Five Below (FIVE) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 rose 23.1% year-over-year to $1.04 billion, with comparable sales up 14.3% and non-comparable sales driven by new store openings.

• Net income for Q3 was $36.5 million, up from $1.7 million last year, reflecting improved gross margin and sales growth.

• Adjusted diluted EPS for Q3 was $0.68, up 62% year-over-year.

• Opened 49 net new stores in Q3, ending with 1,907 locations, and saw record grand openings in new markets.

• Customer-centric strategy, enhanced marketing, and merchandising innovation fueled broad-based growth.

Financial highlights

• Q3 net sales increased 23.1% to $1.04 billion, with comparable sales up 14.3%.

• Q3 adjusted gross profit was $351.8 million, with gross margin up to 33.9%.

• Q3 adjusted operating income grew to $45.1 million, with operating margin up to 4.3%.

• Q3 adjusted net income was $37.8 million and adjusted EPS was $0.68, both up 62% year-over-year.

• Ended Q3 with $536 million in cash and $1.1 billion in inventory.

Outlook and guidance

• Q4 net sales expected at $1.58–$1.61 billion, with comparable sales growth of 6–8%.

• Q4 adjusted operating margin expected at 15.8% midpoint; adjusted net income forecasted at $192 million and EPS at $3.45.

• Full-year net sales forecasted at $4.62–$4.65 billion, with comparable sales growth of 9.4–10.1%.

• Full-year adjusted EPS expected between $5.71 and $5.89, with 150 net new store openings and $200 million in capital expenditures.

• Management believes cash and credit facility are sufficient to fund growth and capital needs.