Five Below Opens 150 Stores as Rivals Shut Doors

While many discount retailers struggle in 2025—prompting store closures at chains like Big Lots and Dollar General—Five Below is taking a different path. The teen- and tween-focused discount chain announced it will open 150 new stores this year, a bold move in a sector grappling with inflationary pressure and declining discretionary spending.

Financials Beat Expectations

The expansion news came as part of the company’s Q4 and full fiscal 2024 earnings report, where Five Below posted:

• $1.39 billion in net sales for Q4, up 4% year-over-year
• Adjusted EPS of $3.48, beating Wall Street expectations by 3.3%
• $3.88 billion in total fiscal 2024 revenue, up 8.9% from the prior year

Those better-than-expected results helped FIVE stock surge over 12% in after-hours trading, and an additional 11% premarket, hitting around $84 per share—a much-needed rebound after a steep drop earlier this year.

Despite this bounce, FIVE shares are still down nearly 28% in 2025 and more than 63% over the last 12 months, reflecting broader concerns about retail headwinds and a cooling consumer climate.

Store Expansion in a Shrinking Sector

Five Below ended fiscal 2024 with 1,771 stores across 44 states. The new 150 planned locations represent an 8.5% increase in store count—a sign that the brand sees continued demand among its young, price-sensitive customer base.

Still, this year’s expansion is more conservative than previous years. Five Below added 227 net new stores in 2024 and 204 in 2023. The current plan also falls at the lower end of the company’s earlier projection of 150–180 new stores for 2025, as shared during its Q2 2024 earnings call.

Tariff Trouble on the Horizon?

Despite the upbeat earnings and growth plans, Five Below acknowledged looming supply chain risks, particularly tied to U.S.-China trade tensions. The company sources about 60% of its goods from China, many of which are priced under $5—a key part of its value-driven appeal.

With former President Trump once again pushing aggressive tariff increases, Five Below may face rising import costs. The company has already confirmed it will raise prices on some sub-$5 items to offset those pressures, potentially dampening appeal among its budget-conscious shoppers.

Looking Ahead

Five Below’s focus on fun, low-cost products for younger consumers continues to set it apart in a struggling retail landscape. Its store expansion, solid earnings beat, and quick investor response show confidence in the brand’s long-term vision.

However, with geopolitical uncertainty, inflation, and tariff risks looming, the company’s ability to maintain both value pricing and profit margins will be tested.

For now, Five Below is proving to be a rare bright spot in a dim retail environment.