Five Below Q2 sales beat estimates on strong comparable growth; raises annual outlook

Five Below

02/09/2026 21:11

Overview
U.S. discount retailer's Q2 sales rose 23% yr/yr, beating analyst expectations
Q2 adjusted EPS increased to $1.68; comparable sales up 14% yr/yr
Company authorized new $600 mln share repurchase program

Outlook
Five Below raises full-year 2026 net sales outlook to $5.63 bln-$5.71 bln from $5.40 bln-$5.48 bln
Company now expects full-year comparable sales growth of 10%-12%, up from 6%-8% previously
Five Below peroraises 2026 adjusted EPS outlook to $9.83-$10.31 from $8.65-$9.05

Result Drivers
STORE EXPANSION - Co opened 52 net new stores, increasing total store count by 8.8% yr/yr, contributing to sales growth
COMPARABLE SALES GROWTH - Co reported 14.1% yr/yr increase in comparable sales, supporting overall revenue growth
TREND-FOCUSED ASSORTMENT - CEO said performance was driven by trend-right product stories at value pricing and a customer-centric strategy

Company press release: ID:nGNX3yDR5Q

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.26 bln
$1.22 bln (19 Analysts)
Q2 Adjusted EPS
 
$1.68
 
Q2 EPS
 
$3.99
 
Q2 Net Income
 
$221.40 mln
 
Q2 Pretax Profit
Beat
$290.77 mln
$101.22 mln (17 Analysts)
Q2 Operating Income
 
$275.35 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "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 $265.00, about 8.1% above its September 1 closing price of $245.08
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 27 three months ago

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Aug 31 - GameStop expects lower quarterly sales on store closures, France exit

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.)