How FIVE Is Capturing New Customers and Driving Repeat Visits?

Five Below, Inc. FIVE is driving customer acquisition and loyalty through a customer-centric strategy that blends strong digital engagement with an evolving in-store experience. The company is increasingly leveraging social listening to better understand customer preferences and capitalize on emerging trends. Management highlighted opportunities across several categories, including squishy products, candy, beauty programs and beauty dupes, where customer conversations are helping shape merchandising and engagement strategies.

The company is benefiting from improved customer acquisition through connected TV initiatives and greater marketing agility enabled by AI-generated content. These efforts are helping Five Below engage younger audiences more effectively through the channels they increasingly use. In the first quarter of fiscal 2026, comparable sales increased 22.7%, driven by a 19% rise in transactions and a 4% increase in average ticket size, reflecting strong customer traffic and engagement.

Five Below remains focused on introducing products that deliver meaningful value while satisfying customers' desire for novelty and fun, rather than simply expanding its assortment. Supported by a new cross-functional go-to-market process, teams are creating impactful launch moments around key seasonal events. The company also strengthened customer engagement through in-store activations, including celebrations of the 30th anniversary of Pokémon on National Pokémon Day across its store network.

Additionally, Five Below made significant progress in expanding its email database during the quarter. This enhanced customer data foundation is expected to improve the precision of social and digital marketing efforts, deepen customer engagement and foster more personalized relationships with consumers. Overall, management believes its investments in customer engagement, social listening and personalized marketing capabilities position the company to deepen customer relationships and support continued traffic growth over time.

The Zacks Rundown for FIVE

The company's shares have gained 55.7% in the past year against the industry's 5.7% decline. FIVE currently sports a Zacks Rank #1 (Strong Buy).Zacks Investment Research

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From a valuation standpoint, FIVE trades at a forward price-to-earnings ratio of 20.91, higher than the industry's average of 14.67.Zacks Investment Research

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The Zacks Consensus Estimate for FIVE's current and next fiscal year earnings implies a year-over-year rise of 31.8% and 10.4%, respectively.

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Other Stocks to Consider

Some other top-ranked stocks have been discussed below:

Victoria's Secret & Co. VSXY operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY flaunts a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Victoria's Secret's current fiscal-year sales and earnings suggests growth of 8.8% and 53.7%, respectively, from the year-ago reported numbers. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.

Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for TPR's current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for FOSL's current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.

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