Ollie's Bargain Outlet (OLLI) Q4 2025 earnings summary

Executive summary

• Q4 net sales rose 2.8% to $667 million, with adjusted earnings above guidance and December as the strongest month, driven by holiday demand.

• Opened 13 new stores in Q4 and 50 in FY24, ending with 559 stores, a 9.2% increase year-over-year.

• Benefited from industry disruption and announced acquisition of 40 former Big Lots store leases, expected to drive profitability and market share gains.

• Flexible buying model and value proposition position the company for continued profitable growth.

• Adjusted EBITDA for Q4 was $109 million (16.4% margin); FY adjusted EBITDA $313.1 million (13.8% margin).

Financial highlights

• Q4 net sales increased 3% to $667 million, with comparable store sales up 2.8% and gross margin up 20 bps to 40.7%.

• Adjusted net income was $73 million ($1.19/share) for Q4; FY adjusted net income $202.4 million ($3.28/share).

• Adjusted EBITDA reached $109 million in Q4; FY adjusted EBITDA up 13.8%.

• Ended Q4 with $429 million in cash and no outstanding borrowings.

• Inventories up 9% year-over-year, reflecting store growth and earlier new store openings.

Outlook and guidance

• Plan to open approximately 75 new stores in fiscal 2025, with openings weighted to the first half.

• Fiscal 2025 guidance: net sales of $2.564–$2.586 billion, comparable store sales growth of 1%-2%, gross margin ~40%, operating income of $283–$292 million, adjusted net income of $225–$232 million, and adjusted EPS of $3.65–$3.75.

• Pre-opening expenses expected at $21 million, including $5 million in dark rent from acquired Big Lots locations.

• Capital expenditures projected at $83–$88 million for 2025.

• Comp growth expected at the lower end of the range in H1, improving in H2 as comparisons ease.