Five Below, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 3 December 2025: press release. Guidance figures: 6 raised, 1 lowered, 6 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 23.1%: Net sales were $1,038.3 million against $843.7 million a year earlier, and comparable sales rose 14.3%. Source
• Diluted EPS $0.66 against $0.03: Adjusted diluted EPS was $0.68 against $0.42; the $0.02 difference is the retention award adjustment. Source
• Year-to-date sales up 22.1%: Year-to-date net sales were $3.04 billion against $2.49 billion, with comparable sales up 11.3%. Source
• 49 net new stores in the quarter: The company ended the quarter with 1,907 stores in 44 states, an increase of 9.0% from a year earlier. Source
• Gross profit rose $93.4 million: Gross profit was $351.4 million against $258.0 million; adjusted gross profit was $351.8 million against $280.1 million. Source
• Tariffs included in guidance: Management said the guidance includes the expected impact of tariffs currently in place. Source

“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.”

Winnie Park, CEO of Five Below

Guidance

What changed from last quarter

• Guidance raised: Full-year 2025 sales and EPS guidance raised, covering net sales, comparable sales, net income and diluted EPS. Source
• New guidance: Fourth-quarter 2025 guidance given for the first time; the prior release covered only the third quarter and full year. Source
• Guidance lowered: Gross capital expenditures guidance reduced from approximately $210 million to approximately $200 million. Source
• Guidance kept: Full-year net new store opening assumption kept at approximately 150. Source

Third quarter results

• Net sales rose 23.1%: Net sales were $1,038.3 million against $843.7 million a year earlier, and comparable sales rose 14.3%. Source
• Diluted EPS $0.66 against $0.03: Adjusted diluted EPS was $0.68 against $0.42; the $0.02 difference is the retention award adjustment. Source
• Operating income positive against a loss: Operating income was $43.3 million against an operating loss of $0.6 million; adjusted operating income was $45.1 million against $27.6 million. Source

Year-to-date results

• Year-to-date sales up 22.1%: Year-to-date net sales were $3.04 billion against $2.49 billion, with comparable sales up 11.3%. Source
• Year-to-date diluted EPS $2.17: Year-to-date diluted EPS was $2.17 against $1.20; adjusted diluted EPS was $2.35 against $1.55. Source
• Year-to-date net income higher: Year-to-date net income was $120.4 million against $66.2 million; adjusted net income was $130.2 million against $85.5 million. Source

“This outstanding performance reflects our Crew's great execution of our customer-centric strategy: delivering trend-right merchandise at exceptional value”

Winnie Park, CEO of Five Below

Stores and footprint

• 49 net new stores in the quarter: The company ended the quarter with 1,907 stores in 44 states, an increase of 9.0% from a year earlier. Source
• Year-to-date openings below prior year: Year-to-date net new stores were 136, against 205 new stores in the prior-year period. Source
• Fourth-quarter openings planned: Fourth-quarter guidance assumes about 14 net new stores, against 49 in the third quarter. Source

Products and customers

• Marketing and shopping experience: Management tied the quarter to compelling marketing campaigns and shopping experiences that resonate with customers. Source
• Trend-right merchandise at value: Management cited trend-right merchandise at exceptional value as part of its customer-centric strategy. Source
• Holiday gifts and stocking stuffers: Management said it is positioned for holiday gifts and stocking stuffers in a fun shopping environment. Source

“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.”

Winnie Park, CEO of Five Below

Costs, margins and tax

• Gross profit rose $93.4 million: Gross profit was $351.4 million against $258.0 million; adjusted gross profit was $351.8 million against $280.1 million. Source
• SG&A up $43.9 million: Selling, general and administrative expenses were $259.2 million against $215.4 million; cost of goods sold was $686.9 million against $585.7 million. Source
• Effective tax rate higher: Effective tax rate was 25.7% against 23.4% a year earlier. Source

Tariffs and inventory

• Tariffs included in guidance: Management said the guidance includes the expected impact of tariffs currently in place. Source
• Inventories higher than a year earlier: Inventories were $1,112.3 million at November 1, 2025, against $817.8 million a year earlier and $659.5 million at February 1, 2025. Source
• Inventory write-off charges excluded: Adjusted results exclude year-to-date charges for the inventory write-off and lease acquisition costs. Source

Cash flow and capital

• Operating cash flow higher: Net cash provided by operating activities was $145.5 million year to date, against $67.1 million in the prior-year period. Source
• Capital spending lower year to date: Net cash used in investing activities was $121.7 million, including capital expenditures of $134.0 million against $271.9 million. Source
• No repurchases in year to date: No share repurchases were made in the year to date, against $40.2 million a year earlier; guidance excludes any repurchases. Source
• Cash and investments held: Cash and cash equivalents were $351.0 million, with $173.5 million short-term and $11.3 million long-term investment securities; no line of credit was drawn. Source

People and leadership

• Retention awards from CEO transition: Retention awards of $1.8 million in the third quarter were excluded from adjusted results, against $4.9 million a year earlier; vesting runs through fiscal 2026. Source
• Cost-optimization charges year to date: Year-to-date charges of $5.0 million relate to cost optimization of certain functions. Source
• Crew execution credited: CEO Winnie Park credited teams working across the company for collaboration and end-to-end execution. Source

Coming up, as management said on 3 December 2025

• Fourth quarter and holiday season: Fourth-quarter guidance assumes about 14 net new stores, and management said it is heading into the holiday season. Source

Figures management reported

Risks management discussed

• External: Management said its guidance includes the expected impact of tariffs currently in place. Source
• Operational: Adjusted results exclude year-to-date charges for an inventory write-off and lease acquisition costs. Source

Earlier plans management reported on

• Ahead: Management said third-quarter results surpassed its expectations. Source
• Not stated: Retention awards tied to the CEO transition are scheduled to vest through fiscal 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.