“The biggest driver of our growth continues to be our new stores,” CEO Joel Anderson said on a conference call with investors. "The class of 2018 is currently on track to be our highest-performing class of all time​."

Five Below opened 34 stores during the second quarter, slightly more than the 31 it opened a year ago. As of the end of this last quarter, the chain's store total stood at 692, up 18.5 percent from the comparable quarter in 2017.

“Our real estate team continues to execute at a very high level, finding great locations in vibrant shopping centers with solid traffic, while our construction, design and store-opening teams do a terrific job preparing the stores to open,” Anderson said. 

Five Below is also remodeling a dozen of its older stores this year in preparation for a remodeling program next year, he says.

To gain market share from the defunct Toys ‘R’ Us chain, Five Below intends to dedicate more space in its stores to toys. “We are beginning to see the emergence of a toy trend in our stores," Anderson said. "While Toys ‘R’ Us is no longer in the market, families are searching for new toy destinations, and we are excited to serve that need.”