Five Below Inc. raised its full-year outlook after reporting a 22.9% year-over-year increase in second-quarter net sales to $1.26 billion. The retailer now expects fiscal 2026 net sales of $5.63 billion to $5.71 billion, up from a prior forecast of $5.40 billion to $5.48 billion.
Adjusted net income for the quarter rose to $93.4 million, or $1.68 per diluted share, compared with $44.8 million, or $0.81 per share, in the same period last year. For the full year, the company now projects adjusted net income of $546 million to $572 million and adjusted diluted EPS of $9.83 to $10.31, both higher than previous guidance.
Comparable sales grew 14.1% in the quarter, marking the fifth consecutive quarter of double-digit growth. Total net sales for the first half of the fiscal year reached $2.55 billion, a 27.5% increase from the prior-year period. Five Below opened 52 net new stores during the quarter, ending with 2,022 locations across 46 U.S. states.
Management also provided third-quarter guidance, forecasting net sales of $1.21 billion to $1.23 billion and comparable sales growth of 8% to 10%. Adjusted diluted EPS for the period is expected between $1.01 and $1.13. The company authorized a new $600 million share repurchase program, citing strong customer demand, new-store growth, and sustained comparable sales gains as key drivers.
