Q3 GAAP Diluted EPS of $0.66, Q3 Adjusted Diluted EPS of $0.68
Increases Full Year 2025 Sales and EPS Outlook
PHILADELPHIA, PA, Dec. 03, 2025 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ:FIVE) today announced financial results for the third quarter and year to date period ended November 1, 2025.
For the third quarter ended November 1, 2025:
Net sales increased by 23.1% to $1,038.3 million from $843.7 million in the third quarter of fiscal 2024; comparable sales increased by 14.3%.
The Company opened 49 net new stores and ended the quarter with 1,907 stores in 44 states. This represents an increase in stores of 9.0% from the end of the third quarter of fiscal 2024.
Operating income was $43.3 million compared to an operating loss of $0.6 million in the third quarter of fiscal 2024. Adjusted operating income(1) was $45.1 million compared to $27.6 million in the third quarter of fiscal 2024.
The effective tax rate was 25.7% compared to 23.4% in the third quarter of fiscal 2024.
Net income was $36.5 million compared to $1.7 million in the third quarter of fiscal 2024. Adjusted net income(1) was $37.8 million compared to $23.3 million in the third quarter of fiscal 2024.
Diluted income per common share was $0.66 compared to $0.03 in the third quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.68 compared to $0.42 in the third 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 the United States ("GAAP") is set forth in the schedule accompanying this release. See also "Non-GAAP Information."
Winnie Park, CEO of Five Below, said, "We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth. This outstanding performance reflects our Crew's great execution of our customer-centric strategy: delivering trend-right merchandise at exceptional value, connecting with our customers through compelling marketing campaigns, and creating amazing shopping experiences that truly resonate."
Ms. Park continued, "We are raising our guidance for fiscal 2025 to reflect these strong third quarter results and our current outlook for the fourth quarter. Our dedicated teams are collaborating across the company and delivering excellent end-to-end execution, in service of our customer, the KID and the KID in all of us. As we head into the holiday season, we are well-positioned to delight our customers with unique gifts and stocking stuffers at incredible value in a fun shopping environment."
For the year to date period ended November 1, 2025:
Net sales increased by 22.1% to $3.04 billion from $2.49 billion in the year to date period of fiscal 2024; comparable sales increased by 11.3%.
The Company opened 136 net new stores compared to 205 new stores in the year to date period of fiscal 2024.
Operating income was $146.5 million compared to $77.1 million in the year to date period of fiscal 2024. Adjusted operating income(2) was $159.8 million compared to $102.8 million in the year to date period of fiscal 2024.
The effective tax rate was 26.4% compared to 24.7% in the year to date period of fiscal 2024.
Net income was $120.4 million compared to $66.2 million in the year to date period of fiscal 2024. Adjusted net income(2) was $130.2 million compared to $85.5 million in the year to date period of fiscal 2024.
Diluted income per common share was $2.17 compared to $1.20 in the year to date period of fiscal 2024. Adjusted diluted income per common share(2) was $2.35 compared to $1.55 in the year to date period of 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 the United States ("GAAP") is set forth in the schedule accompanying this release. See also "Non-GAAP Information."
Fourth Quarter and Fiscal 2025 Outlook:The Company expects the following results for the fourth quarter and full year of fiscal 2025. This outlook includes the expected impact of tariffs currently in place.
For the fourth quarter of Fiscal 2025:
Net sales are expected to be in the range of $1.58 billion to $1.61 billion based on opening approximately 14 net new stores and assumes an approximate 6% to 8% increase in comparable sales.
Net income is expected to be in the range of $186 million to $196 million. Adjusted net income(3) is expected to be in the range of $187 million to $197 million.
Diluted income per common share is expected to be in the range of $3.34 to $3.52 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 $3.36 to $3.54.
This outlook does not include the impact of share repurchases, if any.
(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 impacts.
For the full year of Fiscal 2025:
Net sales are expected to be in the range of $4.62 billion to $4.65 billion based on opening approximately 150 net new stores and assumes an approximate 9.4% to 10.1% increase in comparable sales.
Net income is expected to be in the range of $306 million to $316 million. Adjusted net income(4) is expected to be in the range of $317 million to $327 million.
Diluted income per common share is expected to be in the range of $5.51 to $5.69 on approximately 55.5 million diluted weighted average shares outstanding. Adjusted diluted income per common share(4) is expected to be in the range of $5.71 to $5.89.
Gross capital expenditures are expected to be approximately $200 million.
This outlook does not include the impact of share repurchases, if any.
(4) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, costs associated with cost-optimization initiatives, execution of the inventory write-off, and costs incurred with the strategic acquisition of certain leases, net of income tax impacts.
Conference Call Information:A conference call to discuss the financial results for the third quarter of fiscal 2025 is scheduled for today, December 3, 2025, at 4:30 p.m. Eastern Time. A live audio webcast of the conference call will be available online at investor.fivebelow.com, where a replay will be available shortly after the conclusion of the call. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 approximately 10 minutes prior to the start of the call.
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 the most directly comparable GAAP financial measures within this filing. The Company believes that these non-GAAP financial measures provide its management with comparable financial data for internal financial analysis and provide meaningful supplemental information to investors. Non-GAAP financial measures have limitations as analytical tools. Other companies in the Company's industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP.
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 the United States, including risks related to direct and indirect impact of current and potential tariffs imposed, threatened, or proposed by the United States on foreign imports, including, without limitation, the tariffs themselves, any counter-measures thereto (in addition to any applicable foreign trade restrictions, generally) and any indirect effects on consumer discretionary spending, risks related to the availability of suitable new store locations and the dependence on the volume of traffic to our stores and website, risks related to our dependence on our executive officers, senior management and other key personnel or our ability to hire additional qualified personnel, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, risks related to inflation and increasing commodity prices and related effects, such as a reduction in our unit sales (including an inability to increase sales), damage to our reputation with our customers, our becoming less competitive in the marketplace or exposure to fraud or theft due to customer payment-related risks, risks related to potential recessions and systematic failure of the banking system in the United States or globally, risks related to natural disasters, adverse weather conditions, pandemic outbreaks, global political events, war, terrorism or civil unrest (including any negative effects to our business and result of operations), risks related to building, operating or expanding shipcenters or network capacity, risks related to our ability to successfully manage inventory balance and inventory shrinkage, quality or safety concerns about the Company's merchandise (including the impact of product and food safety claims and legislation), increased competition from other retailers including online retailers, risks related to the seasonality of our business, risks related to our ability to protect our brand name and other intellectual property, risks related to customers' payment methods, risks associated with the restrictions imposed by our indebtedness on our current and future operations, the impact of changes in tax legislation and accounting standards, risks related to our insurance programs and their effect on our financial performance and risks associated with leasing substantial amounts of space and owning real property. For further details and a discussion of these risks and uncertainties, see the Company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company's assumptions prove incorrect, the Company's actual results may vary in material respects from those projected in these forward-looking statements, despite the Company's reasonable basis for such statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
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 $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,900 stores in 46 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.
Investor Contact:Five Below, Inc.Christiane PelzVice President, Investor
FIVE BELOW, INC.Consolidated Balance Sheets(Unaudited)(in thousands)
November 1, 2025
February 1, 2025
November 2, 2024
Assets
Current assets:
Cash and cash equivalents
$
350,983
$
331,718
$
169,702
Short-term investment securities
173,515
197,073
46,941
Inventories
1,112,263
659,500
817,832
Prepaid income taxes and tax receivable
12,527
4,649
20,348
Prepaid expenses and other current assets
110,834
158,427
157,396
Total current assets
1,760,122
1,351,367
1,212,219
Property and equipment, net
1,252,212
1,261,728
1,259,768
Operating lease assets
1,743,865
1,706,542
1,692,978
Long-term investment securities
11,261
—
—
Other assets
21,858
19,937
20,354
$
4,789,318
$
4,339,574
$
4,185,319
Liabilities and Shareholders' Equity
Current liabilities:
Line of credit
$
—
$
—
$
—
Accounts payable
519,651
260,343
352,180
Income taxes payable
82
51,998
—
Accrued salaries and wages
57,583
19,743
28,758
Other accrued expenses
184,530
149,495
143,388
Operating lease liabilities
335,087
274,863
351,062
Total current liabilities
1,096,933
756,442
875,388
Other long-term liabilities
8,760
8,210
8,962
Long-term operating lease liabilities
1,679,106
1,706,704
1,616,964
Deferred income taxes
54,283
59,891
68,153
Total liabilities
2,839,082
2,531,247
2,569,467
Shareholders' equity:
Common stock
550
549
549
Additional paid-in capital
173,964
152,471
147,453
Retained earnings
1,775,722
1,655,307
1,467,850
Total shareholders' equity
1,950,236
1,808,327
1,615,852
$
