Earnings release
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Ollie’s Bargain Outlet Holdings, Inc. Announces Second Quarter Fiscal 2026 Results September 2, 2026 Net Sales Increased 9.1% Opened 15 New Stores and Grew Ollie’s Army 12.7% Updating Outlook for Fiscal 2026 HARRISBURG, Pa., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced financial results for the second quarter ended August 1, 2026. “We delivered strong earnings growth in the second quarter and continued to execute against our key strategic initiatives,” said Eric van der Valk , President and Chief Executive Officer. “Comparable store sales declined 1.8% against a challenging multi-year stack. We believe our sales results were negatively impacted by the combination of less favorable weather, continued economic pressure on the consumer, and an elevated promotional environment, which all led to a more challenging backdrop than we originally expected.” Mr. van der Valk continued, “Consumers continue to seek value and many of the same pressures affecting our customers are creating buying opportunities across the closeout market. We continue to see strong deal flow and remain committed to reinvesting in price and strengthening our competitive position. With a flexible business model, deep vendor relationships, growing scale, and a talented team, we believe Ollie's is well positioned to deliver long-term profitable growth through any retail environment.” Thirteen weeks ended August 1, August 2, Dollars in thousands, except per share data 2026 2025 Net sales $ 741,305 $ 679,556 Yr/yr change 9.1% 17.5% Comparable store sales change(1) (1.8%) 5.0% Net income $ 85,454 $ 61,310 Net income per diluted share $ 1.42 $ 0.99 Adjusted net income per diluted share $ 1.42 $ 0.99 Yr/yr change 43.4% 26.9% Adjusted EBITDA $ 127,095 $ 93,786 % of net sales 17.1% 13.8% Store openings(2) 15 29 Store growth, yr/yr change 11.9% 16.8% (1)Calculated based on the comparable number of weeks from the prior year. (2)Gross number that does not include any store closures in the period. Second Quarter 2026 Highlights and Year-Over-Year Comparisons Opened 15 new stores and closed one store related to storm damage, ending the quarter with 686 stores in 36 states, an increase of 11.9%. Ollie’s Army loyalty members increased 12.7% to 18.1 million members. Net sales increased 9.1% to $741.3 million, driven by new store unit growth. Comparable store sales decreased 1.8%, against a 5.0% increase in last year’s second quarter, with this year’s decrease driven by a decrease in average basket size.
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Gross margin increased 360 basis points to 43.5%. The increase was driven by lower supply chain costs, primarily from IEEPA tariff refunds and lower tariff rates. IEEPA tariff refunds benefited gross margin by 380 basis points in this year’s second quarter. Selling, general, and administrative (“SG&A”) expenses as a percentage of net sales increased 80 basis points to 26.6%, with the increase primarily driven by the deleverage of fixed costs from the decline in comparable store sales and higher marketing expenses primarily from one additional merchandise flyer in the second quarter. Pre-opening expenses decreased 42.0% to $5.2 million , driven primarily by a lower number of new store openings and lower dark rent expense. Adjusted net income increased 40.3% to $85.4 million and adjusted net income per diluted share increased 43.4% to $1.42. Total cash and investments increased $46.8 million, to $507.1 million. This included cash and cash equivalents of $120.8 million, short-term investments of $66.7 million, and long-term investments of $319.6 million. The Company invested $84.0 million of cash to repurchase 1.107 million shares of its common stock in the second quarter. In the first half of the year, the Company repurchased $137.3 million, or 1.6 million shares, of its common stock. At the end of the second quarter, $121.5 million remained available for future share repurchases under the current share repurchase authorization. Outlook The Company is updating its financial outlook figures for the fiscal year 2026 ending January 30, 2027. The Company is updating its net sales outlook to better align with recent sales trends and the current environment for the balance of the fiscal year. In addition, the Company’s current outlook now includes IEEPA tariff refunds of $28.3 million received in the second quarter, of which the Company intends to reinvest in pricing actions to further strengthen its competitive position. A table comparing the current outlook metrics to the previous outlook metrics is below. Current Previous New store openings(1) 75 75 Net sales $2.928 to $2.941 billion $2.980 to $3.000 billion Comparable store sales growth 0% to 0.5% ~2% Gross margin ~41.3% ~40.7% Operating income $345 to $350 million $340 to $348 million Adjusted net income(2)(3) $275 to $279 million $271 to $277 million Adjusted net income per diluted share(2)(3) $4.57 to $4.65 $4.45 to $4.55 Annual effective tax rate(3) ~25% ~25% Diluted weighted average shares outstanding ~60.0 million ~60.9 million Capital expenditures $103 to $113 million $103 to $113 million Share repurchases ~$175 million ~$125 million (1)New store openings is a gross number that does not include two store closures related to storm damage. (2)Includes interest income of approximately $22 million. (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 2026 financial results is scheduled for today, September 2, 2026, 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 1, 2026, we operated 686 stores in 36 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, EBITDA, and Adjusted EBITDA 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
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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 1, 2026 and August 2, 2025. 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 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, Corporate Communication & Business Development JRouleau@ollies.us Media Contact Tom Kuypers Senior Vice President, Marketing 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 1, August 2, August 1, August 2, 2026 2025 2026 2025 Net sales $ 741,305 $ 679,556 $ 1,400,233 $ 1,256,323 Cost of sales 419,140 408,218 802,104 747,954 Gross profit 322,165 271,338 598,129 508,369 Selling, general and administrative expenses 197,213 175,476 385,895 340,308 Depreciation and amortization expenses 11,274 9,916 22,557 19,273 Pre-opening expenses 5,203 8,972 11,645 15,628 Operating income 108,475 76,974 178,032 133,160 Interest income, net (6,142) (4,534) (11,108) (9,322) Income before income taxes 114,617 81,508 189,140 142,482 Income tax expense 29,163 20,198 47,286 33,612 Net income $ 85,454 $ 61,310 $ 141,854 $ 108,870 Earnings per common share: Basic $ 1.42 $ 1.00 $ 2.35 $ 1.77 Diluted $ 1.42 $ 0.99 $ 2.34 $ 1.76 Weighted average common shares outstanding: Basic 60,097 61,340 60,490 61,342 Diluted 60,236 61,796 60,713 61,806 Percentage of net sales: Net sales 100.0% 100.0% 100.0% 100.0% Cost of sales 56.5 60.1 57.3 59.5
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Gross profit 43.5 39.9 42.7 40.5 Selling, general and administrative expenses 26.6 25.8 27.6 27.1 Depreciation and amortization expenses 1.5 1.5 1.6 1.5 Pre-opening expenses 0.7 1.3 0.8 1.2 Operating income 14.6 11.3 12.7 10.6 Interest income, net (0.8) (0.7) (0.8) (0.7) Income before income taxes 15.5 12.0 13.5 11.3 Income tax expense 3.9 3.0 3.4 2.7 Net income 11.5% 9.0% 10.1% 8.7% Components may not add to totals due to rounding. Ollie’s Bargain Outlet Holdings, Inc. Condensed Consolidated Balance Sheets (unaudited) (In thousands) August 1, August 2, Assets 2026 2025 Current assets: Cash and cash equivalents $ 120,765 $ 231,163 Short-term investments 66,737 85,893 Inventories 704,433 637,236 Accounts receivable 7,801 1,810 Prepaid expenses and other current assets 17,187 11,716 Total current assets 916,923 967,818 Property and equipment, net 419,234 360,836 Operating lease right-of-use assets 694,113 652,341 Goodwill 444,850 444,850 Trade name 230,559 230,559 Long-term investments 319,592 143,206 Other assets 2,325 2,242 Total assets $ 3,027,596 $ 2,801,852 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 809 $ 518 Accounts payable 190,207 165,629 Income taxes payable 5,755 129 Current portion of operating lease liabilities 99,157 103,122 Accrued expenses and other current liabilities 115,656 98,968 Total current liabilities 411,584 368,366 Long-term debt 1,420 912 Deferred income taxes 94,733 85,640 Long-term portion of operating lease liabilities 624,260 561,024 Total liabilities 1,131,997 1,015,942 Stockholders’ equity: Common stock 68 68 Additional paid-in capital 764,299 745,636 Retained earnings 1,750,163 1,476,583 Treasury - common stock (618,931) (436,377) Total stockholders’ equity 1,895,599 1,785,910 Total liabilities and stockholders’ equity $ 3,027,596 $ 2,801,852 Ollie’s Bargain Outlet Holdings, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (In thousands)
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Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2026 2025 2026 2025 Net cash provided by operating activities $ 108,124 $ 80,712 $ 153,625 $ 109,414 Net cash used in investing activities (101,095) (39,744) (150,656) (58,010) Net cash used in financing activities (83,937) (8,823) (141,884) (25,364) Net increase (decrease) in cash and cash equivalents (76,908) 32,145 (138,915) 26,040 Cash and cash equivalents, beginning of the period 197,673 199,018 259,680 205,123 Cash and cash equivalents, end of the period $ 120,765 $ 231,163 $ 120,765 $ 231,163 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 1, August 2, August 1, August 2, 2026 2025 2026 2025 Net income $ 85,454 $ 61,310 $ 141,854 $ 108,870 Excess tax benefits related to stock-based compensation(1) (7) (425) (501) (1,912) Adjusted net income $ 85,447 $ 60,885 $ 141,353 $ 106,958 Net income per diluted share $ 1.42 $ 0.99 $ 2.34 $ 1.76 Adjustments as noted above, per dilutive share: Excess tax benefits related to stock-based compensation(1) (0.00) (0.01) (0.01) (0.03) Adjusted net income per diluted share $ 1.42 $ 0.99 $ 2.33 $ 1.73 Diluted weighted-average common shares outstanding 60,236 61,796 60,713 61,806 Net income $ 85,454 $ 61,310 $ 141,854 $ 108,870 Interest income, net (6,142) (4,534) (11,108) (9,322) Depreciation and amortization expenses 14,892 13,452 29,826 26,261 Income tax expense 29,163 20,198 47,286 33,612 EBITDA 123,367 90,426 207,858 159,421 Non-cash stock-based compensation expense 3,728 3,360 7,129 6,524 Adjusted EBITDA $ 127,095 $ 93,786 $ 214,987 $ 165,945 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 1, August 2, 2026 2025 Number of stores - beginning of period 672 584 Store openings 15 29 Store closings(1) (1) - Number of stores - end of period 686 613 Yr/yr store growth 11.9% 16.8% Comparable stores sales change (1.8)% 5.0%
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Comparable store count – end of period 575 510 Total cash and investments(2) $ 507,094 $ 460,262 Capital expenditures $ 43,309 $ 26,416 Share repurchases $ 83,964 $ 11,516 (1)Due to storm-related damage. (2)Includes cash and cash equivalents, short-term investments, and long-term investments. Source: Ollie's Bargain Outlet Holdings, Inc.