Ollie's Bargain Outlet (OLLI) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2024 increased 7.8% year-over-year to $517.4 million, driven by new store openings, while comparable store sales declined 0.5%.

• Adjusted EPS rose 14% to $0.58, with net income up 12.8% to $35.9 million and adjusted EBITDA up 17% to $59.8 million.

• Opened a record 24 new stores, ending the quarter with 546 stores in 31 states, an 8.1% increase in store count.

• Gross margin improved by 100 basis points to 41.4%, mainly due to lower supply chain costs.

• CEO transition on track, with Eric van der Valk set to become CEO at the start of fiscal 2025.

Financial highlights

• Q3 net sales: $517.4 million (up 7.8% year-over-year); nine months: $1.605 billion (up 10.4%).

• Q3 net income: $35.9 million (up 12.8%); nine months: $131.2 million (up 25.0%).

• Q3 gross profit: $214.5 million (up 10.5%); gross margin: 41.4% (up 100 bps).

• Q3 operating income up 14% to $44.5 million; operating margin rose to 8.6%.

• Adjusted EBITDA margin expanded 100 basis points to 11.6%.

Outlook and guidance

• Fiscal 2024 net sales guidance narrowed to $2.27–$2.28 billion; comparable store sales expected at 2.7%–3%.

• Gross margin outlook remains at 40%; adjusted net income and EPS guidance unchanged.

• Targeting 50 new store openings in 2024 (net of closures), with at least 10% unit growth planned for 2025.

• Capital expenditures for 2024 projected at $104 million, including new store acquisitions and buildouts.

• Fourth quarter expected to benefit from flyer shift and strong holiday momentum.