Ollie's Bargain Outlet (OLLI) investor relations material

Executive summary

• Net sales rose 9.1% year-over-year to $741.3 million in Q2 2026, driven by new store openings, despite a 1.8% decline in comparable store sales and a challenging consumer environment.

• Adjusted net income grew 40.3% to $85.4 million, with adjusted EPS up 43.4% to $1.42, aided by IEEPA tariff refunds and improved gross margin.

• Customer engagement remained robust, with Ollie's Army loyalty members up 12.7% year-over-year to 18.1 million.

• Strategic focus on assortment optimization, new store growth, and supply chain investments to support long-term expansion.

• Opened 15 new stores (net 14 after one closure), ending the quarter with 686 stores, up 11.9% year-over-year.

Financial highlights

• Gross margin expanded 360 basis points to 43.5%, with a 380 basis point benefit from IEEPA tariff refunds.

• SG&A as a percentage of net sales increased 80 basis points to 26.6%, mainly due to deleverage from lower comps and higher marketing spend.

• Adjusted EBITDA for the quarter grew 35.5% to $127.1 million, with margin up 330 basis points to 17.1%.

• Operating income margin increased to 14.6% from 11.3% year-over-year.

• Total cash and investments reached $507.1 million at quarter-end; no meaningful long-term debt.

Outlook and guidance

• Fiscal 2026 guidance: 75 new store openings, 2 closures, net sales of $2.928–$2.941 billion.

• Comparable store sales expected flat to +0.5%; gross margin guided at 41.3%.

• Adjusted net income forecasted at $275–$279 million; adjusted EPS $4.57–$4.65.

• Guidance includes $28 million in tariff refunds and $50 million in price investments.

• Capital expenditures projected at $103–$113 million, focused on new stores and distribution center expansion.