Five Below rose about 6 percent today, its fourth straight day of gains, and is now trading at a new high. We think this is mostly the whole market rising today, though the stock's much larger jump suggests buyers are especially optimistic about its growth right now.
Our view
The business is performing well and hitting its store-opening goals, but the stock has become much more expensive very quickly. If you already own it, there is nothing to do here but sit tight and let the expansion play out.
Bernstein upgrades to outperform with a $250 target
Bernstein analysts upgraded the stock to their version of a buy rating. They set a price target of $250, suggesting they see room for the stock to rise from its current price of about $229.
This move signals growing confidence in the company's ability to manage its aggressive store expansion. For a business that relies on opening hundreds of new locations to drive growth, having analysts move to a more positive stance suggests they believe the current store model remains profitable even as it scales.
The company officially opened its 2,000th store in July. This is a significant marker for the business as it works toward its "Triple-Double" strategy, which aims to reach 3,500 locations by the year 2030.
Opening new stores is the primary way this company grows its total sales. Reaching this round number shows the expansion plan is on track. The faster the company can open profitable new locations, the more it can use its size to negotiate better prices from suppliers, which helps keep its merchandise cheap for shoppers.
Mizuho upgraded the stock to its version of a buy rating. This change came on the same day the company celebrated opening its 2,000th store, suggesting analysts are becoming more comfortable with the pace of the rollout.
Upgrades like this often happen when analysts believe the risks to a company's growth plan are fading. In this case, it reflects a view that the retailer can continue to find good locations for new stores without hurting the profits of its existing ones.
Five Below analyst price targets
Analysts recently upgraded the stock twice in July following a period of mixed ratings. Most analysts, 31 of 50, rate the stock a buy, and the average price target of $245 is essentially equal to the current price.
Average target$245.11+0%vs $244.37 today
Avg price
Low $215High $285
Buy50 analysts
0Bearish
19Neutral
31Bullish
FirmRatingPrice TargetDate
Bernstein
Outperform
$250
7/21/2026
Mizuho Securities
Outperform
$220
7/9/2026
Evercore ISI
In Line
$220→$215
7/7/2026
Barclays
Equal Weight
$240→$224
6/5/2026
Craig-Hallum
Buy
$255→$270
6/4/2026
UBS
Buy
$285
6/4/2026
Evercore ISI
In Line
$240→$220
6/4/2026
Bernstein
Outperform
$243→$247
6/4/2026
Mizuho Securities
Outperform
$225
6/4/2026
Morgan Stanley
Equal Weight
$245→$235
6/4/2026
Wolfe Research
Peer Perform
$242
6/4/2026
Truist Financial
Buy
$261→$265
5/27/2026
Five Below earnings
Management has a perfect record of beating expectations over the last two years, often by a wide margin. This suggests they are either very conservative with their forecasts or the business is consistently outrunning their own targets.
Earnings history
EstimateBeatMiss
Five Below past earnings results
Expected
Actual
Surprise
EPS
$1.77
$2.22
+25.4%
Revenue
$1.23B
$1.29B
+4.6%
Key highlights
Strong sales momentum: Net sales grew 32.5% to reach $1.29 billion, as the company benefited from both new store openings and a sharp increase in customer traffic. This is a significant jump from the $970.5 million in sales reported during the same period last year.
Same store sales surge: Comparable sales, which measure performance at stores open at least a year, increased by 22.7% during the quarter. This performance far exceeded the 14.3% growth seen in the third quarter of last year, showing that the company's trendy merchandise is resonating with shoppers.
Profitability margins widening: Operating income, the profit left after paying for the costs of running the business, climbed to $154.2 million. This represents 12% of sales, which is nearly triple the 5.2% margin reported a year ago when profits were only $50.8 million.
Network expansion continues: The company opened 49 net new stores this quarter, bringing its total count to 1,970 locations across 46 states. This expansion represents a 7.9% increase in the total store base compared to the end of the first quarter last year.
Raised annual outlook: Management raised its full year guidance and now expects total sales between $5.40 billion and $5.48 billion, which is higher than previous estimates. The company also expects to open approximately 150 net new stores and see yearly comparable sales grow between 6% and 8%.
Our take: This was an exceptionally strong quarter that showed Five Below can drive massive growth even in an uncertain economy. The 22.7% jump in same store sales is the standout figure, proving the brand is winning over both new and returning shoppers. This performance reinforces the long-term case for the company as it successfully scales toward its 3,500 store goal.
Five Below’s next earnings date
Q2 2026
AUG
26
Expectation
EPS
$1.33
Revenue
$1.21B
Metrics we are tracking
Metric
Expectations
Status
Comparable Sales Growth
Consistent growth above 3% year-over-year
22.7% in Q1 2026
New Store Openings
Opening 200 or more net new stores annually
49 net new stores in Q1 2026
Operating Margin
Maintaining or expanding margins toward the 13% target
12.0% in Q1 2026
Average Ticket Value
Increasing steadily through the rollout of Five Beyond
