Here's our initial take on Five Below's (NASDAQ: FIVE) fiscal 2025 first-quarter financial report.

Key Metrics

Rising Transactions, Operating Income, and Earnings

Five Below reported solid first-quarter results despite a complex macroeconomic backdrop. Comparable sales rose by 7.1%, driven largely by an increase in transactions, while total revenue jumped 19.5%. The company opened 55 new stores during the quarter, and those stores are performing well, according to Five Below CEO Winnie Park.

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The retailer is navigating tariffs and global economic uncertainty, and so far, those potential headwinds haven't had much of an impact on Five Below's business. Operating income and adjusted earnings per share rose significantly from the first quarter of fiscal 2025, with the latter beating analyst expectations.

For the fiscal second quarter, Five Below expects to open around 30 net new stores and produce comparable sales growth between 7% and 9%. Total revenue should come in between $975 million and $995 million, while adjusted EPS is expected between $0.50 and $0.62.

For the full fiscal year, the company sees comparable sales growth between 3% and 5%, 150 net new stores, revenue between $4.33 billion and $4.42 billion, and adjusted EPS between $4.25 and $4.72.

Image source: Getty Images.

Immediate Market Reaction

Share prices of Five Below were up about 2% in after-hours trading on Wednesday soon after the release of the first-quarter report. The company beat analyst estimates for revenue and adjusted EPS, and its second-quarter outlook looked solid. However, the full-year outlook called for slower comparable sales growth, which could be keeping the stock price in check.

What to Watch

While tariffs and economic uncertainty aren't having much of an impact on Five Below right now, the situation is fluid. The company sourced about 60% of its purchases from domestic vendors in 2024, although it's difficult to know how exposed those vendors are to tariffs. The timing and makeup of trade deals the U.S. strikes with other countries will have an impact on Five Below's costs, and consumer behavior remains a wildcard. Investors should listen to Five Below's earnings call on Wednesday evening for more information from management on how tariffs are affecting the full-year outlook.

Helpful Resources

• Full earnings report
• Investor relations page

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Shares of Five Below (NASDAQ: FIVE) were moving higher this week in response to a better-than-expected first-quarter earnings report. In addition, commentary from Dollar General, which is also reported earnings this week, led investors to believe that discount stores were well-positioned in the current economic environment.

As of 2:59 p.m. on Thursday, the retail stock was up 8.5%, according to data from S&P Global Market Intelligence.

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Image source: Getty Images.

Five Below keeps growing

Five Below, which primarily sells items for $5 or less like toys, games, accessories, and snacks, said that comparable sales in the quarter rose 7.1%, driving overall revenue up 19.5% to $970.5 million, which edged out estimates at $966.5 million.

The growth in the quarter reflects new store openings, as the company added 55 locations in the period to bring its grand total to 1,826.

Comparable sales growth was also fueled by "trend-right product, extreme value, and a fun store experience," according to CEO Winnie Park. The tariff-related pressures in the macro environment may have helped too.

Adjusted operating income surged from $38.1 million to $59.6 million, and adjusted earnings per share jumped from $0.60 to $0.86, ahead of the consensus at $0.83.

The company also said CFO Kristy Chapman is stepping down, and it would begin a search for her replacement.

Can Five Below keep gaining?

Looking ahead, Five Below expects its momentum to continue into the second quarter, calling for comparable-sales growth of 7%-9% and revenue of $975 million-$995 million, with 30 new stores. On the bottom line, it sees adjusted earnings per share of $0.50-$0.62. That forecast compares to estimates of $958.3 million in revenue and EPS of $0.58.

Five Below expects slower top-line growth in the second half of the year. Still, the comparable-sales results are impressive in the current environment. The stock trades at a premium, but it's easy to see why after the latest report.

Should you invest $1,000 in Five Below right now?

Before you buy stock in Five Below, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Five Below wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.

Five Below (NASDAQ: FIVE) stock is gaining ground in Thursday's trading. The company's share price was up 6.5% as of 12:45 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was up 0.1%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was up 0.4%.

After the market closed yesterday, Five Below published results for the first quarter of its current fiscal year. It delivered sales and earnings that beat Wall Street's expectations for the quarterly period, which ended May 3.

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Image source: Getty Images.

Five Below stock jumps on Q1 sales and earnings beats

For fiscal Q1, Five Below posted non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.86 on revenue of $970.53 million. Meanwhile, the average analyst estimate had called for the business to record adjusted earnings per share of $0.83 on sales of $966.49 million. Overall revenue was up 19.5% year over year in the period, with a 7.1% increase for same-store sales and new location openings helping to power strong revenue expansion in the period. Adjusted earnings per share were roughly 43% compared to last year's quarter.

What's next for Five Below?

For the current quarter, Five Below is guiding for sales to come in between $975 million and $995 million. The guidance range came in significantly better than the average Wall Street forecast, which had called for sales of $958.33 million. Five Below management expects same-store sales growth between 7% and 9% this quarter.

Meanwhile, adjusted earnings per share in fiscal Q2 are projected to be between $0.50 and $0.62. For comparison, the average Wall Street analyst estimate had called for adjusted earnings per share of $0.58 prior to Five Below's recent quarterly report. While the midpoint of management's earnings guidance came in below the average analyst estimate, guidance for strong same-store sales growth appears to have offset concerns related to the shortfall on the profit target.

Should you invest $1,000 in Five Below right now?

Before you buy stock in Five Below, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Five Below wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.

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