By Dean Seal

Five Below raised its full-year guidance after a blowout first quarter with surging sales and profit growth.

The value retailer said it now expects sales to hit $5.4 billion to $5.48 billion this fiscal year, up from a prior forecast for $5.2 billion to $5.3 billion. Adjusted earnings should hit $8.65 to $9.05 a share, instead of $7.74 to $8.25 a share as previously projected.

For the fiscal second quarter that ends in late July or early August, the company said it expects sales to rise 14% to 16% to between $1.18 billion and $1.2 billion. Analysts polled by FactSet had been projecting $1.15 billion. The gain includes the opening of 50 new stores and 7% to 9% growth in comparable sales.

Second-quarter earnings are on track to hit $1.15 to $1.27 a share, or $1.17 to $1.29 a share when adjusted for one-time items, the company said. Analysts had forecast $1.13 a share in adjusted earnings.

The boosted revenue and profit targets came after what Chief Executive Winnie Park called an outstanding first-quarter performance with broad-based growth.

Sales jumped more than 32% to $1.29 billion, ahead of analyst estimates for $1.23 billion. Five Below opened 49 net new stores, while comparable sales were up 22.7%. Analysts had been eying a comparable gain of just 19.6%.

Five Below posted a profit of $123.1 million, or $2.21 a share, compared with $41.1 million, or 75 cents a share, in the same quarter a year earlier. Adjusted earnings of $2.22 topped analyst expectations for $1.77 a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 03, 2026 16:35 ET (20:35 GMT)

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