Five Below (FIVE) 27th Annual ICR Conference 2025 summary

Holiday performance and strategic reset

• Results for the holiday season were in line with plans, driven by a renewed focus on product, value, and customer experience.

• Store service improved through increased labor investment, energizing teams and benefiting customers.

• Value proposition was amplified at lower price points ($1, $2, $3), while maintaining focus on $5 and above.

• Key product categories like beauty, gift sets, cozy, and seasonal items performed well, but there is room for deeper inventory and more authoritative buying.

• Black Friday event combined innovative marketing and in-store experience, resulting in strong performance.

Sales cadence, guidance, and operational insights

• Black Friday and the last seven days before the holiday were particularly strong, with in-store traffic benefiting from last-minute shoppers.

• Calendar shifts led to a 3.2% comp decline for the nine-week holiday, matching expectations for lost peak shopping days.

• January guidance remains conservative due to weather impacts and tougher comparisons in the latter half of the month.

• Shrink is being closely monitored, with ongoing store counts to ensure no surprises; EPS guidance range remains unchanged.

Leadership transition and organizational focus

• New CEO brings a customer-centric perspective and aims to reinforce the core value proposition of product, value, and experience.

• Leadership is focused on supporting a strong merchandising team and filling the key head of marketing position.

• Collaboration between executive chairman, CEO, and long-tenured leaders is expected to drive strategic execution.