Ollie's: Profit Surge, Outlook Raised
Ollie's Bargain Outlet Reports Strong Q1 Profit as Sales Climb and Outlook Rises
Ollie’s Bargain Outlet reported first-quarter fiscal 2026 net sales of $658.9 million, up 14.2% year over year, and net income of $56.4 million, or $0.92 per diluted share. On an adjusted basis, earnings were $0.91 per share, and the company also reported margin improvement including an expanded gross margin to 41.9%. The discount retailer said it accelerated growth by opening 27 stores during the quarter to reach 672 locations across 35 states, while investing in supply-chain and category productivity efforts that helped reduce certain pre-opening expenses. Ollie’s also grew its loyalty program base, boosting active “Ollie’s Army” members, and returned $53.4 million to shareholders through share repurchases. Management raised its full-year fiscal 2026 adjusted EPS outlook to a range of $4.45 to $4.55, signaling confidence despite mixed commentary that the quarter may have been close to or slightly below some Wall Street revenue expectations. Overall, the company attributes the strong start to continued consumer demand for value, operational improvements, and a growing retail footprint.
Key Points
Ollie’s said pre-opening expenses fell to $6.4 million, which it attributed in part to “lower dark rent on acquired bankruptcy stores,” alongside its supply-chain/category productivity initiatives.
The company ended the quarter with total cash and investments of $525.6 million.
Ollie’s loyalty program growth included a 12.6% increase in active “Ollie’s Army” members to 17.5 million, and management said this base drives a significant portion of recurring transaction volume.
Beyond gross margin, Ollie’s reported an adjusted EBITDA margin of 13.3%, and CEO Eric van der Valk said, “We are very pleased with our first quarter results and the outstanding performance of our team.”
One report said the quarter’s revenue was close to but “fell short” of Wall Street’s expectations, while full-year revenue guidance was set to $2.99 billion at the midpoint; it also reported non-GAAP profit of $0.91 per share as 4.4% above analysts’ consensus estimates.
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