Ollie's Bargain Outlet (OLLI) Q1 2025 earnings summary

Executive summary

• Net sales rose 10.8% year-over-year to $508.8 million in Q1 FY2024, driven by new store openings and a 3.0% increase in comparable store sales.

• Adjusted net income increased 47% to $45.2 million; adjusted EPS up 49% to $0.73.

• Four new stores opened in Q1, bringing the total to 516 locations across 30 states (8% YoY growth).

• Acquisition of 11 99 Cents Only Stores in Texas for $14.6 million to accelerate growth and strengthen market presence.

• Leadership transitions announced, including CEO succession planned for early 2025.

Financial highlights

• Gross profit increased to $209.4 million, with gross margin expanding 220 bps to 41.1%.

• Operating income increased 47% to $56.5 million; operating margin up 270 bps to 11.1%.

• Adjusted EBITDA increased 40.3% to $69.4 million; adjusted EBITDA margin up 280 bps to 13.6%.

• Cash and short-term investments totaled $341.5 million at quarter-end, with no outstanding revolver borrowings.

• Inventory increased 5.9% to $527.5 million, reflecting new store growth.

Outlook and guidance

• Raised FY2024 outlook: net sales of $2.257–$2.277 billion, comparable store sales growth of 1.5%–2.3%.

• Adjusted net income projected at $196–$202 million; adjusted EPS $3.18–$3.28.

• 50 new store openings targeted (net 48 after 2 closures), with 11 from 99 Cents Only acquisition.

• Capex projected at $90 million (excluding $14.6 million for store purchases); pre-opening expenses ~$17 million.

• Fourth distribution center in Princeton, IL, expected to be operational in the second half of fiscal 2024.