Financial Analysis

Commitments and Contingencies Commitments Other Contractual Commitments The Company has an executive severance plan that is applicable to certain key crew that provides for, among other things, salary, bonus, severance, and change in control provisions. As of May 2, 2026, the Company has other purchase commitments of approximately $5.0 million consisting of purchase agreements for materials that will be used in the construction of new stores. Contingencies Legal Matters The Company is subject to various proceedings, lawsuits, investigations, disputes, and claims arising in the ordinary course of the Company's business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions filed against the Company from time to time include commercial, intellectual property, customer, consumer, and employment proceedings, including class action lawsuits. The plaintiffs and government authorities in some actions may seek unspecified damages, injunctive relief, penalties and cost reimbursement. Actions are in various procedural stages, and some are covered in part by insurance. The Company cannot predict with assurance the outcome of actions brought against the Company. Accordingly, adverse developments, settlements, or resolutions may occur and negatively impact income in the quarter of such development, settlement or resolution. If a potential loss arising from these lawsuits, claims and pending actions is probable and reasonably estimable, the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Line of Credit On September 16, 2022, the Company entered into a Second Amendment to Credit Agreement (the ""Second Amendment"") which amended the Fifth Amended and Restated Credit Agreement, dated as of April 24, 2020, as previously amended by that certain First Amendment to Credit Agreement, dated as of January 27, 2021 (the ""First Amendment""; the Fifth Amended and Restated Credit Agreement as amended by the First Amendment and the Second Amendment, the Credit Agreement), among the Company, 1616 Holdings, Inc., a wholly-owned subsidiary of the Company (""1616 Holdings"" and together with the Company, the ""Loan Parties""), Wells Fargo Bank, National Association as administrative agent (the ""Agent""), and other lenders party thereto (the ""Lenders""). The Credit Agreement provides for a secured asset-based revolving line of credit in the amount of up to $225.0 million (the ""Revolving Credit Facility""). Advances under the Revolving Credit Facility are tied to a borrowing base consisting of eligible credit card receivables and inventory, as reduced by certain reserves in effect from time to time. Pursuant to the Credit Agreement, inventory appraisals and certain other diligence items are deferred, with reduced advance rates during the period that such appraisals have not been delivered. Pursuant to the Second Amendment, the Revolving Credit Facility expires on the earliest to occur of (i) September 16, 2027 or (ii) an event of default. The Second Amendment also replaced …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and snack and seasonal (dollars in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 620,887 48.3 % $ 434,897 44.8 % Fashion and home 352,600 27.4 % 283,761 29.2 % Snack and seasonal 312,115 24.3 % 251,869 26.0 % Total $ 1,285,602 100.0 % $ 970,527 100.0 %

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"Share-Based Compensation Equity Incentive Plan Pursuant to the Company's 2022 Equity Incentive Plan (the Plan), the Companys Board of Directors may grant stock options, restricted shares, and restricted stock units to officers, directors, key crew and professional service providers. The Plan allows for the issuance of up to a total of 4.3 million shares under the Plan. As of May 2, 2026, approximately 2.9 million stock options, restricted shares, or restricted stock units were available for grant. Common Stock Options All stock options have a term not greater than ten years. Stock options vest and become exercisable in whole or in part, in accordance with vesting conditions set by the Companys Board of Directors. Options granted to date generally vest over four years from the date of grant The fair value of each option award granted to crew, including outside directors, is estimated on the date of grant using the Black-Scholes option-pricing model. There w ere no stock options granted, forfeited or exercised during the thirteen weeks ended May 2, 2026 Restricted Stock Units and Performance-Based Restricted Stock Units All restricted stock units (""RSU"") and performance-based restricted stock units (""PSU"") vest in accordance with vesting conditions set by the talent and compensation committee of the Companys Board of Directors. RSUs granted to date generally have vesting periods ranging from less than one year to five years from the date of grant. The fair value of RSUs is …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Income Taxes The following table summarizes the Companys income tax expense and effective tax rates for the thirteen weeks ended May 2, 2026 and May 3, 2025 (dollars in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Income before income taxes $ 162,498 $ 56,494 Income tax expense $ 39,442 $ 15,346 Effective tax rate 24.3 % 27.2 % The effective tax rates for the thirteen weeks ended May 2, 2026 and May 3, 2025 were based on the Companys forecasted annualized effective tax rates and were adjusted for discrete items that occurred within the periods presented. The effective tax rate for the thirteen weeks ended May 2, 2026 was lower t han the thirteen weeks ended May 3, 2025 primarily due to discrete items, which includes the impact of share-based accounting. The Company had no material accrual for uncertain tax positions or interest and/or penalties related to income taxes on the Companys balance sheets as of May 2, 2026, January 31, 2026 and May 3, 2025 and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for the thirteen weeks ended May 2, 2026 and May 3, 2025. The Company files a federal income tax return as well as state tax returns. The Companys U.S. federal income tax returns for the fiscal years ended January 28, 2023 and thereafter remain subject to examination by the U.S. Internal Revenue Service. State returns are filed in various state jurisdictions, as a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company determines if an arrangement contains a lease at the inception of a contract. Operating lease assets represent the Companys right to use an underlying asset for the lease term and operating lease liabilities represent the Companys obligation to make lease payments arising from the lease. During the thirteen weeks ended May 2, 2026, the Company committed to 48 new store leases with average terms of approximately 10 years that have future minimum lease payments of approximately $83.3 million. All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of May 2, 2026 and May 3, 2025, the weighted average remaining lease term for the Company's operating leases was 6.7 years and 7.2 years, respectively, and the weighted average discount rate was 5.3% and 6.1%, respectively. The following table is a summary of the Company's components for net lease costs (in thousands): Thirteen Weeks Ended Lease Cost May 2, 2026 May 3, 2025 Operating lease cost $ 91,425 $ 83,568 Variable lease cost 28,679 25,846 Net lease cost* $ 120,104 $ 109,414 * Excludes short-term lease cost, which is immaterial. The following table summarizes the maturity of lease liabilities under operating leases as of May 2, 2026 (in thousands): Maturity of Lease Liabilities Operating Leases 2026 $ 302,825 2027 391,122 2028 366,967 2029 334,245 2030 289,291 After 2030 704,910 Total leas …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This new guidance requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory, employee compensation, and depreciation and amortization. In January 2025, the FASB issued ASU 2025-01, which clarifies the effective date of ASU 2024-03. The amendment is effective for fiscal years beginning after December 15, 2026 and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software. This new guidance amends certain aspects of the accounting for and disclosure of costs incurred to develop internal use software by removing references to project stages of a software development project, which better aligns with current software development methods. The amendments are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements.

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Revenue from Contracts with Customers Revenue Recognition Revenue from store operations, including third-party delivery services, is recognized at the point of sale when control of the product is transferred to the customer at such time. Internet sales, through the Company's fivebelow.com e-commerce website and mobile app, are recognized when the customer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no significant reserve has been recorded. Gift card sales to customers are initially recorded as liabilities and recognized as sales upon redemption for merchandise or as breakage revenue in proportion to the pattern of redemption of the gift cards by the customer in net sales. The transaction price for the Companys sales is based on the items stated price. To the extent that the Company charges customers for shipping and handling on e-commerce sales, the Company records such amounts in net sales. Shipping and handling costs, which include fulfillment and shipping costs related to the Company's e-commerce operations, are primarily included in costs of goods sold. The Company has elected to exclude all sales taxes collected from customers and remitted to governmental authorities from net sales in the accompanying consolidated statements of operations. Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and snack a …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting The Company has one reportable and operating segment, which derives revenue from sales of the Companys merchandise to customers at its 1,970 brick & mortar store locations, which operate in 46 states, and online at fivebelow.com. No customer accounts for 10% or more of its revenues. The accounting policies of the reportable segment are the same as those described in Note 1 Summary of Significant Accounting Policies. The chief operating decision maker (CODM) is the Companys President and Chief Executive Officer, who assesses and evaluates the performance of the reportable segment. Financial information and data are provided to the CODM on a consolidated basis. The CODM uses consolidated sales and consolidated net income to evaluate performance, make key operating decisions and allocate resources. The Companys significant segment expenses are included on the Consolidated Statements of Operations in Item 1 Consolidated Financial Statements of this Form 10-Q. See Note 2 Revenue from Contracts with Customers for the Companys disaggregated revenue by groups of products. Identifiable segment assets, including the significant segment assets of Cash and Cash Equivalents, Inventory and Accounts Payable, are included on the Consolidated Balance Sheets in Item 1 Consolidated Financial Statements"" of this Form 10-Q. The following table details segment profit and loss for the Company's one reportable segment: Thirteen Weeks Ended May 2, 2026 May 3, 2025 Net sales $ …

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"Summary of Significant Accounting Policies Description of Business Five Below, Inc. is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. The Company offers an edited assortment of products, with most priced at $5 and below. As used herein, Five Below, the Company, refers to Five Below, Inc. (collectively with its wholly owned subsidiaries), except as expressly indicated or unless the context otherwise requires. As used herein, references to crew refer to the Company's employees, and references to shipcenters refer to the Company's distribution and logistics centers. The Company is incorporated in the Commonwealth of Pennsylvania and, as of May 2, 2026, operated in 46 states, excluding Alaska, Hawaii, Idaho, and Montana. As of May 2, 2026 and May 3, 2025, the Company operated 1,970 stores and 1,826 stores, respectively, each operating under the name Five Below. The Companys edited assortment of products includes select brands and licensed merchandise. The Company believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the Company is currently receiving; thus, it is not dependent on a single vendor or a group of vendors. The Company also sells its merchandise on the internet, through the Company's fivebelow.com e-commerce website and mobile app, offering home delivery and the option to buy …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing