Specialty discount retailer Five Below saw its sales soar in the first quarter of 2025, with its net sales going up by 20% to $970.5 million.
Additionally, the company saw its comparable sales grow by 7.1%, and net income surged by 31% to $41.1 million.
The discount retailer is confident in its ability to continue with its strong momentum throughout the year, raising its full-year outlook.
Winnie Park, CEO of Five Below, said: “Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value, and a fun store experience. We were pleased to see broad-based strength across the majority of our merchandising worlds, resulting in a transaction-driven 7.1% increase in comparable sales, as well as strong performance from our new stores.”
Five Below projects to achieve sales of $4.33 to $4.42 billion in the upcoming fiscal year, up from its previous guidance of $4.21 billion to $4.33 billion.
The company also expects comparable sales to rise by 3% and 5% and its net income to total between $223 million and $249 million.
The retailer stated its strong results were driven by a new assortment of products and sourcing of trending products.
Five Below also scaled back its imports from China by around 10 percentage points and plans to diversify its supply chain to mitigate the impact of tariffs.
Additionally, the retailer announced that Kristy Chipman, Chief Financial Officer and Treasurer, is set to depart from the role.
Kenneth Bull, Chief Operating Officer, is set to serve as the interim CFO as the retailer actively seeks a replacement.
Five Below joins a growing list of discount retailers thriving amid economic uncertainty and additional tariffs.
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