) is expected to be in the range of$431 million to$459 million . - Diluted income per common share is expected to be in the range of
$7.69 to$8.20 on approximately 55.7 million diluted weighted average shares outstanding. Adjusted diluted income per common share(4) is expected to be in the range of$7.74 to$8.25 . - Gross capital expenditures are expected to be approximately
$230 million to$250 million in fiscal 2026.
(4) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, net of income tax impact.
Conference Call Information:
A conference call to discuss the financial results for the fourth quarter and full year of fiscal 2025 is scheduled for today,
Non-GAAP Information:
This press release includes the following non-GAAP financial measures: gross profit, adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share. The Company has reconciled these non-GAAP financial measures, with respect to the fourth quarter and fiscal year ended
Forward-Looking Statements:
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be protected by the “safe harbor” provisions therein. Such statements reflect management’s current views and estimates regarding the Company’s industry, business strategy, goals, expectations and outlook concerning its market position, operations, margins, profitability, capital expenditures, liquidity and capital resources, store count potential and other financial and operating information. Investors can identify these statements by the fact that they use words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future” and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Although we believe there is a reasonable basis for such forward-looking statements, our actual results may differ materially from these expectations due to risks that include, but are not limited to, risks related to disruption to the global supply chain, increased cost of freight, constraints on shipping capacity to transport inventory or the timely receipt of inventory, risks related to the Company’s strategy and expansion plans, risks related to our ability to attract, retain, and motivate qualified executive talent, risks related to disruptions in our information technology systems and our ability to maintain and upgrade those systems, risks related to our ability to successfully implement our online retail operations, risks related to cyberattacks or other cyber incidents, such as the failure to secure customers’ confidential or credit card information, or other private data relating to our crew or the Company, including the costs associated with protection against or remediation of such incidents, risks related to increased usage of machine learning and other types of artificial intelligence in our business, and challenges with properly managing its use, risks related to our ability to select, obtain, distribute and market merchandise profitably, risks related to our reliance on merchandise manufactured outside of
About Five Below:
Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between
Investor Contact:
Vice President, Investor Relations
InvestorRelations@fivebelow.com
Consolidated Balance Sheets (Unaudited) (in thousands) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 723,699 | $ | 331,718 | |
| Short-term investment securities | 208,508 | 197,073 | |||
| Inventories | 846,609 | 659,500 | |||
| Prepaid income taxes and tax receivable | 5,210 | 4,649 | |||
| Prepaid expenses and other current assets | 132,697 | 158,427 | |||
| Total current assets | 1,916,723 | 1,351,367 | |||
| Property and equipment, net | 1,234,331 | 1,261,728 | |||
| Operating lease assets | 1,765,704 | 1,706,542 | |||
| Other assets | 20,261 | 19,937 | |||
| $ | 4,937,019 | $ | 4,339,574 | ||
| Liabilities and Shareholders’ Equity | |||||
| Current liabilities: | |||||
| Line of credit | $ | — | $ | — | |
| Accounts payable | 368,381 | 260,343 | |||
| Income taxes payable | 56,644 | 51,998 | |||
| Accrued salaries and wages | 67,505 | 19,743 | |||
| Other accrued expenses | 160,328 | 149,495 | |||
| Operating lease liabilities | 301,148 | 274,863 | |||
| Total current liabilities | 954,006 | 756,442 | |||
| Other long-term liabilities | 8,667 | 8,210 | |||
| Deferred income taxes | 50,015 | 59,891 | |||
| Long-term operating lease liabilities | 1,731,041 | 1,706,704 | |||
| Total liabilities | 2,743,729 | 2,531,247 | |||
| Shareholders’ equity: | |||||
| Common stock | 551 | 549 | |||
| Additional paid-in capital | 178,791 | 152,471 | |||
| Retained earnings | 2,013,948 | 1,655,307 | |||
| Total shareholders’ equity | 2,193,290 | 1,808,327 | |||
| $ | 4,937,019 | $ | 4,339,574 | ||
Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) | ||||||||||||
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
| Net sales | $ | 1,728,480 | $ | 1,390,885 | $ | 4,764,147 | $ | 3,876,527 | ||||
| Cost of goods sold (exclusive of items shown separately below) | 1,031,496 | 831,571 | 3,049,461 | 2,523,865 | ||||||||
| Selling, general and administrative expenses | 337,110 | 267,036 | 1,065,164 | 861,398 | ||||||||
| Depreciation and amortization | 48,992 | 45,514 | 192,123 | 167,447 | ||||||||
| Operating income | 310,882 | 246,764 | 457,399 | 323,817 | ||||||||
| Interest income and other income, net | 5,972 | 3,996 | 22,972 | 14,848 | ||||||||
| Income before income taxes | 316,854 | 250,760 | 480,371 | 338,665 | ||||||||
| Income tax expense | 78,628 | 63,303 | 121,730 | 85,054 | ||||||||
| Net income | $ | 238,226 | $ | 187,457 | $ | 358,641 | $ | 253,611 | ||||
| Basic income per common share | $ | 4.32 | $ | 3.41 | $ | 6.51 | $ | 4.61 | ||||
| Diluted income per common share | $ | 4.28 | $ | 3.39 | $ | 6.47 | $ | 4.60 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic shares | 55,179,228 | 55,017,992 | 55,112,281 | 55,055,064 | ||||||||
| Diluted shares | 55,597,007 | 55,217,618 | 55,436,972 | 55,156,342 | ||||||||
Consolidated Statements of Cash Flows (Unaudited) (in thousands) | ||||||||
| Fifty-Two Weeks Ended | ||||||||
| Operating activities: | ||||||||
| Net income | $ | 358,641 | $ | 253,611 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 192,123 | 167,447 | ||||||
| Share-based compensation expense | 34,680 | 15,589 | ||||||
| Deferred income tax benefit | (9,876 | ) | (6,852 | ) | ||||
| Other non-cash expenses | 2,985 | 1,312 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | (187,109 | ) | (74,873 | ) | ||||
| Prepaid income taxes and tax receivable | (561 | ) | 185 | |||||
| Prepaid expenses and other assets | 25,262 | (7,539 | ) | |||||
| Accounts payable | 105,516 | 9,464 | ||||||
| Income taxes payable | 4,646 | 10,226 | ||||||
| Accrued salaries and wages | 47,762 | (10,285 | ) | |||||
| Operating leases | (8,540 | ) | 45,891 | |||||
| Other accrued expenses | 20,899 | 26,472 | ||||||
| Net cash provided by operating activities | 586,428 | 430,648 | ||||||
| Investing activities: | ||||||||
| Purchases of investment securities and other investments | (352,385 | ) | (192,918 | ) | ||||
| Sales, maturities, and redemptions of investment securities | 340,950 | 283,974 | ||||||
| Capital expenditures | (174,741 | ) | (323,994 | ) | ||||
| Net cash used in investing activities | (186,176 | ) | (232,938 | ) | ||||
| Financing activities: | ||||||||
| Net proceeds from issuance of common stock | 941 | 1,079 | ||||||
| Repurchase and retirement of common stock | — | (40,213 | ) | |||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 2 | 340 | ||||||
| Common shares withheld for taxes | (9,214 | ) | (6,947 | ) | ||||
| Net cash used in financing activities | (8,271 | ) | (45,741 | ) | ||||
| Net increase in cash and cash equivalents | 391,981 | 151,969 | ||||||
| Cash and cash equivalents at beginning of year | 331,718 | 179,749 | ||||||
| Cash and cash equivalents at end of year | $ | 723,699 | $ | 331,718 | ||||
GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) | |||||||||||
| Reconciliation of gross profit to adjusted gross profit | |||||||||||
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
| Gross profit(5) | $ | 696,984 | $ | 559,314 | $ | 1,714,686 | $ | 1,352,662 | |||
| Adjustments: | |||||||||||
| Retention awards(6) | 366 | 390 | 1,512 | 987 | |||||||
| Cost-optimization initiatives(7) | — | 3,500 | 4,100 | 3,879 | |||||||
| Non-recurring lease acquisition costs(8) | — | — | 495 | — | |||||||
| Non-recurring inventory write-off | — | 40 | — | 21,248 | |||||||
| Adjusted gross profit(9) | $ | 697,350 | $ | 563,244 | $ | 1,720,793 | $ | 1,378,776 | |||
Reconciliation of operating income, as reported, to adjusted operating income
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||
| Operating income, as reported | $ | 310,882 | $ | 246,764 | $ | 457,399 | $ | 323,817 | |||||
| Adjustments: | |||||||||||||
| Retention awards(6) | 1,770 | 4,996 | 8,737 | 11,574 | |||||||||
| Cost-optimization initiatives(7) | — | 4,430 | 4,960 | 5,974 | |||||||||
| Non-recurring lease acquisition costs(8) | — | — | 495 | — | |||||||||
| Non-recurring inventory write-off | — | 267 | 830 | 21,475 | |||||||||
| Non-recurring stock compensation benefit | — | (3,126 | ) | — | (9,243 | ) | |||||||
| Non-recurring employment-related litigation | — | — | — | 1,976 | |||||||||
| Non-recurring asset disposal | — | — | — | 513 | |||||||||
| Adjusted operating income(9) | $ | 312,652 | $ | 253,330 | $ | 472,421 | $ | 356,086 | |||||
Reconciliation of net income, as reported, to adjusted net income
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income, as reported | $ | 238,226 | $ | 187,457 | $ | 358,641 | $ | 253,611 | |||||
| Adjustments: | |||||||||||||
| Retention awards, net of tax(6) | 1,331 | 3,735 | 6,523 | 8,668 | |||||||||
| Cost-optimization initiatives, net of tax(7) | — | 3,312 | 3,703 | 4,474 | |||||||||
| Non-recurring lease acquisition costs, net of tax(8) | — | — | 369 | — | |||||||||
| Non-recurring inventory write-off, net of tax | — | 199 | 620 | 16,083 | |||||||||
| Non-recurring stock compensation benefit, net of tax | — | (2,337 | ) | — | (6,922 | ) | |||||||
| Non-recurring employment-related litigation, net of tax | — | — | — | 1,480 | |||||||||
| Non-recurring asset disposal, net of tax | — | — | — | 384 | |||||||||
| Adjusted net income(9) | $ | 239,557 | $ | 192,366 | $ | 369,856 | $ | 277,776 | |||||
Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||
| Diluted income per common share, as reported | $ | 4.28 | $ | 3.39 | $ | 6.47 | $ | 4.60 | |||||
| Adjustments: | |||||||||||||
| Retention awards per share(6) | 0.02 | 0.07 | 0.12 | 0.16 | |||||||||
| Cost-optimization initiatives per share(7) | — | 0.06 | 0.07 | 0.08 | |||||||||
| Non-recurring lease acquisition costs per share(8) | — | — | 0.01 | — | |||||||||
| Non-recurring inventory write-off per share | — | — | 0.01 | 0.29 | |||||||||
| Non-recurring stock compensation benefit per share | — | (0.04 | ) | — | (0.13 | ) | |||||||
| Non-recurring employment-related litigation per share | — | — | — | 0.03 | |||||||||
| Non-recurring asset disposal per share | — | — | — | 0.01 | |||||||||
| Adjusted diluted income per common share(9) | $ | 4.31 | $ | 3.48 | $ | 6.67 | $ | 5.04 | |||||
(5) Gross profit, a non-GAAP financial measure, is equal to our net sales less our cost of goods sold.
(6) Retention awards relate to the on-going expense recognition of cash and equity granted to certain individuals in fiscal 2024 during the CEO transition that will be earned and will vest through fiscal 2026.
(7) Represents charges related to the cost-optimization of certain functions.
(8) Represents non-recurring costs incurred with the strategic acquisition of certain leases.
(9) Components may not add to total due to rounding.
