Ollie's Bargain Outlet (OLLI) investor relations material

Executive summary

• Net sales rose 18.6% year-over-year to $613.6 million in Q3, driven by record 32 new store openings and 3.3% comparable store sales growth.

• Adjusted net income increased 29% to $46.2 million, with adjusted EPS up 29.3% to $0.75 and adjusted EBITDA up 21.8% to $73 million.

• Loyalty program memberships grew 11.8% to 16.6 million, with customer file up 12% year-over-year.

• Expanded seasonal and gift assortments, and shifted marketing from print to digital, driving higher engagement and sales.

• Ended the quarter with 645 stores in 34 states, surpassing the annual target with 86 new stores year-to-date.

Financial highlights

• Gross margin decreased by 10 bps to 41.3% due to higher supply chain and tariff costs, partially offset by improved merchandise margins.

• SG&A as a percent of sales decreased 50 bps to 29.4%, aided by lower professional fees and optimized marketing spend.

• Operating income rose 24.5% to $55.4 million, with operating margin up 40 bps to 9.0%.

• Total cash and investments increased 42% to $432 million; no meaningful long-term debt.

• Share repurchases totaled $12 million in Q3, with $293 million remaining under authorization.

Outlook and guidance

• Raised full-year guidance: net sales of $2.648–$2.655 billion, comp sales growth of 3.0%–3.5%, gross margin ~40.3%, operating income $293–$298 million, adjusted net income $236–$239 million, and adjusted EPS $3.81–$3.87.

• Fourth quarter comp outlook set at 2%–3%; no additional store openings in fiscal 2025, with 75 new stores targeted for 2026.

• Capital expenditures for the year expected at $88 million, mainly for new stores and infrastructure.