Five Below Inc. (NASDAQ:FIVE) traded higher in Wednesday’s after-hours session after the discount retailer posted a standout set of third-quarter results, fueled by strong comparable sales and continued expansion of its store footprint.
The company reported adjusted earnings of $0.68 per share for the quarter ended November 1, 2025 — blowing past analyst expectations of $0.23. Revenue jumped 23.1% year-over-year to $1.038 billion, comfortably above the $972.43 million consensus. Same-store sales surged 14.3% from a year earlier.
“We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth,” said Winnie Park, CEO of Five Below. “This outstanding performance reflects our Crew’s great execution of our customer-centric strategy.”
Five Below added 49 net new stores during the period, bringing its total to 1,907 locations across 44 states — a 9% increase from last year.
The retailer also raised its full-year outlook, now projecting fiscal 2025 revenue between $4.62 billion and $4.65 billion, with adjusted EPS expected to land between $5.71 and $5.89.
For the fourth quarter, Five Below anticipates revenue of $1.58–$1.61 billion — ahead of the $1.55 billion consensus — and adjusted EPS of $3.36–$3.54, also topping expectations of $3.28.
Operating income for the quarter reached $43.3 million, a notable improvement from the $0.6 million operating loss recorded a year earlier. The effective tax rate rose to 25.7%, up from 23.4% in the prior period.
Jefferies analyst Randal Konik reacted positively to the report, noting that “Q3 highlights FIVE’s nimble, scalable model fueling strong growth.”
“With disciplined ops and trend-driven assortments, momentum is strong. We see more upside as the team executes and demand stays robust,” he added, raising his price target to $215 from $185.
Five Below enters the holiday season with considerable momentum, and management expressed confidence that its value-focused assortment positions the retailer well to capture heightened seasonal demand.