| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 21.9x | 17.8x | Around median | |
Growth | 89 | 25.6% | 7.1% | Top tier | |
Quality | 77 | 12.9% | 4.5% | Top tier | |
Safety | 78 | 1.2x | 2.6x | Top tier | |
Capital Return | 47 | — | 2.12% | Around median | |
Momentum | 83 | 63.0% | 2.9% | Top tier | |
Sentiment | 67 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Five Below operates a retail store network focused on value and trendy products aimed at children, Gen Alpha and Gen Z customers, and their families. Its model relies on driving visits through rapid assortment refreshes, product-related stories and events, and social and digital marketing, then converting that interest into in-store transactions; the assortment includes toys, collectibles, crafts, room décor, accessories, technology, candy, and snacks. The company ended the second quarter of fiscal 2026 with 2,022 stores, after opening 52 net new stores during the quarter, reaching its 2,000th store in July 2026, and entering Idaho in August 2026.
In the second quarter of fiscal 2026, net sales rose 23% to $1.3 billion, supported by comparable sales growth of slightly more than 14% and unit growth of approximately 9%. Growth was driven primarily by increased transactions and customer traffic and extended across customer segments, regions, and product categories, from toys and collectibles to technology, snacks, and room décor, rather than depending on a single category. Two-year cumulative comparable sales growth reached 26.5%, marking the fifth consecutive quarter of double-digit growth.
On an adjusted basis, gross profit increased 31% to $449 million, and gross margin expanded 220 basis points to 35.6%, driven by improved merchandise margin, fixed-cost leverage, and a better shrink provision. Selling, general, and administrative expenses declined by 140 basis points as a percentage of sales to 26.6%, while adjusted operating income more than doubled to $113 million, with operating margin rising 360 basis points to 9%. Adjusted net income also more than doubled to $93 million, and adjusted earnings per share reached $1.68, while EDGAR data for the twelve-month period ending in fiscal 2026 shows revenue of $5.3 billion, net income of $619.2 million, and earnings per share of approximately $11.16.
The analyst consensus is “Buy,” with an average target of $298.6 and a wide range between $224 and $420; the average is approximately 13% above the 52-week range high of $263.88, while the range low is $137.77. This wide divergence indicates that the valuation is highly sensitive to the sustainability of double-digit comparable sales growth, achieving expected adjusted earnings per share of $10.07 in fiscal 2026, and maintaining margin expansion despite fuel costs and tariffs; the available information does not include a published price-to-earnings multiple that can be used as a reference.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Net sales rose 23% to $1.3 billion, with comparable sales growth of slightly more than 14% and unit growth of approximately 9%. The improvement was driven primarily by increased customer traffic and transactions and extended across regions, customer segments, and product categories. Adjusted gross profit increased 31% to $449 million, while adjusted operating margin expanded to 9%. Adjusted earnings per share reached $1.68, more than double the level a year earlier.
Second-quarter fiscal 2026 data does not indicate that direct growth depended on a single product, as management said Squishy Dumplings contributed only a low-single-digit percentage to comparable sales growth. Its indirect impact was greater through attracting visits and enhancing brand awareness, but customers also purchased toys, collectibles, crafts, technology, snacks, and room décor. Licensed assortments included FIFA, NBA, Toy Story, Spider-Man, and Netflix K-Pop Demon Hunters. This broad assortment supports the strategy of shifting from selling individual items to interconnected product stories and collections.
The company expects fiscal 2026 sales between $5.63 billion and $5.71 billion, representing growth of approximately 19% at the midpoint. It expects comparable sales growth between 10% and 12% and an adjusted operating margin of approximately 12.5% at the midpoint after expansion of approximately 250 basis points. The adjusted earnings per share estimate is $10.07 at the midpoint, representing 51% growth over fiscal 2025. This outlook excludes IEEPA tariff refunds and any future share repurchases.
Automated analysis for informational purposes only — not investment advice.
The company ended the second quarter of fiscal 2026 with 2,022 stores after opening 52 net new stores across 26 states during the quarter. It is targeting 150 net openings in fiscal 2026, including approximately 40 stores in the third quarter. It entered Idaho in August 2026 and continues to seek opportunities to fill out its presence in the Pacific Northwest. It also plans to launch a limited number of stores in Puerto Rico during the second half of 2027 using a gradual and disciplined approach.
Adjusted gross margin expanded 220 basis points to 35.6% in the second quarter of fiscal 2026, driven by improved merchandise margin, fixed-cost leverage, and a better shrink provision. However, higher fuel costs offset part of the improvement, and management expects this pressure to continue in the second half of fiscal 2026. Section 301 rates in 2027 may also be slightly higher than the temporary rates under Section 122. In addition, the Five Beyond redesign program requires capital investment between $40,000 and $45,000 per store.
Five Below ended the second quarter of fiscal 2026 with approximately $1.2 billion in cash and cash equivalents and investments, including $170 million in pre-tax IEEPA refunds. It repurchased approximately 311 thousand shares for nearly $60 million during the quarter under the previous $100 million authorization. The board then approved a new $600 million authorization with no expiration date, while affirming that investment in stores and the customer experience remains the priority. Insider activity during the three months through June 29, 2026, recorded one purchase and no sales, providing an overall neutral signal.
