Five Below delivered a standout QQ2 2025 performance, delivering total sales of approximately $1.027 billion, up 23.7% year over year, with comp sales up 12.4% and transactions rising 8.7%. Management attributed the acceleration to a flywheel of curated newness, simplified pricing at whole-dollar points, improved in-stock availability, and growth-driven marketing powered by creator content. The quarter culminated in an adjusted EPS of $0.81, up 50% year over year, supported by fixed cost leverage and disciplined expense management. Net income rose to roughly $42.8 million on an adjusted basis, while reported operating margin expanded to about 5.1%. Five Below also extended its store footprint with 32 net new stores, ending QQ2 2025 with 1,858 stores, underscoring the company’s strong unit economics and scale advantages in the US value segment.
Consolidated margins benefited from fixed-cost leverage and pricing discipline, though management flagged tariff-related headwinds as a transitory pressure on gross margin. The company guided full-year 2025 sales to $4.44–$4.52 billion with a 5%–7% comparable-sales uplift and projected adjusted diluted EPS of $4.70–$5.16. Management emphasized continued inventory acceleration to position for the holiday season and highlighted a broader strategic shift toward value-based, trend-right products with a higher mix of in-line items updated to avoid dependency on any single trend. Overall, Five Below’s QQ2 performance reinforces its position as a durable, value-focused, kid-centric retailer with improving operating leverage and an increasingly agile supply chain in a tariff-volatile environment.