Five Below Inc
F:6F1
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F
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Five Below Inc
F:6F1
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Five Below Inc
Five Below is a discount specialty retailer that sells low-priced merchandise aimed mainly at kids, teens, and value-conscious families. Its stores carry items like candy, toys, accessories, beauty products, room decor, tech gadgets, school supplies, and seasonal goods, with most products chosen to feel fun, trendy, and impulse-friendly rather than basic or branded. The company makes money the simple retail way: it buys merchandise from suppliers and sells it in its stores at marked-up prices. Its business depends on moving a steady flow of small-ticket items, so it focuses on fast-changing product assortments, eye-catching store displays, and a shopping experience that encourages customers to browse and buy on the spot. What makes Five Below different is its clear role as a value-focused destination for discretionary purchases, especially for younger shoppers. Instead of trying to compete with full-line general retailers, it leans into a narrow price-sensitive niche and a treasure-hunt style store format that can turn ordinary everyday items into an impulse shopping trip.
Five Below is a discount specialty retailer that sells low-priced merchandise aimed mainly at kids, teens, and value-conscious families. Its stores carry items like candy, toys, accessories, beauty products, room decor, tech gadgets, school supplies, and seasonal goods, with most products chosen to feel fun, trendy, and impulse-friendly rather than basic or branded.
The company makes money the simple retail way: it buys merchandise from suppliers and sells it in its stores at marked-up prices. Its business depends on moving a steady flow of small-ticket items, so it focuses on fast-changing product assortments, eye-catching store displays, and a shopping experience that encourages customers to browse and buy on the spot.
What makes Five Below different is its clear role as a value-focused destination for discretionary purchases, especially for younger shoppers. Instead of trying to compete with full-line general retailers, it leans into a narrow price-sensitive niche and a treasure-hunt style store format that can turn ordinary everyday items into an impulse shopping trip.
Sales: FY2025 sales of $4.8 billion, up 23% year-over-year; Q4 sales of $1.7 billion, up 24% with a 15.4% comp.
Profitability: FY2025 adjusted operating margin ~10% (up 70 bps) and adjusted EPS $6.67 (up 32%); Q4 adjusted EPS $4.31.
Strategy: Management attributes momentum to a new customer-centric go-to-market (6 curtain-up moments), heavier social/creator marketing, better in‑store execution and curated product newness.
Guidance: FY2026 sales $5.2B–$5.3B (midpoint +10%); comp guidance 3%–5% (about 17% on a 2-year stack); adjusted EPS $8 at midpoint and operating margin 10.9% at midpoint.
Inventory & stores: Ended FY25 with 1,921 stores (150 net new in 2025), inventory ~$847 million (up 28%); FY26 plans for ~150 net new stores and CapEx $230M–$250M.
Tariffs & margins: Q4 gross margin pressure included ~160 bps of transitory tariff costs; FY25 tariff headwind about 90 bps and FY26 guidance assumes current tariff levels remain in place.
Q1 outlook: Q1 sales $1.18B–$1.20B (midpoint +23%) with comps 14%–16%; Q1 adjusted EPS $1.63 at midpoint and adjusted operating margin ~9.7%.
