Five Below (FIVE) delivered "better than expected" fiscal Q2 results and raised its full-year outlook, showing "continued" sales and earnings momentum despite tougher comparisons and a weaker discretionary spending environment, Oppenheimer said in a report Thursday.

Adjusted earnings per share rose to $1.68 from $0.81 a year earlier, topping the $1.40 consensus estimate and the company's $1.23 guidance. Comparable sales increased 14.1%, above the 10.4% consensus estimate and the company's 7% to 9% forecast, the firm noted.

The firm said transaction growth accounted for about 13 percentage points of the comparable-sales expansion. Five Below raised its fiscal 2026 adjusted earnings outlook to $9.83 to $10.31 per share from $8.65 to $9.05 and increased its comparable-sales growth forecast to 10% to 12% from 6% to 8%, the report noted.

Oppenheimer has a perform rating on Five Below, adding that the company remains one of the "few names" in its consumer growth and e-commerce coverage navigating the weaker macro environment relatively well.

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