02:57 PM EDT, 08/25/2025 (MT Newswires) -- Five Below's ( FIVE ) is expected to report a "strong set" of Q2 results, UBS Securities analysts said Monday, adding they believe the specialty discount retailer can sustain sales growth as well as "margin outperformance" into H2 and beyond.

With a forecast of an 8% increase in comps and earnings per share of $0.63 for Q2, the investment firm said better-than-expected sales flow-through could boost operating margin by at least 20 basis points, positioning the company for upside in H2 even with tariff pressures.

Five Below ( FIVE ) is due to report fiscal Q2 results on Wednesday after markets close.

UBS said it believes the company can deliver earnings above $5 per share in 2025 and approach $6 in 2026. Analysts surveyed by FactSet expect $4.73 for 2025 and $5.23 for 2026.

Five Below ( FIVE ) has increased prices on about 15% of its products, but demand has held up well, and the company has finished making pricing changes to help absorb the impact of higher tariffs, the report said.

The firm maintained a buy rating on the stock with a price target of $160.

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