Five Below, Inc.: Five Below is a specialty value retailer founded in 2002 by David Schlessinger and Tom Vellios. It reported $4.764B in fiscal 2025 net sales, $358.6M in net income, and 1,921 stores across 46 states.
Five Below Key Facts
- Founded: Five Below was founded in 2002 by David Schlessinger and Tom Vellios. The company opened its first store in the greater Philadelphia area and built a specialty value format around products mostly priced at $5 and below.
- Headquarters: Philadelphia, Pennsylvania
- CEO: Winnie Y. Park
- FY2025 revenue: $4.76B
- Disclosed profit metric: $358.6M
- Employees: 24,600
How Five Below Makes Money
Five Below operates a company-owned store model built around high-traffic shopping centers, low-priced impulse merchandise, frequent assortment changes, private-label and licensed products, and a compact store format. Stores are the core revenue engine, while digital channels support convenience and customer engagement.
- Company-Operated Store Sales: Most revenue comes from merchandise sold in Five Below stores across high-traffic shopping centers.
- E-Commerce and Pickup: Digital sales through the website and app, including home delivery and buy-online-pick-up-in-store.
- On-Demand Delivery Partners: Third-party delivery availability extends convenience for selected local purchases.
Five Below History
David Schlessinger and Tom Vellios incorporated the company in January 2002 as Cheap Holdings and changed the name to Five Below in August 2002. The idea was simple but powerful: create a place where young customers could say yes to a wide range of fun products because most items cost $5 or less.
- 2002 - Five Below Founded: David Schlessinger and Tom Vellios found the company and open the first store in the greater Philadelphia area.
- 2012 - Initial Public Offering: Five Below completes its IPO and begins trading on Nasdaq under the ticker FIVE.
- 2016 - E-Commerce Launch: Five Below launches e-commerce, adding digital reach to the store-led model.
- 2024 - Winnie Park Becomes CEO: Winnie Y. Park joins Five Below as president and CEO in December 2024.
- 2026 - 1,921 Stores: Five Below ends fiscal 2025 with 1,921 stores across 46 states and $4.764B in net sales.
Strategy and Risks
Five Below competes with dollar stores, mass merchants, off-price retailers, toy stores, specialty chains, and online marketplaces. Its lane is narrower: a curated, fun, low-ticket trip that encourages impulse buying and repeat visits.
Five Below plans to open about 150 net new stores in fiscal 2026 and says it sees a long-term opportunity for more than 3,500 U.S. stores. The outlook depends on comparable sales, new-store productivity, merchandising quality, and the cost environment.
Five Below FAQs
What was Five Below's revenue in FY2025?
Five Below reported $4.76B in FY2025 revenue. The figure is sourced from primary filings, annual reports, or official company disclosures.
How many employees does Five Below have?
Five Below reports about 24,600 employees or associates in the latest sourced disclosure used for this profile.
Who leads Five Below?
Winnie Y. Park leads Five Below.
When was Five Below founded?
Five Below was founded in 2002 by David Schlessinger and Tom Vellios. The company opened its first store in the greater Philadelphia area and built a specialty value format around products mostly priced at $5 and below.
How does Five Below make money?
Five Below makes money primarily from merchandise sales in company-operated stores, with smaller contributions from e-commerce, buy-online-pick-up-in-store, and delivery channels.
Is Five Below profitable?
Five Below reported $358.6M in FY2025 net income or profit attributable to owners.
What is Five Below's biggest strategic issue?
The biggest issue is proving that new-store growth, higher price points, and merchandising resets can keep comparable sales healthy while tariffs, wages, rent, and freight costs pressure margins.
