Five Below (FIVE) investor relations material

Executive summary

• Achieved transformational growth in 2025, with net sales up 22.9% to $4.76 billion and comparable sales up 12.8%, driven by customer-centric strategies and operational agility.

• Fourth quarter net sales rose 24.3% to $1.73 billion, with a 15.4% comp increase, marking the strongest holiday performance since going public.

• Opened 150 net new stores in 2025, ending with 1,921 stores in 46 states, expanding into Oregon and Washington, and executed eight record-breaking grand openings in Q4.

• Focused on Gen Alpha, Gen Z, and millennial moms, leveraging social media and cross-functional collaboration to drive engagement and repeat visits.

• Q4 GAAP diluted EPS grew 26.3% to $4.28; adjusted diluted EPS up 23.9% to $4.31.

Financial highlights

• FY 2025 adjusted operating income grew 33% to $472 million; adjusted operating margin expanded 70 basis points to nearly 10%.

• FY 2025 adjusted net income increased 33% to $370 million; adjusted EPS rose 32% to $6.67.

• Q4 adjusted operating income up 23% to $313 million; adjusted EPS up 24% to $4.31.

• Ended 2025 with $932 million in cash equivalents and investments; inventory rose 28% to $847 million, reflecting higher store count and tariffs.

• Effective tax rate for FY 2025 was 25.3%, slightly up from 25.1% in FY 2024.

Outlook and guidance

• FY 2026 net sales expected at $5.2–$5.3 billion (10% growth at midpoint), with 3–5% comp sales growth and 150 new stores.

• Adjusted operating margin projected to rise 100 basis points to 10.9%; adjusted EPS expected at $8 (20% growth).

• Q1 2026 sales guidance: $1.18–$1.2 billion (23% growth), comps 14–16%, and adjusted EPS of $1.63 (90% growth).

• Q1 FY 2026 diluted EPS expected $1.55–$1.67; adjusted diluted EPS $1.57–$1.69.

• Capital expenditures for 2026 forecast at $230–$250 million, supporting 150 new stores and tech/infrastructure investments.