Five Below (FIVE) investor relations material

Executive summary

• Q1 net sales grew 32.5% to $1.29 billion, with comparable sales up 22.7% and strong new store performance, exceeding expectations.

• Adjusted EPS rose to $2.22, more than doubling year-over-year, driven by broad-based growth across departments and customer cohorts.

• Net income surged 199.1% to $123.1 million, with diluted EPS at $2.21, up from $0.75 in the prior year period.

• Growth was fueled by curated product storytelling, enhanced social and digital marketing, and improved in-store experiences.

• The company is raising its full-year outlook due to positive momentum, despite a cautious macroeconomic environment.

Financial highlights

• Net sales increased 32.5% to $1.29 billion compared to Q1 last year.

• Adjusted gross profit rose to $478.6 million, with gross margin up 340–380 basis points to 37.2%.

• Adjusted operating income grew to $155 million; adjusted operating margin expanded to 12%.

• Adjusted net income increased to $123 million; adjusted EPS up to $2.22.

• Ended Q1 with $1.1 billion in cash equivalents and investments; inventory up 16% year-over-year.

Outlook and guidance

• Q2 sales expected between $1.18–$1.2 billion, up 16% at midpoint, with 7–9% comp growth.

• Q2 adjusted operating margin expected at 7%; adjusted net income forecasted at $68 million.

• Full-year sales guidance raised to $5.4–$5.48 billion, 14% growth at midpoint; comp sales growth of 6–8%.

• Full-year adjusted EPS expected at $8.85–$9.05, up 33% year-over-year.

• Capital expenditures projected at $230–$250 million for 150 net new stores and tech investments.