Travis Sherman's questions to FIVE BELOW (FIVE) leadership • Q2 2025
Question
Travis Sherman of Truist Securities, on for Scott Ciccarelli, asked if the elimination of the de minimis exemption for competitors like TEMU created 'orphan sales' for Five Below and if Q2 gross margin benefited from pricing actions ahead of higher-cost inventory.
Answer
CEO Winnie Park acknowledged there was 'probably some impact' from the de minimis change but stated it wasn't a major factor due to Five Below's differentiated in-store experience for kids. Interim CFO & COO Kenneth Bull confirmed that learnings from the positive customer response to Q2 pricing are factored into the Q3 guidance.