Earnings release
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Ollie’s Bargain Outlet Holdings, Inc. Announces Second Quarter Fiscal 2025 Results August 28, 2025 Store Openings, Sales, and Earnings Ahead of Expectations Net Sales Increased 17.5% and Earnings Per Share Increased 25.0% Raising Fiscal 2025 Sales and Earnings Outlook HARRISBURG, Pa., Aug. 28, 2025 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced financial results for the second quarter fiscal 2025 ended August 2, 2025. “We had a very strong second quarter and are operating with the wind in our sails,” said Eric van der Valk, President and Chief Executive Officer. “We are driving the business to new heights through improved planning, coordination, and execution across the organization. New store openings, total sales, comparable store sales, and earnings were all ahead of our expectations in the quarter and we are raising our full-year outlook across the board.” Mr. van der Valk continued, “Consumers responded to our compelling assortment of bargains, especially in our consumer staples and seasonal categories. Ollie’s Army growth was another bright spot in the quarter, headlined by an outstanding response to our reimagined Ollie’s Days event.” Thirteen weeks ended August 2, August 3, 2025 2024 (Dollars in thousands, except per share data) Net sales $ 679,556 $ 578,375 Yr/yr change 17.5% 12.4% Comparable store sales change(1) 5.0% 5.8% Net income $ 61,310 $ 48,982 Net income per diluted share $ 0.99 $ 0.79 Adjusted net income per diluted share $ 0.99 $ 0.78 Yr/yr change 26.9% 16.4% Adjusted EBITDA $ 93,786 $ 74,450 % of net sales 13.8% 12.9% Store openings 29 9 Store growth, yr/yr change 16.8% 8.9% (1)Calculated based on the comparable number of weeks from the prior year. Second Quarter Fiscal 2025 Highlights and Year-Over-Year Comparisons Opened 29 stores, ending the quarter with a total of 613 stores in 34 states, an increase of 16.8% year-over-year. Ollie’s Army loyalty members increased 10.6% to 16.1 million members. Net sales increased 17.5% to $679.6 million, driven by new store unit growth and an increase in comparable store sales. Comparable store sales increased 5.0%, driven by an increase in transactions. Gross margin increased 200 basis points to 39.9%. The increase was primarily driven by lower supply chain costs and higher merchandise margin. Selling, general, and administrative (“SG&A”) expenses as a percentage of net sales increased 60 basis points to 25.8%. The increase was primarily driven by higher medical and casualty claims, as well as slightly higher store labor expenses. Pre-opening expenses increased $4.4 million to $9.0 million , driven by new store growth and $2.3 million of dark rent expense associated with the former Big Lots locations that were acquired through the bankruptcy auction process. Operating margin increased 80 basis points to 11.3%.
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Adjusted net income per diluted share increased 26.9% to $0.99. Adjusted EBITDA increased 26.0% to $93.8 million and adjusted EBITDA margin increased 90 basis points to 13.8%. Total cash and investments increased 30.3%, or $107.1 million, to $460.3 million. This included cash and cash equivalents of $231.2 million, short-term investments of $85.9 million, and long-term investments of $143.2 million. Fiscal 2025 Outlook The Company is raising its previously provided sales and earnings outlook for fiscal 2025. A comparison of the current and previous outlook figures is contained in the table below. Current Previous Store Openings 85 75 Net sales $2.631 to $2.644 billion $2.579 to $2.599 billion Comparable store sales increase 3.0% to 3.5% 1.4% to 2.2% Gross margin 40.3% 40.0% Operating income(1) $292 to $298 million $283 to $292 million Adjusted net income (1)(2)(3) $233 to $237 million $225 to $232 million Adjusted net income per diluted share(1)(2)(3) $3.76 to $3.84 $3.65 to $3.75 Annual effective tax rate(3) ~ 25% ~ 25% Diluted weighted average shares outstanding ~ 62 million ~ 62 million Capital expenditures $83 to $88 million $83 to $88 million (1) Includes dark rent expenses of approximately $5 million, or $0.06 in adjusted net income per diluted share, related to the opening of stores where the leases were acquired through the bankruptcy process. (2) Includes interest income of approximately $18 million. This assumes the potential for lower interest rates in fiscal 2025. (3) Excludes the excess tax benefits related to stock-based compensation, as the Company cannot predict such estimates without unreasonable effort. Conference Call Information A conference call to discuss second quarter fiscal 2025 financial results is scheduled for today, August 28, 2025, at 8:30 a.m. Eastern Time. To access the live conference call, please preregister here. Registrants will receive a confirmation with dial-in instructions. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at https://investors.ollies.com/. A replay of the conference call webcast will be available on the investor relations website for one year. About Ollie’s Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good Stuff Cheap®. We do this through a flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at prices up to 70% below traditional retailers. As of August 2, 2025, we operated 613 stores in 34 states and growing! For more information, visit www.ollies.com. Non-GAAP Reconciliation The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), adjusted net income (loss) per diluted share, and adjusted operating income (loss) are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business. Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” table included in this press release, which sets forth the non-GAAP operating adjustments for the 13-week and 26-week periods ended August 2, 2025 and August 3, 2024. Forward-Looking Statements This press release contains certain forward-looking statements, which includes but is not limited to statements regarding industry trends, value creation, customer trends, new stores, distribution centers, and various financial outlook figures, including new store openings, net sales, comparable store sales, gross margin, SG&A, operating income, net income, adjusted net income, adjusted net income per diluted share, effective tax rate, diluted weighted average shares outstanding and capital expenditures. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “could”, “may”, “might”, “will,” “likely”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “expects”, “continues”, “projects”, “forecasts”, and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to factors outside of our control. These factors include, without limitation, the impact of the recent tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and Exchange
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Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission . There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Investor Contact John Rouleau Managing Director of Corporate Communication & Business Development JRouleau@ollies.us Media Contact Tom Kuypers Senior Vice President – Marketing & Advertising 717-657-2300 tkuypers@ollies.us Ollie’s Bargain Outlet Holdings, Inc. Condensed Consolidated Statements of Income (unaudited) (In thousands except for per share amounts) Thirteen weeks ended Twenty-six weeks ended August 2, August 3, August 2, August 3, 2025 2024 2025 2024 Net sales $ 679,556 $ 578,375 $ 1,256,323 $ 1,087,193 Cost of sales 408,218 359,344 747,954 658,804 Gross profit 271,338 219,031 508,369 428,389 Selling, general and administrative expenses 175,476 145,673 340,308 288,092 Depreciation and amortization expenses 9,916 8,004 19,273 15,720 Pre-opening expenses 8,972 4,595 15,628 7,321 Operating income 76,974 60,759 133,160 117,256 Interest income, net (4,534) (3,928) (9,322) (8,229) Income before income taxes 81,508 64,687 142,482 125,485 Income tax expense 20,198 15,705 33,612 30,161 Net income $ 61,310 $ 48,982 $ 108,870 $ 95,324 Earnings per common share: Basic $ 1.00 $ 0.80 $ 1.77 $ 1.55 Diluted $ 0.99 $ 0.79 $ 1.76 $ 1.54 Weighted average common shares outstanding: Basic 61,340 61,313 61,342 61,347 Diluted 61,796 61,721 61,806 61,731 Percentage of net sales: Net sales 100.0% 100.0% 100.0% 100.0% Cost of sales 60.1 62.1 59.5 60.6 Gross profit 39.9 37.9 40.5 39.4 Selling, general and administrative expenses 25.8 25.2 27.1 26.5 Depreciation and amortization expenses 1.5 1.4 1.5 1.4 Pre-opening expenses 1.3 0.8 1.2 0.7 Operating income 11.3 10.5 10.6 10.8 Interest income, net (0.7) (0.7) (0.7) (0.8) Income before income taxes 12.0 11.2 11.3 11.6 Income tax expense 3.0 2.7 2.7 2.8 Net income 9.0% 8.5% 8.7% 8.8% Components may not add to totals due to rounding. Ollie’s Bargain Outlet Holdings, Inc. Condensed Consolidated Balance Sheets (unaudited) (In thousands)
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August 2, August 3, Assets 2025 2024 Current assets: Cash and cash equivalents $ 231,163 $ 170,600 Short-term investments 85,893 182,544 Inventories 637,236 531,286 Accounts receivable 1,810 1,187 Prepaid expenses and other current assets 11,716 9,813 Total current assets 967,818 895,430 Property and equipment, net 360,836 307,163 Operating lease right-of-use assets 652,341 494,169 Goodwill 444,850 444,850 Trade name 230,559 230,559 Long-term investments 143,206 - Other assets 2,242 2,122 Total assets $ 2,801,852 $ 2,374,293 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 518 $ 589 Accounts payable 165,629 129,824 Income taxes payable 129 - Current portion of operating lease liabilities 103,122 87,476 Accrued expenses and other current liabilities 98,968 79,952 Total current liabilities 368,366 297,841 Long-term debt 912 984 Deferred income taxes 85,640 72,803 Long-term portion of operating lease liabilities 561,024 411,994 Total liabilities 1,015,942 783,622 Stockholders’ equity: Common stock 68 67 Additional paid-in capital 745,636 713,509 Retained earnings 1,476,583 1,263,275 Treasury - common stock (436,377) (386,180) Total stockholders’ equity 1,785,910 1,590,671 Total liabilities and stockholders’ equity $ 2,801,852 $ 2,374,293 Ollie’s Bargain Outlet Holdings, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (In thousands) Thirteen weeks ended Twenty-six weeks ended August 2, August 3, August 2, August 3, 2025 2024 2025 2024 Net cash provided by operating activities $ 80,712 $ 43,875 $ 109,414 $ 84,059 Net cash used in investing activities (39,744) (90,883) (58,010) (159,398) Net cash (used in) provided by financing activities (8,823) 5,358 (25,364) (20,323) Net increase (decrease) in cash and cash equivalents 32,145 (41,650) 26,040 (95,662) Cash and cash equivalents, beginning of the period 199,018 212,250 205,123 266,262 Cash and cash equivalents, end of the period $ 231,163 $ 170,600 $ 231,163 $ 170,600 Ollie’s Bargain Outlet Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (In thousands except for per share amounts) Thirteen weeks Ended Twenty-six weeks ended August 2, August 3, August 2, August 3, 2025 2024 2025 2024 Net income $ 61,310 $ 48,982 $ 108,870 $ 95,324 Excess tax benefits related to stock-based compensation(1) (425) (756) (1,912) (1,888) Adjusted net income $ 60,885 $ 48,226 $ 106,958 $ 93,436
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Net income per diluted share $ 0.99 $ 0.79 $ 1.76 $ 1.54 Adjustments as noted above, per dilutive share: Excess tax benefits related to stock-based compensation(1) (0.01) (0.01) (0.03) (0.03) Adjusted net income per diluted share $ 0.99 $ 0.78 $ 1.73 $ 1.51 Diluted weighted-average common shares outstanding 61,796 61,721 61,806 61,731 Net income $ 61,310 $ 48,982 $ 108,870 $ 95,324 Interest income, net (4,534) (3,928) (9,322) (8,229) Depreciation and amortization expenses 13,452 10,039 26,261 19,824 Income tax expense 20,198 15,705 33,612 30,161 EBITDA 90,426 70,798 159,421 137,080 Non-cash stock-based compensation expense 3,360 3,652 6,524 6,801 Adjusted EBITDA $ 93,786 $ 74,450 $ 165,945 $ 143,881 Components may not add to totals due to rounding. (1)Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation Ollie’s Bargain Outlet Holdings, Inc. Key Statistics (unaudited) (Dollars in thousands) Thirteen weeks ended August 2, August 3, 2025 2024 Number of stores - beginning of period 584 516 Store openings 29 9 Store closings - - Number of stores - end of period 613 525 Yr/yr store growth 16.8% 8.9% Comparable stores sales change 5.0% 5.8% Comparable store count – end of period 510 475 Total cash and investments(1) $ 460,262 $ 353,144 Capital expenditures $ 26,416 $ 38,289 Share repurchases $ 11,516 $ 6,428 (1) Includes cash and cash equivalents, short-term investments, and long-term investments. Source: Ollie's Bargain Outlet Holdings, Inc.