Five Below (FIVE) Q3 2025 earnings summary

Executive summary

• Q3 net sales increased 15% to $844 million, with comparable sales up 0.6% and adjusted EPS of $0.42, exceeding guidance.

• Opened a record 82 new stores in Q3, bringing the total to 1,749, up 18% year-over-year.

• Leadership transition: Winnie Park named CEO, Ken Bull continuing as COO.

• Organizational refocus on product, value, and store experience underway, with early positive results.

• Net income for Q3 was $1.7 million, down 88% due to higher SG&A expenses and a non-recurring inventory write-off.

Financial highlights

• Adjusted gross profit rose 25.7% to $280.1 million; adjusted gross margin up 290 bps to 33.2%.

• Q3 operating loss of $0.6 million; adjusted operating income $27.6 million.

• Adjusted net income reached $23.3 million, up from $14.6 million; adjusted EPS was $0.42 vs. $0.26.

• Ended Q3 with $216.6 million in cash and no debt; inventory at $818 million, including a $21 million reserve for unproductive inventory.

• Share repurchases totaled 267,000 shares for $40 million year-to-date.

Outlook and guidance

• Q4 net sales expected between $1.35–$1.38 billion; comparable sales to decline 3–5%.

• Full-year net sales expected $3.84–$3.87 billion, up 9–10%, with comparable sales to decline about 3%.

• Adjusted operating margin for the year expected at 9%, down 170 bps from prior year.

• CapEx planned at $340 million, supporting 228 new stores and 180 Five Beyond conversions.

• Management believes cash, investments, and credit facility are sufficient to fund growth and operations for the next 12 months and beyond.