Five Below, Inc.

Good day, and welcome to the Five Below Second Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. Please note this event is being recorded. I would now like to turn the conference over to Ms. Christiana Pels, Vice President, Investor Relations. Please go ahead, ma'am.

Thank you, Operator. Good afternoon, everyone, and thanks for joining us today for Five Below's second quarter 2025 financial results conference call. On today's call are Winnie Park, Chief Executive Officer, and Ken Bull, Chief Operating Officer and Interim Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions. I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and our SEC filings. The forward-looking statements today are as of the date of this call, and we do not undertake any obligation to update our forward-looking statements. In this presentation, we will refer to our SG&A expenses. For us, SG&A means selling general and administrative expenses, including payroll and other compensation, marketing and advertising expense, depreciation and amortization expense, and other selling and administrative expenses. Additionally, we will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP are included in today's press release. If you do not have a copy of today's press release, you may obtain one by visiting the investor relations page of our website at fivebelow.com. I will now turn the call over to Witte.

Hello, and thanks so much for joining us. We're excited to share our second quarter results, which were very strong and exceeded our expectations. I'd like to take a moment to acknowledge a major milestone for Five Below, achieving our first billion-dollar sales quarter outside of a Q4. This is a testament to the hard work and dedication of our teams across the company who delivered our value proposition of great product, extreme value, and a fun shopping experience to our boss, the customer. Our results demonstrate that our customers are recognizing Five Below as the destination for the kid and the KED in all of us. A few strategies that bolstered our Q2 results were, one, curating relevant WOW newness in our assortment. Two, simplifying our pricing to whole price points highlighting value. Three, improving in-stocks and flow of product throughout our network of stores. And four, initiating marketing campaigns fueled by creator content. These actions drove total sales growth of nearly 24% to over $1 billion and a comparable sales increase of 12.4%. Very notable was our comparable transactions increase of 8.7%. With strong fixed cost leverage and a disciplined expense management, adjusted EPS increased 50% to 81 cents. We also grew our store base in the quarter with 32 net new stores across 21 states. Four of these stores were among the top 25 all-time spring and summer grand openings, including our Redding, California and Columbia, Tennessee locations, which just shows the diversity of our appeal. One of our Q2 new stores in Fort Smith, Arkansas, made the top all-time openings list. Strengthening these openings for our popular grand opening marketing activities, which created a ton of fun and excitement for our customers. The real key to our success in Q2 is our commitment to our customers. We have a new mantra at Five Below. The customer is our boss and everyone from our wild town teams to our ship centers, to our amazing store crew aspires to put the customer at the center of what we do. We are all focused on simplification and collaboration across our teams to optimize our product assortment and store labor, which is contributing to better in stocks and service levels and creating a more appealing shopping experience for our customers. Now onto product. Providing fresh, trend-right quality products at amazing value is our mandate at Five Below. The second quarter was about summer fun. Be it staycations or road trips to the beach and lake, we delighted our customers with products to play, live, give, and celebrate. We were pleased to deliver broad-based performance across our worlds. Our merchants source an amazing assortment of products, including licensed must-haves with exclusive collaborations like the Stitch Surf Shop. From toys and games to loungewear, candy, beauty products, including travel necessities and more, we offer trend-right products that resonated with our customers. In tech, we continue to benefit from better in-stock positions in cables, chargers, and phone cases. Perfect at any time of year, but especially for back to school. Also for back to school, we delivered great value for teachers and kids with crafts and supplies. Parents and kids loved our iconic $5 backpacks and our expanded assortment of licensed backpacks, which were a great deal at only $7. This is a good segue into the topic of value and how we define it at Five Below. We are 100% committed to providing value for our customers. Value for us is providing unique, trend-right, quality, wow products at amazing price points. Against a backdrop of higher prices industry-wide due to tariffs, we are laser-focused on ensuring a compelling value proposition for our customers. Specifically, in the second quarter, we executed our planned strategic pricing changes to whole price points in order to simplify the shopping experience for our customers and execution for our store crew. The majority of items outside of our candy world are now priced at one, two, three, four, and five dollars. We've also been selective in assorting products above $5 that represent great value for money. To date, we've been very encouraged by the customer response to the implementation of our pricing strategy. On store experience, our simplification strategy is key to enhancing our customer experience and making our stores easier to operate for our crew By streamlining assortments and pricing, we see immediate and long-term operational benefits across the supply chain, in stores, and within our visual and marketing teams. With a focus on newness and conviction buys, our shelves are stocked with the latest trend products, and our stores are cleaner and more appealing with reimagined displays. Improved inventory flow has led to better in-stock positions, ensuring the right product is available at the right time and place to help bolster sales. On to marketing. We see an opportunity to better connect with our customers both in-store and digitally to elevate the Five Below brand and increase our brand awareness. We are letting our customers know We're a go-to destination to help them celebrate. Focus on six curtain-up moments we've discussed with our Halloween and the all-important holiday season up next. In the second quarter, we connected with our customers with a continued focus on value and end-to-end storytelling from social to in-store. We leaned into creator content with viral product moments and we believe this is driving visits from both new and existing customers. We are pleased with the progress we've made over the last several months and excited to further capitalize on the opportunity to better connect with our customers and grow awareness. Now, as we look forward in an ever-changing tariff environment, our teams continue to work very closely with our partners optimize our inventory availability and receipt flow for the balance of the year. We are all working incredibly hard to control the controllables, mitigate risks, and drive sales through continued executional excellence. We believe that we are in a strong position heading into the fall with exciting plans for both Halloween and holiday. We are the destination for the kid and the kid in all of us. The cool store for kids and the yes store for parents. Our mission remains to offer amazing, trend-right product at extreme value to help our customers throughout their life stages to play, live, give, and celebrate. With that, I'll turn it over to Ken for the financial update. Take it away, Ken.