Five Below Plans Puerto Rico Stores for 2027 Expansion

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Five Below plans to enter Puerto Rico in the second half of 2027 with a handful of initial stores.

Second-quarter net sales rose 22.9% to $1.26B, while comparable sales increased 14.1%.

The retailer ended the quarter with 2,022 stores and is keeping its 2026 plan for about 150 net new locations.

Five Below is preparing to enter Puerto Rico as its store fleet moves beyond 2,000 locations. CoStar's report on the retailer's next expansion market says the chain plans a handful of Puerto Rico stores in the second half of 2027. Management described the territory as a strong customer fit with attractive real estate opportunities. The rollout will remain measured.

Five Below reported second-quarter fiscal 2026 net sales of $1.26B. That was up 22.9% from $1.03B a year earlier. Comparable sales increased 14.1%, and the company said results exceeded its expectations.

CEO Winnie Park credited a customer-focused strategy and operating-model changes. She said merchandise trends across room decor, toys, technology, and snacks performed well. Trend-driven products included squishy dumplings, collectible fidget toys sold in mystery packages.

Park said the company has built a repeatable process for spotting merchandise trends, marketing them, and carrying those themes through the store experience. Management also said new stores continue to perform strongly.

Five Below's concept centers on toys, candy, home decor, sporting goods, party items, and other trend-driven merchandise. Most items are priced from $1 to $5.

Five Below opened 52 net new stores during the quarter and ended with 2,022 locations in 46 states. That was an 8.8% increase from the end of the prior-year quarter.

Five Below's discount store expansion continues after its fleet passed 2,000 locations in July.

The 2,000th store opened in July at 299 Commerce Ave. in LaGrange, Georgia. In August, the retailer entered Idaho, its 47th state, with a store at Nez Perce Plaza in Lewiston.

The state expansion shows how the chain is still filling geographic gaps even before Puerto Rico. By late summer, Five Below had reached 47 states while continuing to add locations inside existing markets.

Park said Puerto Rico offers a customer base that fits Five Below's mix of kid-focused merchandise and value pricing. The company sees no direct local retail concept offering the same combination.