Five Below Inc
Q2 2027 Earnings
GAAP EPS of $3.99 includes $2.33 per share after-tax benefit from IEEPA tariff refunds ($163.6 million pre-tax) and $0.02 per share in retention award costs
Market Reaction
Did FIVE Beat Earnings? Q2 2027 Results
Five Below posted a blowout second quarter for fiscal 2026, with adjusted diluted EPS of $1.68 beating the $1.36 consensus by 23.23%, extending the discount retailer's streak of consensus EPS beats to seven consecutive quarters. Net sales climbed 22.9% year over year to $1.26 billion, ahead of the $1.21 billion analyst estimate by 3.98%, powered by a 14.1% comparable sales increase and the addition of 52 net new stores, bringing the chain to 2,022 locations. The standout comparable sales performance reflects CEO Winnie Park's strategy of pairing trend-right merchandise with extreme-value pricing, a formula that has driven five straight quarters of double-digit comps. GAAP EPS of $3.99 was substantially amplified by a $2.33 per-share after-tax benefit from IEEPA tariff refunds, underscoring the importance of stripping out one-time items for a cleaner read. Analysts have grown increasingly confident in the name ahead of the print, with multiple price target upgrades reflecting strong card-spending data. Management raised full-year adjusted diluted EPS guidance to $9.83 to $10.31, up from the prior range of $8.65 to $9.05, citing sustained comparable-sales momentum and disciplined store expansion.
- 14.1% comparable sales increase in Q2
- 52 net new stores opened in Q2, bringing total to 2,022 stores in 46 states
- 8.8% year-over-year increase in store count
- Customer-centric strategy with trend-right product stories at extreme value
- $163.6 million in IEEPA tariff refunds received during the quarter
- Effective tax rate improved to 23.9% from 26.2%
- Five consecutive quarters of double-digit comparable sales growth
“We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy. Our Crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop. We remain maniacally focused on delivering our brand promise to be THE destination for the KID and the KID in all of us.”
Five Below CEO, on the earnings call
Forward Guidance & Outlook
For Q3 fiscal 2026, Five Below expects net sales of $1.21 billion to $1.23 billion, comparable sales growth of 8% to 10%, approximately 40 net new stores, net income of $56 million to $63 million, and diluted EPS of $1.01 to $1.13. For full year fiscal 2026, the company raised guidance: net sales of $5.63 billion to $5.71 billion (from $5.40-$5.48 billion), comparable sales growth of 10% to 12% (from 6%-8%), approximately 150 net new stores, GAAP net income of $672 million to $698 million, GAAP diluted EPS of $12.10 to $12.58, adjusted net income of $546 million to $572 million, adjusted diluted EPS of $9.83 to $10.31 (from $8.65-$9.05), and gross capital expenditures of $250 million to $260 million. Outlook includes the expected impact of tariff rates currently in place and excludes the impact of future tariff refunds and share repurchases.
FIVE YoY Financials
Figures from SEC filings and company reports. Not investment advice.