Five Below, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 2 September 2026: press release. Guidance figures: 7 raised, 1 lowered, 6 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Sales up 22.9%, comparable sales up 14.1%: Net sales were $1.26 billion against $1.03 billion a year earlier. The release reports comparable sales up 14.1% for the quarter. Source
• Adjusted EPS $1.68 against $0.81: GAAP diluted EPS was $3.99 against $0.77. The gap to adjusted EPS reflects IEEPA tariff refunds, net of tax, which the adjusted figure excludes. Source
• 52 net new stores, 2,022 in total: The company ended the quarter with 2,022 stores in 46 states, an increase of 8.8% from the end of the second quarter of fiscal 2025. Source
• IEEPA refunds lifted gross profit: Gross profit was $612.4 million, including $163.6 million of IEEPA tariff refunds. Adjusted gross profit, excluding the refunds and retention awards, was $449.1 million. Source
• New $600 million buyback authorized: The board approved a program for up to $600 million of common stock on August 29, 2026. The program has no fixed expiration date. Source
• Full-year sales and comparable sales raised: Full-year net sales guidance is $5.63 billion to $5.71 billion, up from $5.40 billion to $5.48 billion. Comparable sales guidance is +10% to +12%, up from +6% to +8%. Source
• Full-year EPS guidance raised: Full-year diluted EPS guidance is $12.10 to $12.58, up from $8.62 to $9.02. Adjusted diluted EPS guidance is $9.83 to $10.31, up from $8.65 to $9.05. Source

“We are thrilled with our second quarter performance and the continued momentum 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 EPS guidance raised against the first-quarter release. Source
• New guidance: Third-quarter guidance given for net sales, net new stores, comparable sales, net income and diluted EPS. Source
• Guidance kept: Full-year net new store guidance kept at approximately 150. Source
• Guidance lowered: Full-year diluted weighted average share count guidance lowered to 55.5 million from 55.7 million. Source
• Guidance raised: Full-year gross capital expenditure guidance raised to $250 million to $260 million. Source
• New: Guidance now assumes tariff rates currently in place and excludes future tariff refunds. The first-quarter release assumed tariffs revert after July 24, 2026. Source
• New: Board approved a new share repurchase program of up to $600 million of common stock on August 29, 2026. Source
• Ended: New program replaces and supersedes remaining capacity under the prior program authorized November 27, 2023. Source

Second-quarter results

• Sales up 22.9%, comparable sales up 14.1%: Net sales were $1.26 billion against $1.03 billion a year earlier. The release reports comparable sales up 14.1% for the quarter. Source
• Adjusted EPS $1.68 against $0.81: GAAP diluted EPS was $3.99 against $0.77. The gap to adjusted EPS reflects IEEPA tariff refunds, net of tax, which the adjusted figure excludes. Source
• Net income rose to $221.4 million: Net income was $221.4 million against $42.8 million. The effective tax rate was 23.9% against 26.2% in the prior-year quarter. Source

Store openings and footprint

• 52 net new stores, 2,022 in total: The company ended the quarter with 2,022 stores in 46 states, an increase of 8.8% from the end of the second quarter of fiscal 2025. Source
• Year-to-date openings reached 101: Year to date, 101 net new stores opened, compared with 87 in the prior-year period. Full-year net new store guidance is approximately 150. Source
• Crew brings stores to new communities: Management said the Crew drives new store growth at a higher level of executional excellence, bringing Five Below to new communities. Source

“The balance between new store growth and double-digit comparable sales growth for the past five quarters is a testament to our operating flywheel gaining momentum.”

Winnie Park, CEO of Five Below

Gross profit and tariff refunds

• IEEPA refunds lifted gross profit: Gross profit was $612.4 million, including $163.6 million of IEEPA tariff refunds. Adjusted gross profit, excluding the refunds and retention awards, was $449.1 million. Source
• Cost of goods sold fell year on year: Cost of goods sold was $649.1 million compared with $684.5 million in the second quarter of fiscal 2025, while net sales rose 22.9%. Source
• Selling and administrative costs rose: Selling, general and administrative expenses were $285.9 million against $242.3 million. Depreciation and amortization was $51.2 million against $47.7 million. Source

Operating and adjusted earnings

• GAAP operating income includes refunds: Operating income was $275.4 million. Adjusted operating income, which excludes the IEEPA refund, was $113.2 million against $55.1 million. Source
• Adjusted net income $93.4 million: Adjusted net income was $93.4 million against $44.8 million. GAAP net income includes IEEPA tariff refunds and related interest, net of tax, of $129.1 million. Source
• Interest and other income rose: Interest income and other income, net was $15.4 million compared with $5.5 million a year earlier. Source

“We remain maniacally focused on delivering our brand promise to be THE destination for the KID and the KID in all of us.”

Winnie Park, CEO of Five Below

Year-to-date results

• Year-to-date sales up 27.5%: Year-to-date net sales were $2.55 billion, up from $2.00 billion, with year-to-date comparable sales up 18.3%. Source
• Year-to-date operating income $429.6 million: Year-to-date operating income was $429.6 million against $103.2 million. Year-to-date diluted EPS was $6.20 against $1.52. Source
• Year-to-date tax rate 24.0%: The year-to-date effective tax rate was 24.0% against 26.7%. Year-to-date net income was $344.5 million against $83.9 million. Source

Inventory, cash and cash flow

• Inventory rose to $941.2 million: Inventories were $941.2 million at August 1, 2026, against $799.6 million at August 2, 2025 and $846.6 million at January 31, 2026. Source
• Cash and short-term investments reported: Cash and cash equivalents were $561.1 million and short-term investment securities were $626.8 million at the end of the quarter. Source
• Operating cash flow and capex year to date: Net cash provided by operating activities was $442.7 million year to date, against $225.7 million. Capital expenditures were $110.4 million against $80.9 million. Source

Share repurchases and authorization

• New $600 million buyback authorized: The board approved a program for up to $600 million of common stock on August 29, 2026. The program has no fixed expiration date. Source
• Second-quarter buybacks of about $60 million: The company repurchased approximately 311,000 shares in the second quarter at a cost of approximately $60.0 million. Year-to-date repurchases were $60.4 million in cash. Source
• Prior program capacity superseded: The new program replaces and supersedes the remaining capacity under the program authorized on November 27, 2023. Source

Strategy, Crew and retention

• Newness and store execution at core: The prior release said newness at amazing value and great store execution are at the heart of the operating flywheel.
• Social trends drove outsized traffic: The prior release said the company amplified social media trends and drove outsized traffic through coordinated merchandising and marketing efforts.
• Retention awards run through August 2026: Retention awards from the fiscal 2024 CEO transition were earned and vested through August 2026, as the release describes. Source

Guidance raised for fiscal 2026

• Full-year sales and comparable sales raised: Full-year net sales guidance is $5.63 billion to $5.71 billion, up from $5.40 billion to $5.48 billion. Comparable sales guidance is +10% to +12%, up from +6% to +8%. Source
• Full-year EPS guidance raised: Full-year diluted EPS guidance is $12.10 to $12.58, up from $8.62 to $9.02. Adjusted diluted EPS guidance is $9.83 to $10.31, up from $8.65 to $9.05. Source
• Third-quarter guidance given: Third-quarter net sales are expected at $1.21 billion to $1.23 billion, comparable sales at +8% to +10%, and diluted EPS at $1.01 to $1.13. Source
• Tariff assumption now current rates: Guidance includes tariff rates currently in place and excludes future tariff refunds and share repurchases. The first-quarter release assumed tariffs revert after July 24, 2026. Source
• Capital expenditure guidance raised: Gross capital expenditures are now expected at $250 million to $260 million, against $230 million to $250 million previously. Source

Coming up, as management said on 2 September 2026

• Holiday season and beyond: Management said it looks forward to delivering special curtain up moments for customers through the holiday season and beyond. Source
• Open-ended buyback program: The new repurchase program has no fixed expiration date and remains in effect until the authorized stock is acquired or the program is replaced, suspended or terminated. Source

Figures management reported

Risks management discussed

• Regulatory: Tariff rates are an input to guidance. Guidance assumes rates currently in place and excludes future tariff refunds, so tariff changes affect the expected results. Source

Earlier plans management reported on

• Not stated: The first-quarter release said management is committed to delivering amazing product at great value.
• Not stated: The first-quarter release gave a second-quarter net sales range of $1.18 billion to $1.20 billion. The second-quarter release reports net sales of $1.26 billion.
• Not stated: The first-quarter release said the retention awards would be earned and vest through fiscal 2026. The second-quarter release says they were earned and vested through August 2026.

Other quarters

• Q1 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.