Five Below, Inc. is a leading retailer offering high-quality, trend-right products primarily targeting tweens and teens, with most items priced at $1 to $5, and select extreme value items priced above $5. The company reported its financial results for the first quarter of fiscal 2025, indicating a rise in sales and profitability.

For the first quarter ended May 3, 2025, Five Below generated net sales of $970.5 million, representing a 19.5% increase from $811.9 million in the same quarter of the previous year. Comparable sales also rose by 7.1%, driven by a 6.2% increase in transaction volume. The company opened 55 new stores during the quarter, bringing the total count to 1,826 locations, a growth of 13.8% from the previous year.

Adjusted operating income for the quarter was $59.6 million, up from $38.1 million in the year-over-year comparison. This resulted in an adjusted operating margin of 6.1%, reflecting an increase of approximately 140 basis points. Adjusted net income reached $47.5 million, compared to $33.0 million in the first quarter of last year, leading to an adjusted diluted earnings per share (EPS) of $0.86, up from $0.60.

The company’s gross profit for the quarter was $328.4 million, representing a 24.6% increase year-over-year, with an adjusted gross margin improvement of 140 basis points to 33.8%. Selling, general, and administrative (SG&A) expenses represented 27.7% of sales, slightly lower compared to the same quarter last year, driven by fixed cost leverage offset by labor investments.

For the second quarter of fiscal 2025, Five Below expects net sales between $975 million and $995 million, reflecting growth of 18.7% at the midpoint. Comparable sales are anticipated to increase by 7% to 9%. For the full year, the company’s sales guidance has been raised to a range of $4.33 billion to $4.42 billion, with an expected comparable sales increase of 3% to 5%. Adjusted diluted EPS for the full year is projected between $4.25 and $4.72.

Despite some potential headwinds from tariffs, which are expected to impact operating margins—projected to decline by approximately 200 basis points—Five Below’s operations remain robust, with strategic plans to continue adjusting product sourcing and pricing to maintain competitiveness in the market.

At the end of the first quarter, Five Below reported cash and cash equivalents of approximately $624 million, with no outstanding debt. Inventory levels rose to approximately $702 million, compared to $630 million in the prior year’s quarter. The company remains focused on driving store growth and enhancing in-store experiences.