Five Below Q1 EPS $2.22 Beats, Raises 2026 Outlook After 49 New Stores
FIVE•Five Below reported Q1 adjusted EPS of $2.22, beating the $1.69 consensus, and delivered 32.5% revenue growth to $1.29 billion with comparable sales up 22.7%. The retailer opened 49 net new stores to reach 1,970 locations and raised fiscal 2026 guidance to $8.65–$9.05 EPS on $5.40–$5.48 billion revenue.
1. Q1 Financial Performance
Five Below delivered adjusted EPS of $2.22, surpassing the $1.69 consensus, and reported revenue of $1.29 billion, up 32.5% year-over-year. Comparable sales increased 22.7%, driven by broad-based demand across categories and customer segments.
2. Profitability and Store Expansion
Operating income rose to $154.2 million from $50.8 million a year earlier, reflecting higher sales volumes and improved operating leverage. The retailer opened 49 net new stores during the quarter, ending with 1,970 locations, an 8% increase year-over-year.
3. Raised Fiscal 2026 Guidance
The company raised its full-year adjusted EPS outlook to $8.65–$9.05 and revenue forecast to $5.40–$5.48 billion, planning approximately 150 net new store openings and 6%–8% comparable sales growth. Second-quarter guidance calls for EPS of $1.17–$1.29 and revenue of $1.18–$1.20 billion, assuming enacted tariff rates through July 2026.
4. Market Reaction and Analyst Debate
Shares fell around 12% in premarket trading despite the beat and raise, as investors question the sustainability of exceptional growth. Analysts are debating whether the strong first-quarter momentum can be maintained throughout the year given economic uncertainties and rising competition.
