Five Below, Inc.

Good day and welcome to the Five Below Third 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 Christiana Pels, Vice President, Investor Relations. Please go ahead.

Good afternoon, everyone, and thanks for joining us today for Five Below's Third Quarter 2025 Financial Results Conference Call. On today's call are Winnie Park, Chief Executive Officer, and Dan Sullivan, 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 US 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 Winnie.

Hello, and thanks so much for joining us. We're excited to share our third quarter results which exceeded our expectations. Before we do, I want to extend a warm welcome to our two new leaders, Dan Sullivan, our Chief Financial Officer, who you'll hear from shortly, and Michelle Israel, our Chief Merchandising Officer, both of whom joined us in early October. Dan and Michelle are seasoned, highly experienced executives who've integrated into our amazing Five Below management team incredibly well. We're excited to support their contributions as we continue to grow and redouble our efforts to amplify our unique value proposition. I would also like to thank Ken Bull, who served as interim CFO for his amazing partnership. We're excited to have Ken transition back into his role as COO as we enter the critical holiday season. Now, turning to our fantastic results. In Q3, we delivered our second consecutive quarter of over a billion dollars in sales and double digit comparable sales growth. Our customers continue to recognize BiBelow as the destination for the kid and the kid in all of us. I'm really proud of the work our teams are doing in support of our boss, the customer. We are seeing clear proof points that our customer centric strategy is working. And as a result, we've taken up our outlook for the remainder of the year. which Dan will discuss in more detail shortly. In Q3, net sales grew 23%, with comparable sales growth of over 14%, driven by both transactions and tickets. With disciplined expense management, adjusted diluted earnings per share grew 62% over last year to 68 cents. Store growth continued to be strong at 9% over last year, We welcomed 49 net new stores to the Five Below family, including our new store in Rogers, Arkansas, which became our best ever fall grand opening. And we ended the quarter with over 1,900 stores. The success of our new store openings continued into the fourth quarter with our entry into the Pacific Northwest, where each of our eight new stores set all-time grand opening records. Notably, All these grand openings were supported by marketing and in-store activations that drew thousands of customers on opening day. The strong, positive reception to Five Below in these new markets strengthens the conviction we have for the significant growth ahead of us. The results in the quarter again exceeded our expectations, and we were very excited to see broad-based growth across merchandising departments and our entire network of stores. This growth is the result of maniacally executing our customer-centric strategy, which is supported by three core pillars. The first pillar is a sharpened focus on the customer, the kid. And for us, this means understanding the trends, life stages, and how to influence Gen Alpha, Gen Z, and Millennials. We deepened our understanding of what our customer wants, how we can build connections with them, and ultimately how they shop our stores. This relationship with the customer is our true north and underpins our merchandising, marketing, and store operations approach. The second pillar is delivering a connected customer journey, acknowledging that awareness begins on digital channels and social media and ends with an amazing in-store experience. By curating compelling stories in social, that lead our customers to pre-shop on our website, culminating in a trip to our stores, the customer should see our big ideas come to life with a consistent look and feel. The third pillar is coordinated cross-functional execution in our go-to-market for our six curtain-up moments from New Year's and Valentine's to holiday. The way we work has fundamentally changed as the team aligns earlier resulting in the full engagement of our 1,900-plus store managers prior to launch on merchandising, marketing, and the critical flow of newness to our stores. Underpinning these pillars is a mindset of operating with urgency and discipline, as we saw in our tariff mitigation efforts earlier in the year, while also remaining relentless in our focus on efficiency. We now operate with an approach of test, learn, and ramp to quickly introduce new products, price points, and processes. Test, learn, and ramp ensures that our bias towards action is also informed by insights and analysis. To achieve our results, the crew across Five Below pulled together as a unit, a true team who shared one focus, the customer, our boss. I'm incredibly grateful for our team's passion, grit, and all-in engagement on working cross-functionally. and service of our customers. Their hard work and commitment delivered these results. Thank you, Five Below crew. In Q3, our customer-centric strategy allowed us to deliver a sharpened value proposition. Our merchandising teams were unleashed to deliver a continuous flow of newness across product categories. We weren't reliant on a single trend, as the majority of our departments comped positive. Also, we took a disciplined approach to curation and managing the breadth and depth of our buys, resulting in better end stocks for our big ideas throughout the season, like Halloween decor. With the focus on big ideas, such as hero license programs, the merchandising teams coordinated to deliver unified statements, like Wicked, which incorporates products from nearly every merchandising category. Also, our merchandising teams are relentlessly focused on value and simplifying our pricing. Today, value is not just about $5 and below, but ensuring we pack value into 7, 10, and $15 plus items. We are able to incorporate these multiple price points throughout the departments and the store to simplify the shopping experience, and our customers have responded well. This change allowed us to disband the Five Beyond area and leverage this space to drive seasonal business. For example, we featured the last gasp of summer in that area with back to school in the front when we kicked off the quarter. The newness and curated product stories that our teams merchandise were amplified by more effective marketing as we shifted our marketing channels and content to be more relevant for our target customers. We increased our investment in social media, moving spend away from traditional channels, resulting in traffic growth both online and in our stores. We also changed our content development strategy from studio produce to creator produce, engaging social influencers and amplifying user-generated content. We also renewed our creative online and in stores to deliver a single campaign with a distinct brand right look and feel. The third quarter results are a real testament to our store crew, who have embraced the mantra that the customer is our boss. The stores are where customer experiences come to life. We improved the store experience in several ways, namely better collaboration with our store teams, garnering better feedback from customers, simplifying operations, and investing in labor to ensure our shelves are stocked. enabling the product stories to come to life. The execution of our strategy accelerated from Q2 to Q3. This flywheel effect is evidence in our sales results, which were driven by growth in transactions and tickets. We packed the quarter with two big curtain-up moments, back to school and Halloween. We flowed newness throughout the store, with a focus on ideas we were able to test and ramp. Again, the key to our execution is the way we work cross-functionally with tight coordination between merchandising, supply chain distribution, marketing, and stores. This tight coordination also made the difference in our growth via new stores. Our 2025 fleet is exceeding expectations as we worked as a close-knit team for the ultimate curtain up, a store grand opening. we invested in grand opening marketing and activations in stores that were fully merchandised and crews who were well-staffed and better trained. Looking ahead, the strong performance over the previous three quarters serves as a valuable proof point that our customer-centric strategies are starting to work. As we prepare for the holidays, we will continue to surprise and delight our customers with unbelievable deals for decor, gifts, and stocking stuffers, from gingerbread houses and advent calendars to an army of large nutcrackers, beauty bundles, toys, and candy. Our performance is a testament that our unique place in retail of being the destination for the kid and the kid in all of us is a compelling, sustainable value proposition. While we are at the early stages of our journey, our progress to date is clear. And the team and I are highly committed to and extremely excited for the growth that lies ahead for our business. With that, I will turn it over to Dan to discuss more details about our results and updated outlook for the fourth quarter and year. Take it away, Dan.