Five Below (FIVE) reported five consecutive quarters of double-digit comparable store sales growth and upgraded its full-year 2026 operating margin outlook to approximately 12.5%, according to remarks made by executives at the Barclays 19th Annual Global Consumer Conference on Wednesday, September 9, 2026.
Chief Executive Officer Winnie Park, who joined the company just under two years ago, outlined an accelerating turnaround marked by tighter real estate selection initiated roughly 15 to 18 months prior and an email capture program launched about a year ago. The company’s newly appointed chief marketing officer, serving in the role for approximately 15 to 16 months — the first true CMO in the company’s history — was also noted during the session.
Five Below operates more than 2,000 stores today and sees a clear path to more than 3,500 locations across the U.S. Management expects annual unit growth of about 8% to 9%, which would translate to roughly 150 new stores in 2026. New-store productivity has improved to the 90% range from the 70% range about 18 months earlier, and payback is expected in 12 to 15 months. The company recently entered the Pacific Northwest with nine new stores, all of which set grand-opening records, and added its 47th state with a location in Idaho.
On pricing, Park emphasized that about 80% of items remain priced at $5 or less, with the expanded price point concentrated in the $7 to $10 range. Selective merchandise is carried above $15, $20 and $25. Trend-driven product continues to move the needle: the “squishy dumpling” item contributed low-single-digit points to comparable store sales in both the first and second quarters of 2026.
Chief Financial Officer Dan Sullivan described capital allocation as an “and rather than or” strategy, meaning the company is investing in growth while simultaneously returning capital to shareholders. Five Below announced a new $600 million share repurchase authorization following its second-quarter earnings report. In the second quarter, the company received approximately $165 million in tariff refunds under the International Emergency Economic Powers Act and earned about $6 million in interest income.
Shares of Five Below have gained 78% over the past year and were trading near their 52-week high of $263.88, with the stock last recorded at $249.72. Revenue has grown 25.6% over the trailing twelve months, and the company trades at a P/E ratio of 22.35 with a PEG ratio of 0.18. The company is scheduled to provide 2027 guidance in March 2027.
