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Five Below’s $600 Million Buyback Adds Firepower To The Growth Story!

Five Below, Inc. reported second quarter fiscal 2026 results that surpassed expectations, reflecting progress in its strategic transformation aimed at deepening brand engagement and driving top-line growth. The company posted net sales of $1.3 billion, a 23% increase year-over-year, supported by 14% comparable sales growth and around 9% unit growth. This represents the fifth consecutive quarter of double-digit comparable sales growth, with a two-year stacked growth rate of 26.5%. The company also opened 52 net new stores across 26 states, ending the quarter with 2,022 locations, including entry into the 47th U.S. state, Idaho, and plans to enter Puerto Rico in 2027. New stores demonstrated strong productivity, affirming the company’s disciplined real estate expansion strategy. Adjusted diluted earnings per share more than doubled to $1.68, driven by gross margin expansion of approximately 220 basis points to 35.6% and operating margin gains of about 360 basis points to 9%.