Five Below (NASDAQ:FIVE) Shares Gap Up on Strong Earnings

Five Below, Inc. (NASDAQ:FIVE) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $243.08, but opened at $257.00. Five Below shares last traded at $241.2220, with a volume of 363,693 shares changing hands.

The specialty retailer reported $1.68 EPS for the quarter, topping analysts’ consensus estimates of $1.40 by $0.28. The business had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Five Below had a net margin of 8.67% and a return on equity of 21.31%. The business’s quarterly revenue was up 22.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.81 EPS. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS.

Key Stories Impacting Five Below

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Earnings and sales beat expectations. Adjusted Q2 earnings per share reached $1.68, up from $0.81 a year earlier and above the roughly $1.40 consensus estimate. Revenue increased 22.9% to approximately $1.26 billion, exceeding expectations of about $1.22 billion. Five Below Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Comparable sales and store growth were robust. Comparable sales rose 14.1%, supported by traffic and demand for trendy merchandise. Five Below opened 52 net new stores during the quarter and ended the period with 2,022 locations, reinforcing its growth strategy. Five Below Strong Comparable Sales and Store Growth
• Positive Sentiment: Management raised its 2026 outlook. Full-year sales guidance increased to $5.63 billion-$5.71 billion from $5.40 billion-$5.48 billion, while adjusted EPS guidance was set at $9.83-$10.31. Third-quarter adjusted EPS guidance of $1.01-$1.13 also exceeded the prior consensus estimate of $0.86. Five Below Fiscal 2026 Outlook
• Positive Sentiment: A $600 million share-repurchase authorization could support per-share earnings and signal management confidence in the company’s cash-generation prospects. Five Below Share Repurchase Plan
• Neutral Sentiment: Analyst sentiment strengthened, with William Blair reaffirming a Buy rating and Bank of America raising its price target to $340, though the stock’s valuation remains elevated at approximately 31 times earnings.

Analyst Ratings Changes

FIVE has been the topic of a number of research analyst reports. Susquehanna cut Five Below to a “neutral” rating in a research note on Tuesday, July 21st. KeyCorp reiterated a “sector weight” rating on shares of Five Below in a report on Thursday, June 4th. UBS Group set a $325.00 price objective on Five Below in a report on Thursday. Wolfe Research cut Five Below from an “outperform” rating to a “peer perform” rating in a report on Thursday, August 13th. Finally, Guggenheim raised their price objective on Five Below from $250.00 to $290.00 and gave the company a “buy” rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $277.55.

Institutional Trading of Five Below

Several hedge funds have recently added to or reduced their stakes in the business. Global Retirement Partners LLC grew its holdings in shares of Five Below by 1.5% in the fourth quarter. Global Retirement Partners LLC now owns 3,264 shares of the specialty retailer’s stock worth $615,000 after purchasing an additional 49 shares during the last quarter. Bessemer Group Inc. increased its position in shares of Five Below by 26.6% in the first quarter. Bessemer Group Inc. now owns 257 shares of the specialty retailer’s stock valued at $59,000 after acquiring an additional 54 shares during the period. V Square Quantitative Management LLC raised its stake in shares of Five Below by 29.6% during the first quarter. V Square Quantitative Management LLC now owns 241 shares of the specialty retailer’s stock valued at $55,000 after acquiring an additional 55 shares during the last quarter. Optimize Financial Inc grew its stake in shares of Five Below by 1.4% in the fourth quarter. Optimize Financial Inc now owns 3,948 shares of the specialty retailer’s stock worth $744,000 after purchasing an additional 56 shares during the last quarter. Finally, Benjamin Edwards Inc. increased its holdings in Five Below by 1.6% during the 4th quarter. Benjamin Edwards Inc. now owns 3,743 shares of the specialty retailer’s stock valued at $705,000 after purchasing an additional 60 shares during the period.

Five Below Stock Performance

The business has a 50-day simple moving average of $215.71 and a 200 day simple moving average of $217.34. The firm has a market cap of $13.39 billion, a P/E ratio of 30.59, a price-to-earnings-growth ratio of 1.27 and a beta of 0.99.

Five Below Company Profile

Five Below, Inc (NASDAQ:FIVE) is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.