Five Below: When five dollars goes further than expected
Scores at time of recommendation (April 13, 2026)
5-year stock timeline
2026-09-02 — Q2 fiscal 2026 results and outlook raise
Five Below reported Q2 FY2026 results that beat estimates and raised full-year guidance. Management disclosed continued strong store openings and comp growth, shifting investor perception toward renewed growth momentum. The market treated Five Below as executing a scale and same-store sales recovery driven by merchandising and social amplification, restoring confidence in the company's mid-teens growth potential. Management lifted FY2026 net sales outlook to $5.63–$5.71 billion and raised adjusted diluted EPS guidance to roughly $9.83–$10.31 per share, disclosing 115 net new store openings in the fiscal year-to-date context [13][7].
2026-06-03 — Q1 fiscal 2026 results; 1,970 stores
Five Below announced Q1 FY2026 results, opening 49 net new stores in the quarter and ending with 1,970 stores in 46 states. Investors saw consistent execution on expansion (near 150 net new stores planned for the year) and improving comps, reinforcing a growth and reopening story anchored in store rollout and product newness. Confidence in CEO Winnie Park and the operational playbook strengthened. Company guidance for FY2026 net sales of $5.40–$5.48 billion (initial range announced in Q1) and expected comparable-store sales growth of approximately 6%–8% supported the narrative. Quarter-end store count reached 1,970 stores with 49 net new openings in Q1 [1][11].
2025 — Share repurchases and capital allocation
Five Below's board maintained active share-repurchase programs and continued prioritizing store growth capex, including conversions to Five Beyond format. Market perception mixed between growth investor enthusiasm and shareholders valuing buybacks as disciplined capital return while the company remained growth-oriented. Buybacks were viewed as evidence of confidence in the business and an attempt to offset share dilution from share-based compensation. Annual share repurchases reported approximately $40.2 million in 2025 [3].
2024 — Continued store expansion, margin improvement focus
Five Below executed aggressive new-store openings, targeting roughly 150–200 net new stores in fiscal planning windows, and emphasized margin expansion through merchandising and supply-chain improvements. Investors framed Five Below as a high-return rollout growth story with improving unit economics, shifting the narrative toward a mid-cycle retailer scaling its omni merchandising strength and targeting operating leverage [8][3].
2023-08-30 — Q2 fiscal 2023: solid sales growth, guidance edits for shrink
Five Below reported Q2 FY2023 net sales of $759.0 million (up 13.5% year-over-year) and comparable sales of 2.7%. The company adjusted earnings guidance to reflect higher shrink reserves while maintaining sales outlook and accelerating store openings. The quarter reinforced the Five Beyond conversion strategy and growth runway. Q2 FY2023 net sales reached $759.0 million with comparable sales of 2.7%. Store count at quarter end was 1,407 stores, with approximately 40 net new stores opened that quarter [2][6].
2023 (March) — Fiscal 2022 results; record store-opening target for 2023
Five Below reported FY2022 results with net sales of $3,076.3 million (up 8.0% versus FY2021) and announced plans to open a record 200 new stores in 2023 plus convert 400 stores to the Five Beyond format. Management highlighted a healthy, debt-free balance sheet. Market narrative centered on resilient-value growth, with management pitching the company as resilient through inflationary pressures while investors balanced optimism about a large store-opening runway against near-term comps pressure. Guidance announced for record 200 new stores and 400 Five Beyond conversions in 2023 [4].
2021–2022 — Pandemic recovery, expansion and "Triple-Double" strategy
During and after the pandemic, Five Below focused on recovering traffic, expanding store count, and launching the Five Beyond format and the "Triple-Double" long-term goals encompassing store growth, category expansion, and margin improvement. Investors moved from pandemic-era uncertainty to a growth and scale orientation. Five Below was increasingly characterized as a resilience-driven value retailer with an attractive expansion runway in the U.S. and multi-year comp and margin upside if consumer value demand persisted. FY2022 sales reached $3,076.3 million versus FY2021 sales of $2,848.4 million [4][5].
Key Points
- Zacks Rank #1 (Strong Buy), EPS estimates for the current year raised by 14.1% in the last 60 days
- EPS growth expected: +19.2% in the current year - well above the industry average of 5.8
- Cash flow growth of 26.2% compared to previous year signals operational strength
- PEG ratio of 1.23 - valued more favorably than the industry average
- Sales growth of 24.3 % and profit growth of 26.3 % show momentum
- Network currently at approx. 1,858 stores - long-term target of up to 3,500 locations
- Profit margin 7.5 %, P/E ratio 33.7 - reasonable for a growth company of this quality
Investment Thesis
Five Below is not a classic dollar store - and that's the point. The company has created its own niche between bargain hunters and trend shoppers, with a range that deliberately targets younger consumers: Lifestyle, toys, sweets, technology gadgets - all at prices that make purchasing decisions easy. Organic growth is impressive and the story of expansion is far from over. With a long-term target of up to 3,500 stores, Five Below still has a considerable runway. The new 'Five Beyond' section, which offers products above the traditional five-dollar price point, expands the range and addresses a broader customer base - without abandoning the core promise of low prices. Fundamentally, the company is in good shape: sales and earnings growth in the high double-digit range, solid cash flow and a balance sheet that sends no alarm signals.
Key risks and downside factors
Five Below competes in value and discount specialty retail, targeting teens, pre-teens, and price-conscious families. The competitive landscape includes dollar stores, mass merchandisers, trend-driven specialty retailers, and off-price chains capable of matching its assortment or undercutting its prices. Material risks stem from tariff and freight pressures on margins, inflation, supply-chain volatility affecting trend-dependent inventory, and competition from larger national retailers and nimble online players that erode store traffic and pricing flexibility.
- Intense competition from dollar stores, mass merchandisers, off-price retailers, and low-cost e-commerce platforms creates pressure on traffic and pricing power.
- Supply-chain disruptions, elevated freight costs, and tariffs on imported goods all work to increase the cost of goods sold and compress gross margins.
- Inventory and trend risk: inability to source, forecast, or quickly rotate items that drive sales can depress sell-through and compound markdowns alongside shrink.
- Rising labor, occupancy, and distribution costs—driven by wage inflation, elevated store rents, and fulfillment expenses—create operational and financial pressure that can erode operating leverage and compress profitability.
Competitive landscape
Five Below (FIVE) operates in value specialty retail and the teen-focused discretionary segment, where it faces competition from national dollar stores, mass merchants, off-price apparel and home chains, and online fast-fashion and discount marketplaces. The company faces meaningful headwinds: margin compression from promotional activity and elevated supply-chain costs, potential traffic and market-share loss to larger omnichannel retailers and digital marketplaces, and operational risks tied to its aggressive store expansion and inventory control [8], [3], [21].
| Company | Ticker |
|---|---|
| Dollar Tree, Inc. | DLTR.NASDAQ |
| Dollar General Corporation | DG.NYSE |
| Target Corporation | TGT.NYSE |
| The TJX Companies, Inc. | TJX.NYSE |
| Ross Stores, Inc. | ROST.NASDAQ |
| Walmart Inc. | WMT.NYSE |
Private competitors
- Miniso (privately-held international stores/operators in many markets)
- Regional/value-focused discount chains and independent dollar stores (collective)
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- Q1-2026 results: First concrete signal of how well the company is cushioning tariff pressure and weakening consumption
- Further store openings: Progress towards the 3,500-store target as ongoing proof of the expansion strategy
- Development of the 'Five Beyond' section: acceptance of higher price points among the core target group determines margin prospects
- Macro sentiment: recovery in consumer confidence would disproportionately favor impulse-buy-heavy product ranges
- Analyst revisions: Further upward revisions to EPS estimates could generate additional share price pressure
Analysis
Performance Figures of Five Below Inc
Relative Performance vs Benchmarks
| Period | Five Below Inc | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | -11.05% | -7.02% | -10.93% |
| 3M | +20.36% | +21.85% | +17.50% |
| 6M | -6.72% | -15.49% | -23.83% |
| 1Y | +41.93% | +36.41% | +25.98% |
| 3Y | +36.46% | -27.31% | -48.91% |
| 5Y | +26.44% | -39.82% | -61.72% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | 19.7 | 2.3 | 4.9 | 15.2 |
| 1Y ago | 31.4 | 2.0 | 4.5 | 15.3 |
| 3Y ago | 33.2 | 2.8 | 6.3 | 20.6 |
| 5Y ago | 38.3 | 3.8 | 9.9 | 21.8 |
Frequently Asked Questions
Is Five Below Inc a good investment?
What does Five Below Inc do?
What are the key metrics for FIVE.NASDAQ?
How has Five Below Inc's stock price performed?
How is FIVE.NASDAQ valued?
What are the growth catalysts for Five Below Inc?
- Q1-2026 results: First concrete signal of how well the company is cushioning tariff pressure and weakening consumption
- Further store openings: Progress towards the 3,500-store target as ongoing proof of the expansion strategy
- Development of the 'Five Beyond' section: acceptance of higher price points among the core target group determines margin prospects
- Macro sentiment: recovery in consumer confidence would disproportionately favor impulse-buy-heavy product ranges
- Analyst revisions: Further upward revisions to EPS estimates could generate additional share price pressure
What are the key risks when investing in FIVE.NASDAQ?
- Intense competition from dollar stores, mass merchandisers, off-price retailers, and low-cost e-commerce platforms creates pressure on traffic and pricing power.
- Supply-chain disruptions, elevated freight costs, and tariffs on imported goods all work to increase the cost of goods sold and compress gross margins.
- Inventory and trend risk: inability to source, forecast, or quickly rotate items that drive sales can depress sell-through and compound markdowns alongside shrink.
- Rising labor, occupancy, and distribution costs—driven by wage inflation, elevated store rents, and fulfillment expenses—create operational and financial pressure that can erode operating leverage and compress profitability.
Who are the main competitors of Five Below Inc?
- Dollar Tree, Inc. (DLTR.NASDAQ)
- Dollar General Corporation (DG.NYSE)
- Target Corporation (TGT.NYSE)
- The TJX Companies, Inc. (TJX.NYSE)
- Ross Stores, Inc. (ROST.NASDAQ)
- Walmart Inc. (WMT.NYSE)
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2026 | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| Revenue | 4.76B | 3.88B | 3.56B | 3.08B | 2.85B |
| Operating income (EBIT) | 457.40M | 323.82M | 385.57M | 345.04M | 379.88M |
| Net income | 358.64M | 253.61M | 301.11M | 261.53M | 278.81M |
| Free cash flow | 411.69M | 106.65M | 164.57M | 62.97M | 39.74M |
| Total assets | 5.52B | 4.34B | 3.87B | 3.32B | 2.88B |
| Equity | 2.19B | 1.81B | 1.58B | 1.36B | 1.12B |
| Net debt | 1.31B | 1.65B | 1.56B | 1.16B | 1.23B |
PWP Leeway UG (haftungsbeschränkt)
