Five Below (FIVE) 28th Annual ICR Conference 2025 summary

Strategic focus and customer engagement

• Refocused on core teen, pre-teen, and kid customer, emphasizing relevance and connection through social media and storytelling.

• Enhanced cross-functional collaboration, especially between merchandising and marketing, to align on trends and go-to-market strategies.

• Instituted a test, learn, and ramp approach to product assortment, prioritizing fewer, bigger, and better ideas.

• Simplified pricing structure, moving to whole dollar price points and integrating higher-value items into main store sections.

• Began building a customer database to improve targeted communication and engagement, with omni-channel strategies in early stages.

Holiday and recent performance

• Achieved 14.5% comparable sales growth during the holiday, the best since going public, driven by both ticket and transaction growth.

• Growth was broad-based across all districts, store vintages, income cohorts, and 14 of 18 departments.

• Strategic investments in inventory, marketing, and labor ensured full shelves and strong in-store experiences, especially during peak periods.

• Multiple trends and categories contributed to performance, reducing reliance on any single item.

Growth outlook and store expansion

• Confident in long-term unit growth potential, targeting 3,500+ stores, with recent new market entries showing record grand openings.

• Near-term focus on high single-digit percentage box growth, prioritizing premium locations and disciplined execution.

• Expansion strategy includes both fill-in and new market entry, leveraging market intelligence and site selection rigor.