Officer, and Daniel Sullivan, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions. Certain comments made during this call may constitute forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements, including those described in the press release and our SEC filings. In this presentation, we will refer to our SG&A expenses, which for us includes depreciation and amortization. Additionally, we will be discussing certain non-GAAP financial measures. Please review today's press release, which is posted on our investor relations website, for a reconciliation of these items to the most directly comparable U.S. GAAP measure and a cautionary statement regarding forward-looking statements. I will now turn the call over to Winnie. Thank you, Christiane, and hello, all. I want to start by saying how grateful I am to our amazing Five Below crew. They have executed our strategy at an exceptional level by staying laser focused on what matters most, the customer, our boss. Our Q1 results are a testament to their great work, which reflects our operating flywheel in action and demonstrates the traction we've made in transforming our business and strengthening our position as the destination for the kid and the kid in all of us. For the Q1, we're reporting results that exceeded our expectations, with sales growth of nearly 33% to $1.3 billion, driven by 23% comp growth and strong new store performance, including 49 net new stores that opened during the quarter. Adjusted EPS of $2.22 per share grew over two and a half times compared to the Q1 of last year. With this positive momentum, and despite an expected more challenging macro environment as the year plays out, we're raising our full year outlook, which Daniel will discuss shortly. Our outside sales growth in the quarter was driven by three key factors. First, we continue to see the customer reacting favorably to our strategy and the changes we made to our operating model. We often talk about the three legs of a stool that support our unique value proposition. The first leg is curated product storytelling focused on newness and amazing value across our assortment. Second, meeting the customer where they are with relevant marketing and social and digital media. Third, easier and funner shopping experiences in our stores, which offer better in-stock positions and streamlined pricing. Importantly, we operate as a real team, galvanizing all of our corporate ship centers and stores in six curtain-up moments that celebrate the seasons and milestones in our customers' lives. The second driver of our sales growth was engaging in social trends to amplify their virality. While we have benefited from trends in the past, we are now able to actively engage with our customers through social media, direct marketing, and finally, with in-store activations. Our marketing toolkit is expanding, and with the adoption of social-first approach, we are so much more reactive and relevant in messaging and engaging with our Gen Alpha, Gen Z, and millennial mom communities. Third, we benefited from customers spending their higher tax refunds. We leveraged our position as a value retailer to make fun and newness accessible to all. We continue to push ourselves to deliver aspirational product stories at very accessible price points. Importantly, our growth was broad-based, with 15 of 18 departments comping positively. Games and toys were particularly strong, driven by collectibles and the overall squish trend. We again grew in all districts, all vintages of stores, and across all income cohorts. The comp growth was disproportionately driven by transactions, up 19%, with ticket up 4%, reflecting strong traffic, customer engagement, and continued success in our value proposition across price points. This reinforces what we've consistently said, our strategy is not reliant on a single product or trend, but rather driven by a full assortment of products at great relative value and supported by strong execution. Identifying and capitalizing on trends is a core and growing capability at Five Below, and one that our newer, more impactful marketing strategies and campaigns enable us to amplify, as we did with the authentic RMS Squishy Dumplings. Leveraging our enhanced social activation capabilities and working with more agility cross-functionally, we fueled a cultural zeitgeist that has reinforced the strength of our brand with our core customers while also introducing the brand to new customers. This end-to-end approach, from detecting a burgeoning trend to amplifying it in social, to creating an amazing in-store experience, that's our special sauce. We're just getting started with how much more we can do here. Our teams remain laser focused on consistently executing against our core pillars, the three Cs. One, staying maniacally focused on our target customers. Two, delivering a connected customer journey from social to in-store. Three, collaborating cross-functionally to enhance execution. This focus allows us to deliver amazing new products packed with compelling value, engage with our customers on social media and digital, and execute consistently at a high level. On merchandise specifically, we differentiated our offering through trend-right newness at amazing price value. The popularity of candy, beauty, and toys helped fulfill Valentine gift needs and fill Easter baskets. Our robust games and toys growth in the quarter further evidence our role as the greatest little toy store in America. Our focus on curating licensed products led to an exclusive collaboration with an old favorite, Winnie-the-Pooh. Value remains a critical component to our offering, and we believe our customers recognize the compelling value we provide, whether it be at $5 and below, our foundation and the vast majority of our products, or $6 and above. We're very disciplined about ensuring it's not just another product on the shelf, but something that delivers wow value and really speaks to our customer's need for newness and fun. With our new cross-functional go-to-market process in place, the teams focus on bringing the products to life by delivering curtain-up moments for Valentine's and Easter. We also hosted in-store activations to help our customers celebrate special moments, such as the 30th anniversary of Pokémon on National Pokémon Day in our entire network of stores. In terms of marketing, as I mentioned earlier, we engaged our customers in social with creator content highlighting trends, newness, and viral moments. We also deployed amazing AI content and Connected TV commercials focused on seasonal moments. During the quarter, we made great progress building an email database, which will sharpen our ability to direct social and digital marketing content to better engage with our customers and develop a more personalized relationship with them. Across our fleet, we host fun treasure hunt shopping experiences for the whole family. Our labor model is designed to ensure in-stock positions while we simplify pricing structure and improved visual presentations have made our stores easier to shop. We've largely completed integrating Five Beyond product in line in their appropriate worlds. We are now testing layouts and designs within the store to further strengthen the shopping experience while improving sales. To wrap up, I'm really excited about our Q1 results. They demonstrate the strength of what we've built and the progress we're making in staying maniacally focused on our customer. We're just getting started with what we can do across merchandising, marketing, and the store experience. More to come, but we are confident that the strategies we've put in place will enable us to deliver sustainable growth on the top and bottom line and drive long-term value creation. With that, I'll turn it over to Daniel. Thanks, Winnie. Good afternoon, everyone. I'd like to start by also thanking our crew for their incredible focus on serving our customers. In the face of growing macro challenges and an increasingly cautious consumer, our results exceeded our expectations in the quarter and further reinforced the strength of our unique retail concept. For the Q1, net sales increased nearly 33% to $1.3 billion, supported by a strong comparable sales increase of approximately 23%. On a two-year stack basis, comp sales grew approximately 30%. Q1 represented our fifth consecutive quarter of positive comp sales growth and fourth straight of double-digit growth, with widespread increases in new and retained customers, as well as across all income cohorts. Growth across games and toys was noteworthy, underpinned by strong support in squishy trends and collectibles. We opened 49 net new stores across 25 states, compared to 55 new stores in the Q1 last year. We grew our store count by 8% year-over-year and ended the quarter with 1,970 stores. As Winnie mentioned, we were very pleased with the performance across our fleet, as growth rates were similar across all classes of stores. Adjusted gross profit increased 46% to $479 million or 37.2% in rate of sale, an increase of approximately 340 basis points compared to Q1 last year. Adjusted SG&A expenses totaled $324 million, or 25.2% in rate of sale, a decrease of approximately 250 basis points compared to Q1 last year. This was primarily driven by fixed cost leverage on the strong comp sales, partially offset by increased incentive costs and higher store labor related to the April physical inventory counts. The profit flow-through on our sales growth was strong. Adjusted operating income grew 160% to $155 million, and adjusted operating margin increased approximately 600 basis points to 12%. Net interest income was $8 million, or $2 million above last year, primarily due to a higher average cash balance throughout the quarter. Adjusted net income for the quarter grew 160% to $123 million and adjusted earnings per share increased 158% to $2.22. We ended the Q1 in a strong cash position with approximately $1.1 billion in cash equivalents, and investments. Inventory was $813 million at the end of the Q1, an increase of approximately 16%, with a commensurate 10% increase in units. Average inventory per store was up 7% at the end of Q1. The increase in inventory reflects both opportunistic buying during this favorable tariff environment and taking the appropriate steps to ensure seamless flow of product amidst a more challenging global supply chain environment. Overall, we believe we're in very good inventory position heading into the summer and holiday periods. Now, I want to turn to our expectations for the remainder of the year. We're very pleased with our Q1 performance and remain highly convicted in our ability to continue to generate durable, sustainable growth. At the same time, we remain cautious with respect to the macro environment, consumer sentiment, and buying behaviors. As such, we have left our half two comparable sales assumptions unchanged from our previous guidance. On tariffs, we have now flowed through the estimated benefits from the 10% global tariff rate that is in place through July 24th. We continue to assume that the tariffs will then revert to the rates that were in place at the beginning of the fiscal year. I'd like to also point out that our guidance does not assume any impact from IEEPA tariff refunds. With this as context, I'll now turn to our outlook. For the Q2, we are raising our previous implied outlook. We now expect total sales in the range of $1.18 to $1.2 billion, or growth of 16% at the midpoint versus last year's Q2, with comparable sales growth between 7% and 9%. We expect to open approximately 50 new stores in the Q2, compared to 32 last year. Adjusted operating margin at the midpoint is expected to be 7% versus 5.4% in the Q2 last year, with 160 basis point increase driven by gross margin expansion, partially offset by higher SG&A. Adjusted gross margin in the Q2 reflects higher merchandise margins, fixed cost leverage, and a lower shrink accrual, partially offset by the effect of higher supply chain and fuel costs on outbound transportation. Adjusted SG&A is expected to de-leverage slightly as the benefits of leverage are more than offset by increased marketing investment and increased store labor due to the timing of physical inventory counts. Net interest income is expected to be approximately $8 million for the Q2, and the effective tax rate is expected to be approximately 25%. Adjusted net income is expected to be $68 million at the midpoint, or an increase of 52% versus Q2 last year. Adjusted diluted earnings per share at the midpoint is expected to be $1.23 compared to $0.81 last year. For the full year, our guidance for sales reflects the outperformance we delivered in the Q1 and the improved sales outlook for the Q2. We expect operating margin expansion to be driven by gross margins, with SG&A rate of sale now expected to be flat to 2025. Full-year sales are expected to be in the range of $5.4 billion-$5.48 billion, an increase of 14% at the midpoint versus last year. Comparable sales growth is expected to be between 6% and 8%, or nearly 20% growth at the midpoint on a two-year stack basis. Adjusted operating margin is expected to increase 170 basis points to 11.6% at the midpoint, driven by gross margin expansion. Versus our prior guidance, the operating profit flow-through from the increase in sales is partially being offset by higher incentive costs. We've largely mitigated higher operating costs across the supply chain, including fuel-related headwinds, primarily through the lower tariff rates and increased efficiencies in our distribution centers. We expect net interest income of approximately $31 million and a full-year effective tax rate of approximately 25%. Adjusted diluted earnings per share is expected to be $8.85 at the midpoint on 55.7 million shares outstanding or growth of 33% versus 2025. Capital expenditures are still expected to be between $230 and $250 million, excluding the impact of tenant allowances, which reflects approximately 150 net new store openings and increased investments in technology and infrastructure. In summary, we're very pleased with the performance of the business. We remain focused on executing at a high level and continuing to deliver on our top and bottom line growth strategies. With that, I'll hand the call back over to the operator to start the Q&A session. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please limit yourself to one question, if you have further questions, you may re-enter the question queue. At this time, we will take our first question, and that will come from John Heinbockel with Guggenheim. Please go ahead. Hey, Winnie, can you talk to the results you're seeing, they are obviously incredibly strong, particularly as it relates to traffic. Can you talk to brand awareness? Maybe brand awareness around certain elements of your go-forward strategy and the degree to which you're acquiring new customers, because it would appear that. You're acquiring them at a much more rapid pace than even you had six months ago. Thank you. Thanks, John. Thanks for your question. A really good one. We actually did see really great lift this quarter out of transactions driven by traffic and actually nice double-digit growth, both in new customers as well as retained. I think we're actually in the early innings with marketing and growing our awareness. Our awareness still remains, both aided and unaided, remains pretty low relative to our competitors. We've just started this journey. I think what we're very pleased with is the fact that we're making good strides, and it was really the switch in our marketing strategy, moving from more traditional marketing and directing our media spend into social. Coupled with that, we have really tried to build our customer database and to ensure that our stores are capturing customer emails, because that just makes us that much more effective, both in driving the appropriate media messages to our customers, but also, hopefully, growing a lifetime relationship with them and eventually being able to personalize our reach outs to them. Traffic has been tremendous, and we certainly had a nice lift. Our messaging resonated with our customers in social, and it was across Valentine's, Easter, our health and fitness trends, which focus on Pilates, all the way through to squishy things and Squish Dumplings. Really pleased with the initial results we've seen. Thanks, John. The next question will come from Matthew Boss with J.P. Morgan. Please go ahead. Great, thanks, and congrats on another nice quarter. Two questions. Winnie, with four straight quarters now of double-digit comps, could you touch on foundational changes you've made, which you think provides confidence to comp the comp? I guess how best to think about merchandise opportunity remaining across your worlds today, and can you just touch on the momentum that you've seen continue so far in May? Thanks so much for the question, Matthew, and it's a really, really good one. We feel really good about the strategy we put in place and what we think is a lot of dry powder in order to go after continued growth of the top line. I have a simple saying around here at the office, and it's, "Sales solve problems." I'm a tried and true merchant, and I'm incredibly excited about the momentum I see in the business, but also what our merchants have brought to the table. We have taken what used to be a very item-focused merchandising approach to really an assortment merchandising approach, looking across assortments, targeting our core customers, and really thinking through how do we tell stories around the product. I think it's the combination of that product storytelling being maniacal about continuing to refresh the product lines, because that is what our customers are voting for, also making sure that we've got compelling value. The majority of our assortment, over 80%, is still $5 and below. We did switch to simplify pricing, those full price points are much easier to shop. Frankly, it's a lot easier to merchandise to as well. As we look at price points above $5, we've seen really great resonance because we pack so much value into anything that's above five. We also abolished the Five Beyond section, moved that product in line, we've actually seen that product perform better because it's basically merchandised the way the customer wants to shop the product. If you have a $35 gilt floor mirror, it's in the room section and not tucked away in the back of the store. All of those changes have made a real difference. We also, in terms of store execution, we're very focused on these six curtain-up moments, and what it has done is galvanize the organization to work together to make sure we've got the right product at the right place at the right time, in-stock levels are good, and that our stores are educated about the product stories that they're going to be hosting for all of our customers. All of that has been foundational work. We have a ways to go, early innings, in terms of what more we can do, both in terms of marketing via database, via social. In terms of merchandising, and specific to your question, I am really excited about the newness that I see and the opportunities we have in every single world. We had outsized growth this quarter in terms of toys, collectibles, and games. I also see so many green shoots and so much strength across the assortment, from beauty to fashion, and very, very strong food and candy business that continues to be a cornerstone for us at Five Below. A lot ahead of us, and I think the big thing with my coming here, we've unleashed the merchants. The vendors really do love us, and we've worked very hard to diversify that vendor base. I think we've got a lot ahead of us in terms of growth, and I feel very confident about our ability to comp. Thanks so much, Matthew. The next question will come from Michael Lasser with UBS. Please go ahead. Good evening. Thank you so much for taking my question. A, is there a way that you can quantify some of the unique contributions to the comp from things like Squish Dumplings or Pokémon that may be more trend related and not necessarily continue for an extended period of time? B, could you break down some of the unique costs that you are experiencing today, such that if the market were to assume you comp flat as you anniversary some of these strong growth rates We can get a baseline of what Five Below's earnings outlook would be, even a more conservative scenario as you get into 2027. Thank you so much. Thanks for the question, Michael. I'll kick off and talk about quantifying the comp for Q1. I would characterize our strategy at work, the flywheel operating model, great product, great value, stores that look great, are fun to shop, easier to shop, as well as our ability to really engage with customers via social media. I would quantify that as being high single digits in terms of kind of run rate and what we're seeing. In addition to that, we had a quarter where we enjoyed the benefit of higher tax refunds that the customers spent with us. That was terrific. The final thing is, everyone's been talking about the Squishy Dumpling, and what's really interesting to me about this particular trend, because we've always had cyclical trends in the business that come in and out, is not the what, but the how. I think that the big driver of how this trend went from zero to hero was, one, our doing a lot of social listening, seeing what was popping. Two, amplifying, reposting, and then engaging with customers. Three, really thinking through not just a dumpling, but a full assortment of squishy things. That has driven some really nice traffic, and we're going to continue to use that mental model to drive traffic in the future. We're constantly looking at what next trend can we amplify. The good thing about our business today, however, is that, again, we've got an assortment business. Every world is working very well and comp positively, and we continue to drive what new ideas are out there in every single world, and then how can we talk and engage with our customers about it. That is really a new tool for us. I'll let Daniel speak to cost. Yeah. Hey, Michael. Thanks for the question. I would probably highlight two topics to your question on the cost profile. I think one is clearly transitory, and that is around the supply chain, and in particular, the rising cost of fuel and the rising cost of diesel fuel per gallon. We've sized that for the year at 20 to 25 basis points of an increase. Important to note, though, within our outlook for the year, we have fully offset those costs through a combination of better tariff cost flow-through and better productivity and efficiency across our distribution centers. That's clearly, to your point, one of the outliers. Then I think the second one that I would highlight, which is absolutely intentional, is around the marketing investments that we are making. Winnie has described so much of the incredible outcomes that we are seeing, and that's coming from our stated desire to really feed this capability. It's about a 20 to 25 basis point year-over-year increase this year. The beauty of that is we're seeing terrific returns. If we get to a place in whatever circumstance, hypothetically, where we are in a more challenged environment, we would obviously be able to pull that back as well. Hopefully that answers your question. The next question will come from David Bellinger with Mizuho. Please go ahead. Hey, everyone. Thank you for the questions. I want to ask you about the trading card category, something that's very on trend right now. Is that an opportunity to chase product, and can you talk about any conversations you've had with larger brands or manufacturers to get even more allocation across the store base? Thank you. David, trading cards are a great business driver for us. We were really happy with the results of our National Pokémon Day. We are definitely looking at further opportunities to chase Pokémon, but other trading cards. That is actually one of the trends that has a more enduring effect. What I'm also seeing is that we're just looking at what does that mean beyond just the trading cards and looking at the impact of anime collectibles in growing those assortments accordingly as well. It's something that we are looking at very carefully and having daily discussions about increasing supply. Thanks so much for your question. The next question will come from Edward Kelly with Wells Fargo. Please go ahead. Yeah. Hi, good afternoon. Thanks for taking the question, and congrats on really amazing results. Daniel, you mentioned in your prepared remarks around the outlook, just about a bit more caution, I guess, on the macro and the consumer. Could you just maybe give a little bit more color around why that's worked its way into sort of like your way of thinking? Is it anything that you're seeing in the business yourself currently? As it pertains to all this and the outlook for the back half, because that hasn't changed, can you just maybe talk about some of the things you might be excited about for the holiday period as it pertains to how you're thinking about the back half? Yeah, absolutely. Look, I think there's a couple of things here within the business that are worth commenting on. You've heard Winnie unpack the Q1 results. We are incredibly pleased and confident with the results that our strategy is delivering in terms of sustainable growth. We're four quarters now of double-digit growth and five quarters of comp growth, and that's a great reflection of the execution of this strategy. I think as we look forward from here, and we talked about it in our last call, we are certainly cognizant of the fact that we are cycling stronger year-over-year performance in the quarter we're in, let alone the back half of the year. That factored into our thinking as well. Half two of this year will be cycling 15% comp growth from a year ago, and we'll be doing it, having fully anniversaried the pricing activities that we initiated a year ago. As we thought about that, we see an incredibly healthy business that is absolutely delivering durable growth. We see a more challenging back half of the year, simply based on what we will cycle. That leads to the point of your question, which is the environment in which we're operating. I would say here, we're being cautious, and we're looking at the environment. We're looking at the world that our customers are living in with rising fuel costs, with very sticky inflation, with a somewhat soft labor market. We think a piece of that pain that they are feeling wasn't felt in the Q1 purely because of tax proceeds year- over- year that were significantly up. I think you have to look at all three of those together. We don't have data that would suggest there's trade-down happening. We don't have data that would suggest there's been a shift in behavior. That's certainly not what we're saying. I do think we transparently have to look at the environment we're operating in and the world our customers are living in the reality of some of the points that I made. That's how we shaped it and thought about both the near term and the back half of the year. Winnie, I'll let you talk about what you're excited about. Absolutely. Edward, I would also add to Dan's comment and say that, as he mentioned, we actually have seen growth across all of our income cohorts. I think the beauty of our model is we have a very unique value proposition that's pretty much one of one. We are a brand that is delivering a specialty experience for kids, and doing it at extreme value. The notion that the price of entry is $1 is something that we think is going to really help us gain market share as we move through the quarters and should the customer feel more pressure. With that, in holiday, it's very interesting being part of the Five Below team because one characteristic is that no one's ever satisfied. With the great holiday results that we posted last year, we walked away hindsighting 15 or 16 things we could be doing better. There are certainly things that we executed really well. I would say from a product ammunition point of view, we were still light in certain areas because of tariffs, and I think we believe we can buy back into those categories. There will be additional goodness that we couldn't necessarily afford last year. The other piece of this is that, like I said earlier, the product storytelling and bringing together really fulsome product stories that engage with the customers at the beginning of the holiday season, ending with an amazing stocking stuffer type of event. We've got a lot going, and our job is to pull it together, to make sure that it's curated and that we're messaging it correctly. We're actually quite excited. We think we've got a lot of really great dry powder for the season. Thank you. The next question will come from Scot Ciccarelli with Truist Securities. Please go ahead. Good afternoon, guys. Daniel, I think that last call you used the phrase, we're seeing what you're seeing in terms of your sales growth versus maybe what some of the 3P services would have suggested. Given that context, it appears your 2Q guide is below, I think, what we're seeing from the outside. Given the magnitude of outperformance in 1Q and what we at least believe is a higher current run rate, are you actually expecting a slowdown in the back part of the quarter, or is it more of that kind of cushion for the macro dynamics that you were earlier referencing? Thank you. No, of course. Look, let me spend a minute on how we thought about the Q2. I'm not going to get into necessarily the specifics of the quarter of where we are, but I'm happy to put some color to it and connect it to how we built the outlook. I'll start by saying we're certainly pleased with the start to the quarter. The team has executed at a very high level. You've had some interesting holiday moments, whether they be Mother's Day or grad or early summer, that certainly we're excited about, and we've seen good results. From that standpoint, off to a good start. The way the quarter shapes, though, May is the smallest of the three months. June and July is where the heavy lift is. We have a lot of work left to do here as we get deeper into summer, the heart of grad, Father's Day, Fourth of July, et cetera. We've got a long way ahead of us here in terms of the quarter. As a reminder, at this moment, we've almost entirely cycled the pricing actions of a year ago. For the back half of the quarter, rest of the year, we will have fully anniversaried that. Look, all in all, again, we're pleased with the start of it. We're about halfway through it. We have a lot to do for sure. Look, while I'm on the quarter, let me just comment for a second on the squishy event that took place in mid-May. Look, you heard Winnie describe it in her prepared remarks. It was an absolutely amazing program. Cultural zeitgeist is what we've called it. I think that's the right way to describe it. We saw tremendous response from customers, really brilliant, flawless execution from our team. If you look at that event through the lens of the Five Below brand, how we engage customers, create a unique retail moment, and ultimately execute terrific on absolutely all accounts. I would caution against the notion of this event being a meaningful catalyst to the comp profile for the quarter that we've built, right? It's a one-day event, essentially, of one item with intentionally constrained supply. I want to just make clear for everyone, it was an absolutely terrific event that was not designed to be a meaningful catalyst to the comp profile for the quarter. Hopefully that gives you a bit of color of how we thought about it. I would say the last thing is just price and the role of price, because I think Daniel mentioned this, but pricing impacts a little bit of Q2, but then we will have anniversaried it for the H2 of Q2. The next question will come from Zhihan Ma with Bernstein. Please go ahead. Hi, thank you. I wanted to ask about the traffic versus ticket dynamic with the great traffic result that you guys achieved in Q1. I'm assuming part of that is linked to squishy, wondering if there's additional color you can provide there. meanwhile, ticket growth did seem to have decelerated somewhat despite in Q1, I'm assuming you still had some tariff-driven price increases in there. was UPT down? Are people buying smaller baskets? how do we see the balance for the rest of the year? Thank you. For the Q1, Zhihan, you hit the nail on the head pretty much. The traffic, we had a couple of things going on. We saw really nice increases. We did see nice increases that were generated by all the marketing actions we took to amplify the squish trend. With that trend, we did drive footsteps that crossed the threshold, and those baskets typically are smaller than the broader baskets. That kind of explains why you see ticket not being quite as high or equally as high as other quarters. That's effectively it. With that said, one of the things that we continue to see is nice traffic lift. It really is, we think our marketing strategy is working and our ability to be agile, to really think about what's happening, reflect on those trends, react very quickly, and drive footsteps across the threshold. All good stuff. We did see a nice benefit, and a smaller basket in the quarter because of the Squish trend. The next question will come from Simeon Gutman with Morgan Stanley. Please go ahead. Hey, everyone. First question, new space productivity was outstanding. I assume part of it is how strong the core comp is. You're opening stores with product and trend that you probably didn't have in the base. How to think about it, if there's any change or things that you're doing on your side outside of the strong comp. Daniel, just to paraphrase, you left back half unchanged, but you're not seeing anything different about the consumer and some of the cost things that you cited. It sounds like they're mostly or fully offset other than increase in marketing. Thanks. Yeah, Simeon. Thanks for the questions there. On new store productivity, of course, you're right. When you see widespread growth like this, comp growth, you're going to see the step up in productivity, and of course, that's what we're seeing. I do think it's worth highlighting, we are seeing outsized performance in our 2025 and 2026 classes of stores, which directly feeds back to the strategy that we've put in place, which is we want to be incredibly good from site selection to pre-opening to grand opening to post-opening. We've intentionally shifted our approach here. It's about quality of properties and locations, not just quantity. We still are committed to the high single-digit unit growth profile, we want to do it in a really, really compelling way, and I think that's a piece of what you're seeing here as well. Then, yes, I think the way that you described it is right. I think we haven't changed our back of year outlook. We had contemplated when we spoke three months ago that we were expecting a bit of a choppy environment with our consumer and a challenging macro environment. That's certainly what we've seen play out, and I would say that has accelerated recently in the world we're operating in. I would point out, though, that holding our comps outlook consistent for the half two reflects an incredible confidence and belief in how we are running this business and delivering results, while also acknowledging that it is a challenging environment right now for our consumers. So we want to be thoughtful about that. We want to be balanced about that, which we think is the appropriate stance given the operating environment. The next question will come from Rob Holmes with Bank of America. Please go ahead. Oh, hey, congrats and thanks for taking my question. My question is, how much of online growth was a driver in the Q1, and how do you see it going forward? Was digital a bigger contributor than expected in the Q1? Is that because of the squishy trend? Just how do we think about that momentum continuing for the rest of the year? Thanks so much for the question, Robbie. We did see some nice growth online, but it's still a very small percentage of the total business. Again, this is another white space opportunity as we move forward and really think about this connected customer journey and the role of omni-channel. We are seeing nice pickup, but it's still a small percentage. Really where we have leveraged online is the social media and influencer creator marketing that we put out there. It really points most customers directly to the site, which becomes kind of a window to Five Below and drives then the traffic into the stores. Again, potential white space opportunity for us in the future. Thank you. The next question will come from Chuck Grom with Gordon Haskett. Please go ahead. Hey, thanks a lot. Winnie, on the outside looking in, it's sometimes hard to contextualize the marketing upside. Could you perhaps size up what's worked well so far? What's next as you leverage loyalty and more influencers to modernize the social spend? Can you touch on the email database that you're building out, I guess where that stands today relative to, say, a year ago. Chuck, thanks for the questions. I'm going to actually start with the marketing spend. It's really interesting. We just started on this journey with social last year, I think first steps was just trying on different types of content, both creator content, boosting UGC. What has really helped us is that we have a lot of stories to tell. The marketing and merchandising teams work really closely together, pretty much from the inception of the line. They start thinking through what would really hit. The second piece of social, though, that we've really enjoyed is social listening and just paying attention to what our customers are talking about and then being able to really lean into those trends. We see it not just in the Squish phenomenon, but we also see it in our food world with candy. Even with what's happening with our beauty programs and beauty dupes. Those are new muscles that we're just beginning to really take advantage of. We also have seen a nice pickup in terms of customer growth through connected TV. Here I mentioned that we are doing more AI and more AI-generated content that just allows us to be fast, nimble, but also really use our imagination and touch kids, and really, in terms of the channels they're looking at, like YouTube. The customer file is beginning to grow, and we are in very early stages, but we are seeing that the value of those customers in our file are growing pretty much geometrically as we go quarter in, quarter out. The key to this is how do we get more customers, capture more at the till, but then also start to really think through what loyalty could look like for Five Below. What we're working on is it going to be through the app? Is it reward points for spending and visits? We think that our customers will actually really enjoy being first in terms of knowing about new releases and new products. There's a lot more to explore there. Again, we're early stages in that journey, but excited about what we've seen so far. The next question will come from Michael Montani with Evercore ISI. Please go ahead. Yes. Hi. Thanks for taking the question. I just wanted to ask for a moment about the IEEPA tariff rebates. We were basically coming to about 150 basis points of potential tailwind from that, which assumed about 85% to 90% import, and then about 30% to 35% foreign direct import. Just wondering if you guys would comment at all on that. Also, you had mentioned the 10% tariff rate coming back into play that could go up to where it was last year, pre-IEEPA. We had that at, like, 18% to 20%. I'm just curious if you'd be willing to comment at all on how you see that margin and employ playing out. Yeah, Michael, happy to do so. Look, on the IEEPA tariffs, we've not publicly sized or quantified that, I'm certainly not going to do that here. What I would say is we've taken all the appropriate steps to secure the claims and avail ourselves to these claims. From an administrative perspective, I think we're in very good standing here towards the refunds. Of course, the if and the when to that conversation is still to be determined, we've done all the right things that we need to do. On the broader tariff discussion, just to be completely clear, what we have assumed for the back half of the year is tariff rates that return to levels that they were at the start of our fiscal year. Certainly, what's been in the news the last couple of days would tell us that's probably a pretty good assumption, how the administration intends to get back to this some way, likely through Section 301 tariffs. We think we're in a good position there. What we have updated in our outlook at this point is we have flowed through the benefit of lower tariffs that we have experienced over the 150-day period that will end in late July. It is an incredibly fluid and complicated topic. We have resisted the temptation to quantify every element of it because I think for us, we want to just make sure that we're being clear with how we thought about it and what we've included in our outlook or not. This has a lot to play out as we work through the year. The next question will come from Brad Thomas with KeyBanc Capital Markets. Please go ahead. Hi. Thank you. Congrats on the momentum. I wanted to ask about the strong customer traffic that you've had over the last year. Wondering if you've looked at or could share with us any insights into what kind of repeat visits you're seeing from new customers that are coming in. As we think about a world where perhaps tariffs are more benign, curious if there are any investments in price on the more favorable side for the customer that you may be considering, should the savings stay in place. Thank you. Great question, Brad. On the repeat from new customers, we are seeing a nice growth from repeat from new customers. We've seen double-digit growth, both in terms of repeat as well as new customer acquisition. Really nice results thus far, and more to do. Again, early innings on this one. In terms of price, it's a great question. Last year, we really made a move to simplify prices and to round everything up and down to whole price points. Our customers responded very favorably to that move. It's a much easier shopping experience, much easier for our crew as well. With that, we kept the majority of our prices at five below, and we made sure to invest in the five and above and make sure that we had great relative value. The final thing was we got rid of Five Beyond and put those products in line. Those two things gave us a real insight into how customers respond to price, and we have not seen resistance on prices above $5 if we can pack enough relative value. We feel good about the strategy we've got, and the customers have definitely voted for it, both in terms of a wide on offer at Five Below, but again, at Five Beyond, they have responded very favorably to the value we've packed into those products. We feel good about the trajectory we've got and are sticking to this game plan for now. Thank you. The next question will come from Anthony Chukumba with Loop Capital Markets. Please go ahead. Let me add my congratulations on another blockbuster quarter, and I'm not going to make a joke, so I can actually get my question in this quarter. Based on your, I mean, you have a debt-free balance sheet, right? Between your cash and short-term investments, call it $1.1 billion, and kind of based on where your stock is in the after-market, looking at a kind of a classic buy the rumor, sell the news. Your cash is about 10% of your current market cap. I guess my question is, how do you think about potential returns to shareholders given the fact that you're in this very advantaged position? Thank you. Hey, Anthony. Thanks so much for the question. Look, we continue to deploy capital primarily in support of our growth strategies. That's been our stance. Here we continue to see outsized returns on these investments. For us, we're super excited about that. You're right, by the way, though, we're certainly doing this from a position of strength. Liquidity, health of balance sheet is spot on, and we're super proud of that and the optionality that gets us as well. I see that personally as a real competitive advantage for us, especially in an increasingly challenging macro environment. In the near term, I think that's unlikely to change. Having said that, I fully appreciate the question, and as we move forward, we will continue to reevaluate here and consider opportunities to optimize returns on excess capital, to consider alternatives, and potentially deploy capital differently. Probably not at this moment because we remain in growth mode and really wanting to feed this outsized growth platform that we think we can deliver. Certainly something that we're looking at and over time will continue to evaluate. Your next question will come from Brian Nagel with Oppenheimer. Please go ahead. Hey, good afternoon. Great quarter. Congratulations. The question I want to ask, you mentioned a few times here is the benefit of outsized tax refunds in Q1. As you look at the quarter, did the tax refund benefit, did it change the shape of that quarter? I guess, if there was a unique driver, so to say, has something else taken over, as you push into Q2 with the sales momentum persisting? Yeah. Brian, no. I mean, look, the tax refund year-over-year impact was in absolute dollar size of returns year-over-year. It was the phasing and the timing of those returns didn't necessarily change. Like everyone else, that money was sort of put back in the consumer's hands in late February and then played itself largely over the next few weeks and then there's always a bit of a tail towards this. No, I think the short answer is, particularly in a year-over-year, did it meaningfully reshape the quarter for us, or was it a specific driver? The answer would be no. That's helpful. Thank you. Sure. The next question will come from Kate McShane with Goldman Sachs. Please go ahead. Hi. Good afternoon. Thanks for taking our question. It sounded like, Winnie, in your comments that beauty and fashion might be a little bit behind the other categories, just in terms of performance. We were wondering if you would say some of those assortment changes are behind that, and if so, what can we expect to see out of these categories over the next couple of quarters? Hi, Kate. Thanks so much for your question. Actually, I'm so sorry. Beauty and fashion performed well, and we're actually seeing a nice resonance across our assortments. When we speak to 15 out of 18 departments, the majority of the departments, there are a few departments that did not comp positively because we have strategically downsized them and down trended them. That's really what's happening. I do think there's more opportunity in beauty and fashion, especially as customers may select to trade down and look differently at where they purchase. We feel very good about the business and the go forward on both fronts. Thanks, Kate. The next question will come from Spencer Hanus with Wolfe Research. Please go ahead. Thanks for the question. I'm just curious how much runway you think you have to continue to shift the mix to higher AUR products over time, just as you try to mechanically cycle some of these tough comps if the underlying rate here is a high single-digit comp. Just on the success of this dumpling event in the quarter, do you see an opportunity to run that playbook across other products and categories over time here as well? Thanks, Spencer. I'm going to start with the dumpling question because I think it's a really good one. I think the playbook is really what we walked away with and the how we did it, not necessarily how many dumplings did we sell. It's certainly something that we want to leverage and activate again. There is something about social listening, amplification, getting really in the midst of a viral trend and then fueling it, and having an event that in stores was really compelling. Customers, including parents, walked away really happy with the event and thought it was pure retail-tainment. Those are things that we definitely would like to replicate and use again when appropriate. We are constantly looking for the next new, both from the vendor community, but also with the customers. What are they talking about? What's going viral today, and how do we engage with them? In terms of price, we have more room to explore price and looking at a strategic lever for growth in the future. With that said, where I think we've really won is, again, cost of entry being $1, offering this amazing specialty retail experience, and having the majority of our product at very accessible price points. I like to say that we make the aspirational accessible, and that is our main aim. What our moves in price did for us last year is it allowed us to explore price points that didn't go from $5 all the way up to $25, but what's great value at $10 and $15. It opened up our ability to allow more interesting merchandise into the assortments that we maybe wouldn't have looked at in years past. Definitely more opportunity, but again, we're going to stick with our guns in terms of delivering great relative value and making, again, aspirational accessible. Thank you. The next question will come from Joe Feldman with Telsey Advisory Group. Please go ahead. Yeah, thanks for taking the question, guys, and congrats on the quarter. I wanted to follow up, and it's been asked a little bit about how are you guys driving the trends? It sounds like you're getting better at monitoring trend activity, social media. Are the buyers maybe leveraging new tools like AI to help ingest a lot more information about what trends are? Or is it that you guys are actually creating a trend and pushing it through social media that then spurs people into the stores? I was just hoping you could share a little more color on that. Thanks. It's a great question, Joe. I would say that a couple of things happened, and it really started to take hold last year. When I joined, being a merchant, I saw the tremendous opportunity and talent we had with our teams, and we literally unleashed them. We said, "Go forth and find great things." With tariffs, it also pushed us to diversify our vendor base and look further, and really explore the markets and see what was out there, both domestically as well as abroad. I think that part of this is the funnel has broadened, and we have more product and more trend ideas going through the funnel. With our switch to social media, naturally, when you switch your media buys into social, you're much more engaged in what's happening in social. I would say that our teams were always kind of looking at it, but now we're really studying it. It's really great because I would say social trends have picked up and amplified even faster in the past year. You can do that across everything, from food to room decor, to fashion and beauty, and toys. That's been amazing to have our attention and our curiosity really piqued by what's out there. Instead of waiting for the next cycle, we chase it. Our ability to chase, go after things, try to be first to market or a fast follower is at the heart of what our buying teams do. I also think there's a lot more opportunity in terms of leveraging AI and trend detection, and we're excited to keep exploring those options. The last thing I will say is, I would love to say that we created the dumpling trend. The dumpling trend is something that we've— It's an item in our assortment for about five years. We started seeing it pop up in social. What we did was amplify what was becoming hot. That is a special skill, and I do think we can use it to then create trends on a go-forward basis. Lots in our toolkit that we're developing this year and that we can apply to future. Thanks for the question, Joe. The next question will come from Randal Konik with Jefferies. Please go ahead. Yeah. Thanks a lot, and good evening, everybody. I just want to go back to this, the Squishy or the Dumpling impact on the business. I think you said that it negatively impacted basket size. Yeah, you're talking to this idea that there's a lot of breadth in the business, which kind of makes sense. Do you think that when you look at, let's say, if you hindsight the company and think about years past of fidget spinners and other things that kind of positively impacted the business in the past, can you kind of give us some perspective of how you looked at how the business kind of performed on, let's say, a trend like that in a big way in the past, let's say, 10 years ago, whatever it was, and how you kind of see that as different today, and how you're getting more attachment in the business versus maybe you didn't in the past? I'm just curious if you've done that hindsighting and looked at a prior trend that was huge back in the day, and looked at it and how it's different today versus the past. That'd be super helpful in how you've seen that and how you think about that going forward. Thanks, guys. Yeah. That's a great question, Randal. I think what our teams have done in terms of analyzing the trend and the trends of the past is pretty remarkable. We've got a lot of data, and we've got a lot of different through lines on trends of the past, be it fidget spinners, Rainbow Loom, or Squishmallows. We have modeled out those curves to see what demand looked like and when did they peak and when did they climb down. We've looked at seasonality of trends. I think what was unique about the RMS Squishy Dumplings trend is, one, it is bigger and hotter than the other trends, and I think in part, because of social media. The exposure of this trend on social and engagement by the community has been tremendous. The virality of that trend has made the demand peak in a very, very consistent and high way. For us, it was interesting just engaging in social media with creators and with our customers. The dumpling event was neat because we could tease the campaign in social. We could really get the news out. We could get the excitement out. That, again, is a skill and a toolkit that we'll take away from it. With that said, we have worked very hard to try and build an assortment business that goes beyond a single trend and a single item. I really see it as a portfolio, and portfolio management suggests that we just need to make sure we've got lots of little trends to and to listen to and perhaps amplify as we see these trends hit their peaks and start to die down. The last thing I'll say about Squishy Dumplings is that what makes them unique was, one, they're rare, number two, the element of surprise. Some of those ingredients and what makes it special are also ingredients we'll look forward in terms of new products that come to the line that we think are trend-worthy. Hope that answers your question. Thanks, Randal. Hello? That will conclude our question and answer session. I would like to turn the conference back over to Ms. Winnie Park for closing remarks. Please go ahead. Thanks so much. As you've heard, we're making really good progress in executing our customer-centric strategy, and we're really excited for the rest of the year. I want to offer a huge thank you to the Five Below crew, who have poured so much hard work and heart into our brand. I want to thank you all for joining us on this call today, and I hope to see you in our stores this summer. Thanks so much. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.