Five Below stock surged by 79% over the course of 2025, far exceeding both the author’s original 50% forecast and the S&P 500’s 16% gain. The company’s turnaround followed a difficult 2024, driven by a 12.5% increase in same-store sales and expansion of gross margin by 180 basis points. New CEO Winnie Park’s strategic decision to discontinue the underperforming Five Beyond section while maintaining selective higher-priced items throughout the store unlocked pricing power and improved operating margin by 120 basis points year-over-year. Management ended the year with 1,620 open stores, up from 1,480 at the start of 2025, and announced plans for 180 net new openings in 2026, underscoring confidence in the company’s growth runway.

In the third quarter, GatePass Capital LLC initiated a position in Five Below by acquiring 5,002 shares valued at approximately $774,000, signaling fresh institutional interest. Eastern Bank ramped up its position by 705%, purchasing an additional 141 shares to reach a total of 161. IFP Advisors boosted its holding by nearly 654%, adding 170 shares for a total of 196, while Mather Group LLC entered with a new stake worth about $40,000. SJS Investment Consulting posted the most dramatic increase, lifting its stake by 15,500% to 312 shares. Collectively, these moves reflect growing confidence in Five Below’s robust same-store sales momentum and the company’s raised full-year guidance for fiscal 2025, which calls for EPS between 5.71 and 5.89 and revenue growth above prior forecasts.