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Five Below, Inc. Announces Third Quarter Fiscal 2025 Financial Results

Q3 Net Sales Increase of 23.1% to $1.0 Billion; Comparable Sales Increase of 14.3%

Q3 GAAP Diluted EPS of $0.66, Q3 Adjusted Diluted EPS of $0.68

Increases Full Year 2025 Sales and EPS Outlook

PHILADELPHIA, PA – (December 3, 2025) – Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the third quarter and year to date period ended November 1, 2025.

For the third quarter ended November 1, 2025:

•Net sales increased by 23.1% to $1,038.3 million from $843.7 million in the third quarter of fiscal 2024; comparable sales increased by 14.3%.

•The Company opened 49 net new stores and ended the quarter with 1,907 stores in 44 states. This represents an increase in stores of 9.0% from the end of the third quarter of fiscal 2024.

•Operating income was $43.3 million compared to an operating loss of $0.6 million in the third quarter of fiscal 2024. Adjusted operating income(1) was $45.1 million compared to $27.6 million in the third quarter of fiscal 2024.

•The effective tax rate was 25.7% compared to 23.4% in the third quarter of fiscal 2024.

•Net income was $36.5 million compared to $1.7 million in the third quarter of fiscal 2024. Adjusted net income(1) was $37.8 million compared to $23.3 million in the third quarter of fiscal 2024.

•Diluted income per common share was $0.66 compared to $0.03 in the third quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.68 compared to $0.42 in the third quarter of fiscal 2024.

(1) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”

Winnie Park, CEO of Five Below, said, "We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth. This outstanding performance reflects our Crew's great execution of our customer-centric strategy: delivering trend-right merchandise at exceptional value, connecting with our customers through compelling marketing campaigns, and creating amazing shopping experiences that truly resonate.”

Ms. Park continued, “We are raising our guidance for fiscal 2025 to reflect these strong third quarter results and our current outlook for the fourth quarter. Our dedicated teams are collaborating across the company and delivering excellent end-to-end execution, in service of our customer, the KID and the KID in all of us. As we head into the holiday season, we are well-positioned to delight our customers with unique gifts and stocking stuffers at incredible value in a fun shopping environment.”

For the year to date period ended November 1, 2025:

•Net sales increased by 22.1% to $3.04 billion from $2.49 billion in the year to date period of fiscal 2024; comparable sales increased by 11.3%.

•The Company opened 136 net new stores compared to 205 new stores in the year to date period of fiscal 2024.

•Operating income was $146.5 million compared to $77.1 million in the year to date period of fiscal 2024. Adjusted operating income(2) was $159.8 million compared to $102.8 million in the year to date period of fiscal 2024.

•The effective tax rate was 26.4% compared to 24.7% in the year to date period of fiscal 2024.

•Net income was $120.4 million compared to $66.2 million in the year to date period of fiscal 2024. Adjusted net income(2) was $130.2 million compared to $85.5 million in the year to date period of fiscal 2024.

•Diluted income per common share was $2.17 compared to $1.20 in the year to date period of fiscal 2024. Adjusted diluted income per common share(2) was $2.35 compared to $1.55 in the year to date period of fiscal 2024.

(2) A reconciliation of adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with generally accepted accounting principles in the United States ("GAAP") is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”

Fourth Quarter and Fiscal 2025 Outlook:

The Company expects the following results for the fourth quarter and full year of fiscal 2025. This outlook includes the expected impact of tariffs currently in place.

For the fourth quarter of Fiscal 2025:

•Net sales are expected to be in the range of $1.58 billion to $1.61 billion based on opening approximately 14 net new stores and assumes an approximate 6% to 8% increase in comparable sales.

•Net income is expected to be in the range of $186 million to $196 million. Adjusted net income(3) is expected to be in the range of $187 million to $197 million.

•Diluted income per common share is expected to be in the range of $3.34 to $3.52 on approximately 55.6 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $3.36 to $3.54.

•This outlook does not include the impact of share repurchases, if any.

(3) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, net of income tax impacts.

For the full year of Fiscal 2025:

•Net sales are expected to be in the range of $4.62 billion to $4.65 billion based on opening approximately 150 net new stores and assumes an approximate 9.4% to 10.1% increase in comparable sales.

•Net income is expected to be in the range of $306 million to $316 million. Adjusted net income(4) is expected to be in the range of $317 million to $327 million.

•Diluted income per common share is expected to be in the range of $5.51 to $5.69 on approximately 55.5 million diluted weighted average shares outstanding. Adjusted diluted income per common share(4) is expected to be in the range of $5.71 to $5.89.

•Gross capital expenditures are expected to be approximately $200 million.

•This outlook does not include the impact of share repurchases, if any.

(4) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, costs associated with cost-optimization initiatives, execution of the inventory write-off, and costs incurred with the strategic acquisition of certain leases, net of income tax impacts.

Conference Call Information:

A conference call to discuss the financial results for the third quarter of fiscal 2025 is scheduled for today, December 3, 2025, at 4:30 p.m. Eastern Time. A live audio webcast of the conference call will be available online at investor.fivebelow.com, where a replay will be available shortly after the conclusion of the call. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 approximately 10 minutes prior to the start of the call.

Non-GAAP Information:

This press release includes the following non-GAAP financial measures: gross profit, adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures within this filing. The Company believes that these non-GAAP financial measures provide its management with comparable financial data for internal financial analysis and provide meaningful supplemental information to investors. Non-GAAP financial measures have limitations as analytical tools. Other companies in the Company's industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP.

Forward-Looking Statements:

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be protected by the “safe harbor” provisions therein. Such statements reflect management’s current views and estimates regarding the Company’s industry, business strategy, goals, expectations and outlook concerning its market position, operations, margins, profitability, capital expenditures, liquidity and capital resources, store count potential and other financial and operating information. Investors can identify these statements by the fact that they use words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future” and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Although we believe there is a reasonable basis for such forward-looking statements, our actual results may differ materially from these expectations due to risks that include, but are not limited to, risks related to disruption to the global supply chain, increased cost of freight, constraints on shipping capacity to transport inventory or the timely receipt of inventory, risks related to the Company’s strategy and expansion plans, risks related to our ability to attract, retain, and motivate qualified executive talent, risks related to disruptions in our information technology systems and our ability to maintain and upgrade those systems, risks related to our ability to successfully implement our online retail operations, risks related to cyberattacks or other cyber incidents, such as the failure to secure customers’ confidential or credit card information, or other private data relating to our crew or the Company, including the costs associated with protection against or remediation of such incidents, risks related to increased usage of machine learning and other types of artificial intelligence in our business, and challenges with properly managing its use, risks related to our ability to select, obtain, distribute and market merchandise profitably, risks related to our reliance on merchandise manufactured outside of the United States, including risks related to direct and indirect impact of current and potential tariffs imposed, threatened, or proposed by the United States on foreign imports, including, without limitation, the tariffs themselves, any counter-measures thereto (in addition to any applicable foreign trade restrictions, generally) and any indirect effects on consumer discretionary spending, risks related to the availability of suitable new store locations and the dependence on the volume of traffic to our stores and website, risks related to our dependence on our executive officers, senior management and other key personnel or our ability to hire additional qualified personnel, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, risks related to inflation and increasing commodity prices and related effects, such as a reduction in our unit sales (including an inability to increase sales), damage to our reputation with our customers, our becoming less competitive in the marketplace or exposure to fraud or theft due to customer payment-related risks, risks related to potential recessions and systematic failure of the banking system in the United States or globally, risks related to natural disasters, adverse weather conditions, pandemic outbreaks, global political events, war, terrorism or civil unrest (including any negative effects to our business and result of operations), risks related to building, operating or expanding shipcenters or network capacity, risks related to our ability to successfully manage inventory balance and inventory shrinkage, quality or safety concerns about the Company’s merchandise (including the impact of product and food safety claims and legislation), increased competition from other retailers including online retailers, risks related to the seasonality of our business, risks related to our ability to protect our brand name and other intellectual property, risks related to customers’ payment methods, risks associated with the restrictions imposed by our indebtedness on our current and future operations, the impact of changes in tax legislation and accounting standards, risks related to our insurance programs and their effect on our financial performance and risks associated with leasing substantial amounts of space and owning real property. For further details and a discussion of these risks and uncertainties, see the Company’s periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements, despite the Company’s reasonable basis for such statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,900 stores in 46 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.

Vice President, Investor Relations

InvestorRelations@fivebelow.com

Consolidated Balance Sheets


	November 1, 2025		February 1, 2025		November 2, 2024
Assets
Current assets:
Cash and cash equivalents	$	350,983	$	331,718	$	169,702
Short-term investment securities	173,515		197,073		46,941
Inventories	1,112,263		659,500		817,832
Prepaid income taxes and tax receivable	12,527		4,649		20,348

Prepaid expenses and other current assets	110,834		158,427		157,396
Total current assets	1,760,122		1,351,367		1,212,219
Property and equipment, net	1,252,212		1,261,728		1,259,768
Operating lease assets	1,743,865		1,706,542		1,692,978

Long-term investment securities	11,261		—		—
Other assets	21,858		19,937		20,354
	$	4,789,318	$	4,339,574	$	4,185,319

Liabilities and Shareholders’ Equity
Current liabilities:
Line of credit	$	—	$	—	$	—

Accounts payable	519,651		260,343		352,180
Income taxes payable	82		51,998		—
Accrued salaries and wages	57,583		19,743		28,758
Other accrued expenses	184,530		149,495		143,388

Operating lease liabilities	335,087		274,863		351,062
Total current liabilities	1,096,933		756,442		875,388

Other long-term liabilities	8,760		8,210		8,962
Long-term operating lease liabilities	1,679,106		1,706,704		1,616,964
Deferred income taxes	54,283		59,891		68,153
Total liabilities	2,839,082		2,531,247		2,569,467

Shareholders’ equity:
Common stock	550		549		549
Additional paid-in capital	173,964		152,471		147,453
Retained earnings	1,775,722		1,655,307		1,467,850
Total shareholders’ equity	1,950,236		1,808,327		1,615,852
	$	4,789,318	$	4,339,574	$	4,185,319

Consolidated Statements of Operations

(in thousands, except share and per share data)


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024		November 1, 2025		November 2, 2024
Net sales	$	1,038,293	$	843,710	$	3,035,667	$	2,485,642
Cost of goods sold (exclusive of items shown separately below)	686,873		585,668		2,017,965		1,692,294

Selling, general and administrative expenses	259,238		215,367		728,054		594,362
Depreciation and amortization	48,877		43,281		143,131		121,933
Operating income (loss)	43,305		(606)		146,517		77,053
Interest income and other income, net	5,813		2,808		17,000		10,852


Income before income taxes	49,118		2,202		163,517		87,905
Income tax expense	12,613		515		43,102		21,751
Net income	$	36,505	$	1,687	$	120,415	$	66,154




Basic income per common share	$	0.66	$	0.03	$	2.19	$	1.20
Diluted income per common share	$	0.66	$	0.03	$	2.17	$	1.20

Weighted average shares outstanding:
Basic shares	55,151,044		55,007,054		55,089,878		55,067,467
Diluted shares	55,570,844		55,110,433		55,383,515		55,152,976

Consolidated Statements of Cash Flows


	Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024
Operating activities:
Net income	$	120,415	$	66,154
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	143,131		121,933





Share-based compensation expense	26,172		11,303
Deferred income tax (benefit) expense	(5,608)		1,410
Other non-cash expenses	946		861

Changes in operating assets and liabilities:
Inventories	(452,763)		(233,205)

Prepaid income taxes and tax receivable	(7,878)		(15,514)

Prepaid expenses and other assets	45,564		(6,889)
Accounts payable	256,202		96,900
Income taxes payable	(51,916)		(41,772)
Accrued salaries and wages	37,840		(1,270)

Operating leases	(4,697)		45,914
Other accrued expenses	38,125		21,288
Net cash provided by operating activities	145,533		67,113
Investing activities:
Purchases of investment securities and other investments	(246,311)		(4,508)
Sales, maturities, and redemptions of investment securities	258,608		245,696
Capital expenditures	(133,960)		(271,855)
Net cash used in investing activities	(121,663)		(30,667)
Financing activities:




Net proceeds from issuance of common stock	477		600
Repurchase and retirement of common stock	—		(40,226)
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units	1		1
Common shares withheld for taxes	(5,083)		(6,868)



Net cash used in financing activities	(4,605)		(46,493)
Net increase (decrease) in cash and cash equivalents	19,265		(10,047)
Cash and cash equivalents at beginning of period	331,718		179,749
Cash and cash equivalents at end of period	$	350,983	$	169,702

GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations

(in thousands, except share and per share data)

Reconciliation of gross profit to adjusted gross profit


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024		November 1, 2025		November 2, 2024
Gross profit(5)	$	351,420	$	258,042	$	1,017,702	$	793,348
Adjustments:
Retention awards(6)	366		444		1,146		597
Cost-optimization initiatives(7)	—		378		4,100		378
Non-recurring lease acquisition costs(8)	—		—		495		—
Non-recurring inventory write-off	—		21,208		—		21,208
Adjusted gross profit(9)	$	351,786	$	280,072	$	1,023,443	$	815,531

Reconciliation of operating income, as reported, to adjusted operating income


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024		November 1, 2025		November 2, 2024
Operating income (loss), as reported	$	43,305	$	(606)	$	146,517	$	77,053
Adjustments:
Retention awards(6)	1,770		4,931		6,967		6,578
Cost-optimization initiatives(7)	—		1,544		4,960		1,544
Non-recurring lease acquisition costs(8)	—		—		495		—
Non-recurring inventory write-off	—		21,208		830		21,208
Non-recurring employment-related litigation	—		—		—		1,976
Non-recurring stock compensation benefit	—		—		—		(6,116)
Non-recurring asset disposal	—		513		—		513
Adjusted operating income(9)	$	45,075	$	27,590	$	159,769	$	102,756

Reconciliation of net income, as reported, to adjusted net income


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024		November 1, 2025		November 2, 2024
Net income, as reported	$	36,505	$	1,687	$	120,415	$	66,154
Adjustments:
Retention awards, net of tax(6)	1,315		3,778		5,130		4,950
Cost-optimization initiatives, net of tax(7)	—		1,183		3,652		1,162
Non-recurring lease acquisition costs, net of tax(8)	—		—		364		—
Non-recurring inventory write-off, net of tax	—		16,248		612		15,961
Non-recurring employment-related litigation, net of tax	—		—		—		1,487
Non-recurring stock compensation benefit, net of tax	—		—		—		(4,603)
Non-recurring asset disposal, net of tax	—		393		—		386
Adjusted net income(9)	$	37,820	$	23,289	$	130,173	$	85,497

Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 1, 2025		November 2, 2024		November 1, 2025		November 2, 2024
Diluted income per common share, as reported	$	0.66	$	0.03	$	2.17	$	1.20
Adjustments:
Retention awards per share(6)	0.02		0.07		0.09		0.09
Cost-optimization initiatives per share(7)	—		0.02		0.07		0.02
Non-recurring lease acquisition costs per share(8)	—		—		0.01		—
Non-recurring inventory write-off per share	—		0.29		0.01		0.29
Non-recurring employment related litigation per share	—		—		—		0.03
Non-recurring stock compensation benefit per share	—		—		—		(0.08)
Non-recurring asset disposal per share	—		0.01		—		0.01
Adjusted diluted income per common share(9)	$	0.68	$	0.42	$	2.35	$	1.55

(5) Gross profit is equal to our net sales less our cost of goods sold.

(6) Retention awards relate to the on-going expense recognition of equity granted to certain individuals in fiscal 2024 during the CEO transition that will be earned and have vestings through fiscal 2026.

(7) Represents charges related to the cost-optimization of certain functions.

(8) Represents non-recurring costs incurred with the strategic acquisition of certain leases.

(9) Components may not add to total due to rounding.