Five Below (FIVE) Q2 2027 earnings summary

Executive summary

• Net sales for Q2 2026 rose 22.9% year-over-year to $1.26 billion, driven by a 14.1% increase in comparable sales and new store openings.

• Net income for Q2 was $221.4 million, primarily due to a $169.5 million pre-tax benefit from IEEPA tariff refunds; adjusted net income was $93.4 million.

• Leadership team completed with new Chief Retail and Legal Officers; continued focus on customer-centric strategy and operational enhancements.

• Celebrated opening of 2,000th store and entry into 47th state; plans to expand into Puerto Rico in 2027.

• Operating income for Q2 was $275.4 million; adjusted operating income was $113.2 million, reflecting significant non-recurring items.

Financial highlights

• Net sales for the twenty-six weeks ended August 1, 2026, increased 27.5% to $2.55 billion year-over-year.

• Q2 GAAP diluted EPS was $3.99; adjusted diluted EPS was $1.68, up from $0.81 in Q2 2025.

• Gross margin for Q2 was 48.5%, up from 33.3% year-over-year; adjusted gross profit was $449.1 million after accounting for significant IEEPA tariff refunds.

• Operating margin for Q2 was 21.8% (GAAP), adjusted operating margin was 9.0%.

• Cash provided by operating activities for the half-year was $442.7 million, up $217 million year-over-year.

Outlook and guidance

• Raised full-year 2026 net sales outlook to $5.63–$5.71 billion, up from prior $5.40–$5.48 billion; comparable sales growth now expected at 10–12%.

• Full-year adjusted net income guidance increased to $546–$572 million; adjusted diluted EPS to $9.83–$10.31.

• Q3 2026 net sales expected at $1.21–$1.23 billion, with comparable sales growth of 8–10% and 40 net new store openings.

• CapEx forecasted at $250–$260 million, reflecting investments in new stores and store experience.

• Management expects cash position, operating cash flow, and credit facility to be sufficient for planned investments and working capital needs over the next 12 months.