Ollie's Bargain Outlet (OLLI) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2024 increased 7.8% year-over-year to $517.4 million, driven by new store openings, while comparable store sales declined 0.5%.

• Adjusted EPS rose 14% to $0.58, with net income up 12.8% to $35.9 million and adjusted net income up 13%.

• Adjusted EBITDA grew 17% to $59.8 million, with margin up 100 bps to 11.6%.

• Opened a record 24 new stores in Q3, ending with 546 stores in 31 states, an 8.1% increase in store count.

• CEO transition planned for fiscal 2025, with Eric van der Valk to succeed John Swygert.

Financial highlights

• Q3 net sales: $517.4 million (up 7.8% year-over-year); nine months: $1.605 billion (up 10.4%).

• Gross margin increased 100 bps to 41.4%, mainly due to lower supply chain costs.

• Operating income up 14% to $44.5 million; operating margin up 50 bps to 8.6%.

• SG&A as a percentage of sales increased 40 bps to 29.9% due to deleverage from lower comps.

• Cash and short-term investments at period end: $303.9 million.

Outlook and guidance

• Fiscal 2024 net sales guidance narrowed to $2.27–$2.28 billion; comp sales 2.7%–3%.

• Gross margin outlook remains at 40%; adjusted net income and EPS guidance unchanged.

• Targeting 50 new store openings in 2024 (net of closures), with 13 planned for Q4.

• Capital expenditures for 2024 projected at $104 million, including new store acquisitions and buildouts.

• Minimum 10% unit growth targeted for 2025, with store openings front-loaded in the year.