MW Five Below stock continues its tear, as upbeat outlook eases fears of consumer slowdown

By Bill Peters

Shares rally after hours following positive earnings report. Five Below's stock is up 181% over the past 12 months.

Five Below reported quarterly results on Wednesday.

Shares of Five Below rallied after hours Wednesday after the teen-centric discount retailer offered an upbeat forecast for this year and said shoppers across all income levels were buying at its stores, helped by efforts to draw younger shoppers and keep apace with viral trends online.

During the retailer's earnings call on Wednesday, CEO Winnie Park said that plans to focus more on Gen Alpha and Gen Z shoppers, and also on millennial moms - through a more refined approach to social media and services like delivery - were paying off. She added that the company saw strong demand across all types of stores and "all income cohorts."

That approach, she said, helped Five Below take advantage of the current craze for "squishy dumplings" - the latest popular fidget toy that the retailer has managed to cash in on.

Shares jumped 6% in extended trading on Wednesday. The after-hours gains, if they hold, would build off a 181.1% gain for the stock over the past 12 months.

The chain, as the name suggests, sells toys, school supplies and home-decor items that are generally priced around $5. However, it also sells items priced as high as $15.

Five Below's (FIVE) forecast and quarterly results arrived as Wall Street remains focused on higher prices, tariffs, economic disruptions from the war in Iran and the impact on consumers, particularly lower-income ones who have felt the financial effects more acutely.

Nonetheless, other retailers, like Macy's (M) and Ross Stores $(ROST)$, have also been optimistic about the year ahead. Wall Street has bet that bigger tax refunds might jolt consumer spending. However, discount chain Dollar General $(DG)$ recently forecast slower-than-expected sales growth.

Five Below said it expects $5.2 billion to $5.3 billion in sales this year, based on plans for around 150 more stores, with a roughly 3% to 5% increase in same-store sales. The company said it expects adjusted earnings per share of $7.74 to $8.25.

Those forecasts were above analysts' estimates. Five Below said the outlook included the impact of existing U.S. tariffs on imports.

Five Below said that the most recent holiday season was its best since it became a public company in 2012. Legos, crafting kits and remote-controlled cars helped demand.

For the fourth quarter, revenue jumped 24.3% to $1.73 billion. Same-store sales climbed 15.4%. Five Below reported adjusted earnings per share of $4.31.

-Bill Peters

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March 18, 2026 18:47 ET (22:47 GMT)

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