Five Below reported a standout fourth quarter, with sales and earnings beating expectations as strong demand from younger shoppers drove double-digit comparable sales growth.
The value retailer posted net income of $238.2 million for the quarter ended Jan. 31, up from $187.5 million a year earlier, while adjusted earnings per share rose to $4.31, comfortably ahead of analyst estimates.
Net sales climbed 24.3% to $1.73 billion, also beating forecasts, with comparable sales up 15.4%.
CEO Winnie Park said the company saw broad-based strength across product categories, store vintages and income groups, crediting improved marketing, new product ranges and a simplified pricing strategy for driving both traffic and basket size.
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The retailer described the period as its strongest holiday performance since going public, underscoring momentum in its low-price, trend-driven model aimed at teens and pre-teens.
For the full year, Five Below reported net sales growth of 22.9% to $4.76 billion, with comparable sales up 12.8%. Net income rose to $358.6 million, while adjusted earnings per share increased to $6.67.
Looking ahead, the company plans to open 150 new stores in 2026, matching last year’s expansion pace, as it continues to scale its national footprint. Five Below ended the year with 1,921 stores across 46 states.
The retailer expects full-year adjusted earnings per share in the range of $7.74 to $8.25, with net sales projected between $5.2 billion and $5.3 billion. Comparable sales are forecast to grow between 3% and 5%.
Management said it remains focused on delivering trend-led merchandise at value price points, strengthening customer engagement and enhancing the in-store experience, positioning the business for continued growth despite a more uncertain consumer backdrop.
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