Five Below Q2 Sales Top 1 Billion

Five Below(NASDAQ:FIVE) reported fiscal second quarter 2025 results on Aug. 27, 2025, posting record sales of $1.03 billion (up 23.7% year over year), a 12.4% increase in comparable sales, and a 50% jump in adjusted EPS to $0.81. Management raised full-year sales and operating margin guidance, but flagged ongoing margin pressure from tariffs and higher SG costs in the coming quarters. The following insights highlight key drivers, risks, and strategic shifts from the earnings call.

The company opened 32 net new stores in the quarter, bringing its total to 1,858 locations, and saw 8.7% year-over-year growth in comparable transactions. This marks the first time Five Below surpassed $1 billion in sales outside the peak fiscal fourth quarter holiday period, driven by both increased traffic and higher average unit retail (AUR).

This milestone demonstrates the effectiveness of Five Below's merchandising, pricing, and marketing strategies in driving both top-line growth and profitability, while also highlighting the scalability of its store model across diverse markets.

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Source Fool.com