Five Below (NASDAQ:FIVE) shares rose 6.2% in premarket trading after the specialty value retailer reported fiscal second-quarter results above analyst expectations and raised its full-year 2026 guidance.
The company reported adjusted earnings per share of $1.68, compared with the consensus estimate of approximately $1.33.
Net sales increased about 22.9% year over year to $1.26 billion, exceeding the approximately $1.21 billion expected by analysts.
Comparable Sales Increase 14.1%
Comparable sales rose 14.1% during the quarter, marking the fifth consecutive quarter of double-digit comparable-sales growth.
According to the source material, the increase was primarily attributable to higher customer traffic and transaction volumes rather than an increase in average ticket prices.
Five Below Raises Fiscal 2026 Outlook
Five Below increased its fiscal 2026 net sales guidance to a range of $5.63 billion to $5.71 billion.
The company also raised its adjusted diluted earnings per share forecast to between $9.83 and $10.31.
Separately, Five Below’s board authorised a new $600 million share repurchase programme.
Analysts Update Five Below Price Targets
Following the quarterly results, Deutsche Bank raised its price target on Five Below shares to $334 from $318.
Jefferies maintained its Buy rating on the stock with a $350 price target.
The broader US equity market was modestly higher, with the S&P 500, Dow Jones and Nasdaq each gaining approximately 0.2%.
Five Below shares were trading toward the upper end of their 52-week range of $137.77 to $263.88 following the premarket move.
Five Below stock price