Five Below Reports Strong Q2 Earnings with Double-Digit Sales Growth
Five Below (FIVE) reported strong second-quarter results for fiscal year 2027 on September 2, 2026. The company achieved net sales of $1.26 billion, a 22.9% increase from the prior year driven by new store openings and higher comparable sales growth of 14.1%. Adjusted diluted earnings per share (EPS) more than doubled to $1.68 compared to $0.81 in Q2 2025. The company's operating margin expanded significantly, reaching 9% with adjusted gross margins at 35.6%, up by 220 basis points year over year due to merchandise and cost efficiencies. Five Below also announced a new share repurchase authorization of $600 million and raised its full-year sales guidance from $5.4 billion to between $5.63 billion and $5.71 billion. Looking ahead, management expects continued growth with Q3 2026 comparable sales projected at 8%–10%. The company plans to expand into Puerto Rico in the second half of 2027 and anticipates opening around 150 new stores this year.
Tickers: $FIVE
Topics: financial_performance retail_sales_growth share_repurchase