Ollie's Bargain Q4 Results Surpass Expectations, Comparable Sales Increase 3.6% Year Over Year

Ollie’s Bargain Outlet Reports Mixed Q4 Results for Fiscal 2025

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) posted fourth-quarter results for fiscal 2025 that showed earnings outpacing expectations, while revenue fell just short of analyst forecasts. Both figures improved compared to the previous year, thanks to robust comparable-store sales, successful new store launches, a growing customer base, and ongoing strength in key product categories such as consumables and seasonal items.

The company’s focus on value continues to attract shoppers, even as the retail environment remains challenging. During fiscal 2025, Ollie’s opened 86 new locations, ending the year with 645 stores across 34 states—a 15.4% increase. Membership in the Ollie’s Army loyalty program also climbed over 12%, reaching 17 million members.

Highlights from Ollie’s Q4 Performance

Adjusted earnings per share reached $1.39, slightly above the consensus estimate of $1.38 and up 16.8% from $1.19 a year ago. Net sales increased by 16.8% to $779.3 million, fueled by a record number of store openings and strong same-store sales. However, revenue was just under the expected $781 million. Comparable-store sales rose 3.6%, driven by higher transaction counts and larger average baskets. Top-performing categories included seasonal goods, consumables, hardware, stationery, and sporting goods. Analysts had projected a 2.8% increase in comparable-store sales for the quarter.

Margin and Expense Analysis

Gross profit climbed 14.5% to $310.9 million, though gross margin slipped by 80 basis points to 39.9%, mainly due to strategic pricing investments. This margin decline was less severe than management had anticipated, as a 140-basis-point drop had been expected. Selling, general, and administrative (SG&A) expenses as a percentage of net sales improved by 130 basis points to 24.2%. Adjusted SG&A also decreased by 40 basis points, benefiting from higher sales per store and marketing efficiencies. Operating income jumped 24.4% to $109.1 million, with the operating margin expanding by 80 basis points to 14%. Adjusted EBITDA rose 16.2% to $127.1 million, while the EBITDA margin edged down by 10 basis points to 16.3%.

Financial Position at Quarter-End

Ollie’s closed the quarter with $562.8 million in cash and investments, a 31.3% increase year over year. The company maintains a low-debt balance sheet, allowing flexibility for future growth and share repurchases. Capital expenditures totaled $18 million, primarily allocated to new store development. In fiscal 2025, Ollie’s repurchased $73.8 million in shares, reinforcing its focus on returning value to shareholders.

Fiscal 2026 Outlook for OLLI

For fiscal 2026, management projects net sales between $2.985 billion and $3.013 billion, up from $2.649 billion in the prior year. Comparable-store sales are expected to grow by 2%, compared to 3.7% last year. The gross margin is forecast at 40.5%, and the company plans to open 75 new stores. Operating income is anticipated to range from $339 million to $348 million, with adjusted net income expected between $270 million and $277 million.

Adjusted earnings per share are projected to be in the $4.40–$4.50 range, an increase from $3.86 last year. Capital expenditures are estimated at $103–$113 million, and share repurchases are targeted at $100 million. The effective tax rate is expected to be 25%. Over the past three months, OLLI shares have declined 7.2%, while the broader consumer staples sector has grown by 2.8%.

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