Five Below Q1 sales top expectations; tariff uncertainty clouds outlook

Five Below

03/06/2026 21:14

Overview
U.S. discount retailer's Q1 net sales rose 32.5%, beating analyst expectations
Q1 pretax profit beat analyst expectations
Company opened 49 net new stores and raised full-year sales outlook

Outlook
Five Below expects Q2 net sales of $1.18 bln to $1.20 bln
Company sees FY 2026 net sales of $5.40 bln to $5.48 bln
Five Below assumes tariffs revert to prior rates after July 24, 2026 in outlook

Result Drivers
STORE EXPANSION - Opened 49 net new stores, contributing to sales growth
BROAD-BASED SALES GROWTH - Saw growth across merchandising categories, customer segments, and geographies, per CEO Winnie Park
MARKETING AND MERCHANDISING - Coordinated merchandising and marketing efforts amplified social media trends and drove higher store traffic, according to CEO Winnie Park

Company press release: ID:nGNXbrT5sb

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.29 bln
$1.23 bln (18 Analysts)
Q1 Adjusted EPS
 
$2.22
 
Q1 EPS
 
$2.21
 
Q1 Net Income
 
$123.06 mln
 
Q1 Pretax Profit
Beat
$162.50 mln
$131.74 mln (16 Analysts)
Q1 Operating Income
 
$154.24 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Five Below Inc is $260.00, about 18% above its June 2 closing price of $220.37
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 32 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)