Ollie's Bargain Outlet (OLLI) investor relations material

Executive summary

• Net sales rose 14.2% year-over-year to $658.9 million for Q1 2026, driven by new store openings, higher comparable store sales, and disciplined expense control.

• Net income increased 18.6% to $56.4 million, with adjusted EPS up 21.3% to $0.91 and diluted EPS at $0.92.

• Opened 27 new stores, bringing the total to 672 across 35 states, and grew loyalty program membership by 12.6% to 17.5 million.

• Navigated a dynamic consumer environment with shifting shopping patterns due to surging fuel prices, unseasonable weather, and macroeconomic pressures.

• Continued to optimize category mix, with successful expansion into furniture and ongoing rightsizing of underperforming categories.

Financial highlights

• Comparable store sales increased 1.7% year-over-year, primarily due to higher basket size.

• Adjusted EBITDA grew 21.8% to $87.9 million, with margin up to 13.3%.

• Gross margin improved by 80 basis points to 41.9%, driven by lower supply chain costs and higher merchandise margin.

• SG&A expenses remained flat as a percentage of sales at 28.6%.

• Total cash and investments increased 26.7% to $525.6 million; no meaningful long-term debt.

Outlook and guidance

• Fiscal 2026 guidance: 75 new store openings, net sales of $2.98–$3.0 billion, comparable store sales growth of 2%, gross margin of 40.7%, and operating income of $340–$348 million.

• Adjusted net income expected at $271–$277 million, with EPS of $4.45–$4.55.

• Capital expenditures projected at $103–$113 million, including $20 million for distribution center expansions.

• Buyback target raised to $125 million for the year, about 50% of free cash flow.

• Q2 comps expected to be similar to Q1, with potential upside from pent-up demand in seasonal categories.