Five Below raised its fiscal 2026 guidance after second-quarter results exceeded analyst expectations. Adjusted earnings reached $1.68 per share, beating the $1.38 estimate, while net sales rose 23% year over year to $1.26 billion. Comparable sales growth continued for a fifth consecutive quarter, with two-year stacked sales up 26.5%, driven mainly by higher transactions and strong traffic. Adjusted gross margin expanded 220 basis points to 35.6%, and adjusted operating income more than doubled to $113 million. The company opened 52 net new stores, entered Idaho as its 47th state and ended the quarter with 2,022 locations. Five Below raised its fiscal 2026 adjusted EPS outlook to $9.83-$10.31 and sales forecast to $5.63 billion-$5.71 billion, authorized a new $600 million share repurchase program and provided third-quarter guidance above analyst estimates. Shares were up 5.73% at $257.02 in Thursday premarket trading.