Five Below (FIVE) Stock Pops 6% on Blowout Q2 Earnings

TLDR

• Five Below rose 6.2% in premarket after beating Q2 earnings and sales estimates
• Adjusted EPS came in at $1.68 vs. the $1.33 consensus estimate
• Net sales rose 22.9% year over year to $1.26 billion
• Comparable sales grew 14.1%, the fifth straight quarter of double-digit growth
• Five Below raised full-year 2026 EPS guidance to $9.83-$10.31 and approved a $600 million buyback

Five Below (FIVE) stock jumped 6.2% in premarket trading on Thursday after the company posted fiscal Q2 results that topped Wall Street estimates on both earnings and revenue.

Five Below, Inc., FIVE

The retailer reported adjusted EPS of $1.68, well above the analyst consensus of $1.33. Net sales came in at $1.26 billion, up 22.9% year over year and ahead of the $1.21 billion analysts had expected. The stock was trading near the top of its 52-week range of $137.77 to $263.88 following the move.

$FIVE BELOW Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $1.26B (Est. $1.22B) 🟢; +22.9% YoY
🔹 Adj. EPS: $1.68 (Est. $1.39) 🟢; +107% YoY
🔹 Comparable Sales: +14.1%; record double-digit growth
🔹 Adj. Oper Income: $113.2M (Est. $93.3M) 🟢; +105% YoY

Raises FY26 Guide:
🔹 Revenue:… pic.twitter.com/sROp9MxAhI

— Wall St Engine (@wallstengine) September 2, 2026

Comparable sales rose 14.1% in the quarter. That marks five consecutive quarters of double-digit comparable-sales growth, a streak that is hard to ignore.

What Drove the Comparable Sales Growth

The growth in comparable sales was driven by higher customer traffic and transaction volumes, not by higher average ticket prices. That distinction matters. It suggests more people are walking through the doors and buying more often.

Five Below raised its full-year 2026 net sales guidance to a range of $5.63 billion to $5.71 billion. It also lifted its adjusted diluted EPS forecast to between $9.83 and $10.31.

The board separately approved a new $600 million share repurchase programme.

Analyst Reaction

Deutsche Bank raised its price target on FIVE to $334 from $318 following the results. Jefferies kept its Buy rating with a $350 price target.

Guggenheim also raised its target, moving to $290 from $250 while maintaining a Buy rating. Analyst John Heinbockel pointed to structural changes in product, marketing, and presentation as the engine behind the top-line turnaround.

Telsey raised its target to $305 from $280 with an Outperform rating. Wells Fargo moved its target to $295 from $260, citing momentum and potential for further earnings growth.

Heinbockel noted the stock rallied roughly 5% in after-hours trading following the results, though he said the modest move likely reflects the challenging comparisons that extend into 2027.

At 12.8 times Guggenheim’s 2027 estimate, the stock approximates EBITDA PEG rates above 1.0x typically assigned to well-positioned growth companies. Five Below currently trades at a P/E of 30.44 with a PEG ratio of 0.46.

The stock has returned 61% over the past year. According to InvestingPro, 11 analysts have recently revised their earnings estimates upward for the upcoming period.

The broader market was modestly higher on the day, with the S&P 500, Dow Jones, and Nasdaq each gaining around 0.2%.

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