What caused OLLI's Q2 2025 EPS to exceed forecasts?

Ollie's Bargain Outlet Holdings Inc (OLLI) reported an EPS of $1.11 for Q2 2025, which missed the estimated $1.20 per share. Therefore, the company's performance did not cause OLLI's Q2 2025 EPS to exceed forecasts.

1. **Revenue Growth**: Ollie's Bargain Outlet Holdings Inc (OLLI) is set to release its Q4 2024 earnings on Mar 19, 2025. The consensus estimate for Q4 2024 revenue is $674.53 million, and the earnings are expected to come in at $1.20 per share. The full year 2024's revenue is expected to be $2.28 billion and the earnings are expected to be $3.29 per share.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|OLLI|OLLI.O|Ollie's Bargain|2025 Q1|0.08|0.75|185|
|OLLI|OLLI.O|Ollie's Bargain|2025 Q2|0|0.79|185|
|OLLI|OLLI.O|Ollie's Bargain|2025 Q3|0.01|0.58|185|
|OLLI|OLLI.O|Ollie's Bargain|2025 Q4|0|1.11|185|

2. **Strategic Expansion**: Ollie's has seen a steady increase in net sales, gross profit, and net income over the past three years. In 2025, Ollie reported net sales of $2.27 billion, a significant jump from $1.83 billion in 2023. The gross profit followed suit, rising from $656 million to $914 million during the same period. This financial stability provides Ollie with a solid foundation to invest in growth initiatives and weather economic challenges.
3. **Customer Loyalty**: Ollie's customer loyalty program, Ollie's Army, boasts 15.1 million members, underscoring the brand's strong customer engagement and potential for future revenue growth. Strengths Robust Financial Performance: Ollie's financials are a testament to its operational prowess. The company has seen a steady increase in net sales, gross profit, and net income over the past three years. In 2025, Ollie reported net sales of $2.27 billion, a significant jump from $1.83 billion in 2023. The gross profit followed suit, rising from $656 million to $914 million during the same period. This financial stability provides Ollie with a solid foundation to invest in growth initiatives and weather economic challenges. Ollie's unique market position, characterized by its engaging shopping experience and compelling value proposition, has been instrumental in driving this growth. Ollie's customer loyalty program, Ollie's Army, boasts 15.1 million members, underscoring the brand's strong customer engagement and potential for future revenue growth.
4. **New Store Openings**: The company opened 13 new stores in Q4, bringing the total to 559 stores, marking a 9.2% increase year-over-year. Gross Margin: Improved by 20 basis points to 40.7%, driven by lower supply chain costs. Net Income: Decreased 10.4% to $68.6 million, or $1.11 per diluted share, compared to the previous year. Cash and Investments: Ended fiscal 2024 with $428.7 million in cash and short-term investments, up from $353.2 million the previous year. On March 19, 2025, Ollie's Bargain Outlet Holdings Inc (OLLI) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year 2024. The company, known for offering brand-name merchandise at reduced prices, operates stores across the Eastern United States and is recognized for its unique treasure hunt shopping experience. Fourth Quarter Financial Performance Ollie's reported a 2.8% increase in total net sales for the fourth quarter, reaching $667.1 million. This growth was driven by new store openings and a comparable store sales increase of 2.8%. However, the company's earnings per share (EPS) of $1.11 fell short of the analyst estimate of $1.20. Adjusted EPS was slightly higher at $1.19, still below expectations. Net income for the quarter was $68.6 million, a decrease of 10.4% compared to the previous year. The company opened 13 new stores, ending the quarter with 559 stores, marking a 9.2% increase year-over-year. Pre-opening expenses rose by $3.2 million, impacting earnings by $0.04 per share. Fiscal Year 2024 Achievements For the full fiscal year, Ollie's achieved an 8.0% increase in net sales, totaling $2.272 billion, slightly below the annual revenue estimate of $2..
5. **Analyst Expectations**: The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.20 per share. The retailer posted revenue of $667.1 million in the period, which also missed Street forecasts. Six analysts surveyed by Zacks expected $672.1 million. Ollie's Bargain Outlet expects full-year earnings in the range of $3.65 to $3.75 per share, with revenue in the range of $2.56 billion to $2.59 billion. This indicates that the EPS not exceeding forecast may not be a concern for investors, as the company's overall financial performance and growth prospects are positive.

In conclusion, Ollie's Bargain Outlet Holdings Inc (OLLI) has shown robust financial growth, strategic expansion, and customer loyalty program, which are the key drivers for its revenue growth and profitability. Despite missing the EPS expectation in Q2 2025, the company's overall performance and future outlook remain positive, supported by strong financials and strategic initiatives.