Discount retailer Five Below is celebrating another successful financial quarter after sales jumped by more than 22 per cent.

The Philadelphia-based business recorded $1.26 billion in sales for the three months ending August 1, a 22.9 per cent increase from the previous year. This figure was buoyed by 52 new store openings; it led to $221.4 million in profits, up from $52.4 million in 2025.

“We are thrilled with our second quarter performance and the continued momentum of our customer-centric strategy,” said Winnie Park, CEO of Five Below.

“Our crew delivered strong results by collaborating on trend-right product stories at amazing value in stores that are fun and easy to shop. We remain maniacally focused on delivering our brand promise to be the destination for the kid and the kid in all of us.”

Park said the store openings are coming at a “higher level of executional excellence”. The company has raised its full-year outlook for investors.

Global Data’s MD, Neil Saunders, called the figures “fantastic” for the company. 

“The low-price proposition remains central to success as it makes Five Below a destination where people can treat their kids (and often themselves) without breaking the bank,” he added.

“That offer has been strengthened over the past year or so by more newness and a lot more on-trend products. 

“However, this isn’t simply about adding a slew of random things into the mix; there is also a much better discipline in creating product stories and collections that are focused on cohorts like Gen Alpha, Gen Z, or young parents. This ensures that the appeal remains broad but is also focused and easily understandable in stores,” Saunders concluded.