Five Below, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 3 June 2026: press release. Guidance figures: 4 raised, 3 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales and comparable sales rose: Net sales were $1,285.6 million, up 32.5% from $970.5 million a year earlier. Comparable sales rose 22.7%. Source
• Diluted EPS rose to $2.21: Diluted EPS was $2.21 against $0.75; adjusted diluted EPS was $2.22 against $0.86 in the first quarter of fiscal 2025. Source
• Results compared with prior first-quarter guidance: The March release gave first-quarter net sales of $1.18 billion to $1.20 billion, about 45 net new stores, and comparable sales growth of approximately 14% to 16%.
• Growth broad across customer groups: Management said growth was broad-based across merchandising worlds, new and existing customers, and all demographic and geographic segments. Source
• 49 net new stores opened: The company opened 49 net new stores and ended the quarter with 1,970 stores in 46 states. Source
• Second-quarter ranges first given: Second-quarter net sales of $1.18 billion to $1.20 billion, comparable sales up 7% to 9%, net income of $64 million to $71 million, and diluted EPS of $1.15 to $1.27. Source
• Full-year net sales range raised: Full-year net sales now $5.40 billion to $5.48 billion, up from $5.20 billion to $5.30 billion; comparable sales now 6% to 8%, up from 3% to 5%. Source
• Full-year EPS range raised: Full-year diluted EPS now $8.62 to $9.02, up from $7.69 to $8.20. Full-year net income now $480 million to $502 million, up from $429 million to $457 million. Source

“We are thrilled with our outstanding first quarter performance, which is a testament to the team’s execution of our customer-centric strategy.”

Winnie Park, CEO of Five Below

Guidance

What changed from last quarter

• Guidance raised: Full-year net sales, comparable sales, net income and diluted EPS ranges were raised from the March release. Source
• New guidance: Second-quarter fiscal 2026 ranges were given for net sales, comparable sales, net income and diluted EPS; the March release gave only first-quarter and full-year ranges. Source
• Guidance kept: Full-year gross capital expenditure range of $230 million to $250 million and about 150 net new stores were kept from the March release. Source
• New: Guidance now excludes tariff refunds and share repurchases, if any; the March release excluded only share repurchases and assumed tariffs in place at the start of the year. Source

Quarterly results and growth

• Net sales and comparable sales rose: Net sales were $1,285.6 million, up 32.5% from $970.5 million a year earlier. Comparable sales rose 22.7%. Source
• Diluted EPS rose to $2.21: Diluted EPS was $2.21 against $0.75; adjusted diluted EPS was $2.22 against $0.86 in the first quarter of fiscal 2025. Source
• Operating income rose to $154.2 million: Operating income was $154.2 million against $50.8 million; adjusted operating income was $154.8 million against $59.6 million. Source
• Net income rose to $123.1 million: Net income was $123.1 million against $41.1 million; adjusted net income was $123.5 million against $47.5 million. Source
• Results compared with prior first-quarter guidance: The March release gave first-quarter net sales of $1.18 billion to $1.20 billion, about 45 net new stores, and comparable sales growth of approximately 14% to 16%.

Merchandise and customer growth

• Growth broad across customer groups: Management said growth was broad-based across merchandising worlds, new and existing customers, and all demographic and geographic segments. Source
• Social trends and marketing drove traffic: Management said it amplified social media trends and drove traffic through coordinated merchandising and marketing. No traffic figure was given. Source
• Most items priced from $1 to $5: Most items are priced between $1 and $5, with some extreme value items priced above $5, according to the company description. Source

“We successfully amplified social media trends and drove outsized traffic through coordinated merchandising and marketing efforts.”

Winnie Park, CEO of Five Below

Store base and reach

• 49 net new stores opened: The company opened 49 net new stores and ended the quarter with 1,970 stores in 46 states. Source
• Store count up 7.9% year over year: Store count rose 7.9% from the end of the first quarter of fiscal 2025. Source
• Full-year opening pace kept at 150: Full-year guidance keeps the opening pace at about 150 net new stores, the same figure as in the March release. Source

Costs, margins and tax

• Gross profit rose with sales: Gross profit was $478.6 million against $323.9 million. The company defines it as net sales less cost of goods sold. Source
• Cost of goods and SG&A increased: Cost of goods sold was $807.0 million against $646.6 million. Selling, general and administrative expenses were $273.3 million against $226.5 million. Source
• Effective tax rate fell: The effective tax rate was 24.3%, against 27.2% a year earlier. Source

“Our teams have demonstrated focus, discipline and agility in navigating macroeconomic uncertainty and we are committed to delivering amazing product at great value.”

Winnie Park, CEO of Five Below

Guidance and second-quarter expectations

• Second-quarter ranges first given: Second-quarter net sales of $1.18 billion to $1.20 billion, comparable sales up 7% to 9%, net income of $64 million to $71 million, and diluted EPS of $1.15 to $1.27. Source
• Full-year net sales range raised: Full-year net sales now $5.40 billion to $5.48 billion, up from $5.20 billion to $5.30 billion; comparable sales now 6% to 8%, up from 3% to 5%. Source
• Full-year EPS range raised: Full-year diluted EPS now $8.62 to $9.02, up from $7.69 to $8.20. Full-year net income now $480 million to $502 million, up from $429 million to $457 million. Source
• Tariff assumption through July 24: Guidance includes tariff rates in place through July 24, 2026, and assumes tariffs revert to start-of-year rates after that date. Source

Cash, inventory and capital

• Cash and short-term investments: Cash and equivalents were $638.9 million and short-term investments $474.4 million at May 2, 2026, against $723.7 million and $208.5 million at January 31, 2026. Source
• Inventory higher than a year ago: Inventories were $813.3 million at May 2, 2026, against $846.6 million at January 31, 2026 and $702.1 million a year earlier. Source
• Operating cash flow increased: Net cash provided by operating activities was $227.2 million, against $132.7 million a year earlier. Source
• Capital expenditures in the quarter: Capital expenditures were $37.2 million in the quarter, against $36.2 million a year earlier. Source

Strategy and leadership commentary

• Brand value proposition as destination: Management said the brand value proposition positions Five Below as THE destination for the KID and the KID in all of us, supporting durable growth. Source
• Newness and value at the core: Management called compelling newness at amazing value and great store execution the heart of its operating flywheel. Source
• Retention award expense declined: Adjusted results exclude retention award expense of $0.5 million this quarter, against $2.9 million a year earlier. The awards vest through fiscal 2026. Source
• Management cites macroeconomic uncertainty: Management said its teams are navigating macroeconomic uncertainty and remain committed to delivering amazing product at great value. Source

Coming up, as management said on 3 June 2026

• Tariff assumption after July 24, 2026: Guidance assumes tariffs revert to rates in place at the start of the fiscal year after July 24, 2026. Source

Figures management reported

Risks management discussed

• External: Management cites macroeconomic uncertainty as an environment it is navigating. Source
• Regulatory: Guidance depends on tariff rates in place through July 24, 2026; rates after that date are assumed to revert to start-of-year levels. Source

Earlier plans management reported on

• Not stated: Management says it is committed to delivering amazing product at great value. Source
• Not stated: The March release gave first-quarter and full-year ranges. This release reports first-quarter results against them and does not state whether they were met.

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.