Five Below Inc (NASDAQ: FIVE) is a specialty value retail company that operates discount stores selling trend-right merchandise, most priced at $5 and below, targeting kids, teens, and value-oriented shoppers across the United States. Revenue is generated entirely through direct retail sales across its physical store network, with no disclosed subscription or wholesale revenue streams. As of January 31, 2026, Five Below operated 1,921 stores across 46 states, with a store model averaging approximately 9,500 square feet per location, typically sited in power, community, and lifestyle shopping centers. The company was founded in 2002 in the greater Philadelphia area by David Schlessinger and Thomas Vellios, originally incorporated as Cheap Holdings, Inc. in Pennsylvania. Winnie Park joined as President and Chief Executive Officer in December 2024. The business is seasonal, with approximately 40% of annual sales occurring during the holiday season. Five Below opened 150 net new stores in fiscal 2025 and plans to open approximately 150 more in fiscal 2026, targeting a long-term U.S. store count of more than 3,500 locations.

Revenue model

Transactional retail sales from physical stores. Most products are priced at $5 and below. No membership fees, subscriptions, or disclosed wholesale revenue. Stores are leased, with typical initial lease terms of ten years.

Products and services

Merchandise organized across eight category worlds: Candy, Style, Party, Room, Create, Tech, Sports, and New & Now. Assortment includes select brands and licensed merchandise. Most products priced at $5 and below, with a dynamically edited, frequently refreshed selection.

Customers and end markets

Primary target demographic is children and teenagers (ages 5 to 19). Merchandise also attracts a broader value-oriented adult customer base. End market is U.S. consumer discretionary spending, with meaningful exposure to holiday-season demand (approximately 40% of total annual sales per the FY2025 10-K).

Value-chain role

Specialty value retailer. Sources products from a broad range of vendors, most domestically based, on a largely non-exclusive basis. Operates its own distribution network including shipcenters in Forsyth, Georgia; Conroe, Texas; Buckeye, Arizona; and Indianapolis, Indiana, plus a corporate headquarters and distribution facility in Pedricktown, New Jersey.

Geographic exposure

United States only. 1,921 stores across 46 states as of January 31, 2026. No disclosed international operations.

Source: SEC 10-K, filed 2026-03-19

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