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Five Below Q3 Earnings Top Estimates, Comps Rise Y/Y, FY25 View Raised
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Key Takeaways
FIVE posts robust Q3 results as earnings, net sales and comparable sales all rise y/y.
Stronger traffic from digital marketing and market openings drives FIVE's momentum.
The FY25 guidance was lifted, with an EPS outlook of $5.51-$5.69 and sales forecast up to $4.65B.
Five Below, Inc. (FIVE - Free Report) reported impressive third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, net sales and earnings increased year over year. Comparable sales grew year over year. As a result, the company raised its fiscal 2025 outlook.
Five Below highlighted solid operational momentum in the fiscal third quarter, driven by stronger traffic from increased digital and creator-led marketing, continued expansion, including successful market openings, and improved in-store experience through better inventory flow and cross-functional coordination.
The company emphasized growing customer engagement with seasonal moments and broader merchandising that integrates products above $5 and more licensed offerings, all supporting its focus on serving younger shoppers and preparing for the holiday season.
Five Below, Inc. Price, Consensus and EPS Surprise
FIVE posted adjusted earnings per share of 68 cents in the fiscal third quarter, which beat the Zacks Consensus Estimate of 22 cents. Also, the figure surged 61.9% from 42 cents in the year-ago quarter.
Net sales of $1.04 billion increased 23.1% year over year. Also, this metric surpassed the Zacks Consensus Estimate of $970 million.
Comparable sales (comps) increased 14.3% year over year, driven by increases in transactions and ticket.
Insight Into Margins & Costs of FIVE
Adjusted gross profit grew 25.6% year over year to $351.8 million. We note that the adjusted gross margin increased approximately 70 basis points (bps) year over year to 33.9%, which beat our estimate of 31.9%. This is primarily reflecting fixed cost leverage and better shrink performance, partially offset by the remaining impacts of unmitigated tariffs.
Selling, general and administrative (SG&A) costs rose 20.4% to $259.2 million. SG&A costs, as a percentage of net sales, decreased approximately 50 bps to 25%. We estimated SG&A costs to rise 15.5% year over year for the quarter under review.
Adjusted operating income was $45.1 million compared with $27.6 million in the third quarter of fiscal 2024. The adjusted operating margin increased approximately 100 bps to 4.3%.
Five Below’s Financial Snapshot: Cash & Equity Overview
The company ended the fiscal third quarter with cash and cash equivalents of $351 million, and short-term investment securities of $173.5 million. Total shareholders’ equity was $1.95 billion as of Nov. 1, 2025.
FIVE Provides Q3 Store Update
The company opened 49 net new stores and ended the quarter with 1,907 stores across 44 states. This represents a 9% increase in the number of stores from the end of the third quarter of fiscal 2024.
The company plans to open 150 stores by the end of fiscal 2025, taking the total count to 1,921 stores.
What Lies in Q4 for Five Below?
For the fourth quarter of fiscal 2025, the company expects net sales of $1.58-$1.61 billion, indicating the opening of 14 net new stores, and a 6-8% increase in comparable sales, suggesting 14.7% year-over-year growth at the midpoint.
Net income for the fiscal fourth quarter is expected between $186 million and $196 million, while adjusted net income is expected between $187 million and $197 million. The company expects an adjusted operating margin of 15.8% at the mid-point, inclusive of higher incentive costs and the impacts of unmitigated tariffs.
Earnings per share are expected between $3.34 and $3.52, based on 55.6 million diluted weighted-average shares outstanding. Adjusted earnings per share are expected to be $3.36 to $3.54. This outlook does not reflect any potential impact of share repurchases.
FIVE Stock Past 3-Month Performance
Image Source: Zacks Investment Research
Five Below’s FY25 Outlook
The company updated its financial outlook for fiscal 2025, reflecting improved expectations in several key areas. Net sales are projected to be $4.62-$4.65 billion, an upward revision from the earlier stated $4.44-$4.52 billion. In fiscal 2024, the company reported net sales of $3.88 billion. This increase suggests stronger anticipated performance, supported by plans to open stores and an improved outlook for comparable sales growth of 9.4-10.1% compared with the prior-mentioned rise of 5-7%.
The adjusted operating margin is anticipated to be 8.9% at the mid-point. Net income is forecast between $306 million and $316 million, which marks an upward adjustment from the previously stated $253-$275 million. Adjusted net income is projected between $317 million and $327 million, significantly raised from the earlier guidance of $264-$286 million. Net income and adjusted net income were $253.6 million and $277.8 million, respectively, in fiscal 2024.
Earnings per share are expected to be $5.51-$5.69, up from the prior mentioned $4.56-$4.96 and suggesting a rise from the $4.60 reported in fiscal 2024. Adjusted earnings per share are likely to be $5.71-$5.89 compared with the previously mentioned $4.76-$5.16, whereas the company registered adjusted earnings of $5.04 in fiscal 2024.
FIVE anticipates a gross capital expenditure of $200 million. These investments will support store openings and ongoing upgrades to systems and infrastructure. Shares of this Zacks Rank #2 (Buy) company have gained 6.4% in the past three months against the industry’s 5.8% decline.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 400% and 7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial-year sales and earnings indicates a decline of 15.1% and growth of 19.9%, respectively, from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 18.5%.
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Five Below Q3 Earnings Top Estimates, Comps Rise Y/Y, FY25 View Raised
Key Takeaways
Five Below, Inc. (FIVE - Free Report) reported impressive third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, net sales and earnings increased year over year. Comparable sales grew year over year. As a result, the company raised its fiscal 2025 outlook.
Five Below highlighted solid operational momentum in the fiscal third quarter, driven by stronger traffic from increased digital and creator-led marketing, continued expansion, including successful market openings, and improved in-store experience through better inventory flow and cross-functional coordination.
The company emphasized growing customer engagement with seasonal moments and broader merchandising that integrates products above $5 and more licensed offerings, all supporting its focus on serving younger shoppers and preparing for the holiday season.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below, Inc. price-consensus-eps-surprise-chart | Five Below, Inc. Quote
More on Five Below’s Q3 Results
FIVE posted adjusted earnings per share of 68 cents in the fiscal third quarter, which beat the Zacks Consensus Estimate of 22 cents. Also, the figure surged 61.9% from 42 cents in the year-ago quarter.
Net sales of $1.04 billion increased 23.1% year over year. Also, this metric surpassed the Zacks Consensus Estimate of $970 million.
Comparable sales (comps) increased 14.3% year over year, driven by increases in transactions and ticket.
Insight Into Margins & Costs of FIVE
Adjusted gross profit grew 25.6% year over year to $351.8 million. We note that the adjusted gross margin increased approximately 70 basis points (bps) year over year to 33.9%, which beat our estimate of 31.9%. This is primarily reflecting fixed cost leverage and better shrink performance, partially offset by the remaining impacts of unmitigated tariffs.
Selling, general and administrative (SG&A) costs rose 20.4% to $259.2 million. SG&A costs, as a percentage of net sales, decreased approximately 50 bps to 25%. We estimated SG&A costs to rise 15.5% year over year for the quarter under review.
Adjusted operating income was $45.1 million compared with $27.6 million in the third quarter of fiscal 2024. The adjusted operating margin increased approximately 100 bps to 4.3%.
Five Below’s Financial Snapshot: Cash & Equity Overview
The company ended the fiscal third quarter with cash and cash equivalents of $351 million, and short-term investment securities of $173.5 million. Total shareholders’ equity was $1.95 billion as of Nov. 1, 2025.
FIVE Provides Q3 Store Update
The company opened 49 net new stores and ended the quarter with 1,907 stores across 44 states. This represents a 9% increase in the number of stores from the end of the third quarter of fiscal 2024.
The company plans to open 150 stores by the end of fiscal 2025, taking the total count to 1,921 stores.
What Lies in Q4 for Five Below?
For the fourth quarter of fiscal 2025, the company expects net sales of $1.58-$1.61 billion, indicating the opening of 14 net new stores, and a 6-8% increase in comparable sales, suggesting 14.7% year-over-year growth at the midpoint.
Net income for the fiscal fourth quarter is expected between $186 million and $196 million, while adjusted net income is expected between $187 million and $197 million. The company expects an adjusted operating margin of 15.8% at the mid-point, inclusive of higher incentive costs and the impacts of unmitigated tariffs.
Earnings per share are expected between $3.34 and $3.52, based on 55.6 million diluted weighted-average shares outstanding. Adjusted earnings per share are expected to be $3.36 to $3.54. This outlook does not reflect any potential impact of share repurchases.
FIVE Stock Past 3-Month Performance
Image Source: Zacks Investment Research
Five Below’s FY25 Outlook
The company updated its financial outlook for fiscal 2025, reflecting improved expectations in several key areas. Net sales are projected to be $4.62-$4.65 billion, an upward revision from the earlier stated $4.44-$4.52 billion. In fiscal 2024, the company reported net sales of $3.88 billion. This increase suggests stronger anticipated performance, supported by plans to open stores and an improved outlook for comparable sales growth of 9.4-10.1% compared with the prior-mentioned rise of 5-7%.
The adjusted operating margin is anticipated to be 8.9% at the mid-point. Net income is forecast between $306 million and $316 million, which marks an upward adjustment from the previously stated $253-$275 million. Adjusted net income is projected between $317 million and $327 million, significantly raised from the earlier guidance of $264-$286 million. Net income and adjusted net income were $253.6 million and $277.8 million, respectively, in fiscal 2024.
Earnings per share are expected to be $5.51-$5.69, up from the prior mentioned $4.56-$4.96 and suggesting a rise from the $4.60 reported in fiscal 2024. Adjusted earnings per share are likely to be $5.71-$5.89 compared with the previously mentioned $4.76-$5.16, whereas the company registered adjusted earnings of $5.04 in fiscal 2024.
FIVE anticipates a gross capital expenditure of $200 million. These investments will support store openings and ongoing upgrades to systems and infrastructure. Shares of this Zacks Rank #2 (Buy) company have gained 6.4% in the past three months against the industry’s 5.8% decline.
Other Key Picks
We have highlighted three other top-ranked stocks, namely, FIGS Inc. (FIGS - Free Report) , Boot Barn Holdings, Inc. (BOOT - Free Report) and Allbirds Inc. (BIRD - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 400% and 7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial-year sales and earnings indicates a decline of 15.1% and growth of 19.9%, respectively, from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 18.5%.