Ollie's Bargain Outlet Q2 Earnings Show 18% Sales Growth and Strong Expansion

Ollie's Bargain Outlet reported strong Q2 earnings with net sales increasing 18% to $680mln and comparable store sales up 5%. The company opened 29 new stores, bringing their total to 613, and saw a 10.6% increase in their Ollie's Army loyalty program. Gross margin improved by 200bps to 39.9%, but SG&A expenses rose 60bps to 25.8% of net sales. The company plans to open 85 new stores in FY22 and expects net sales between $2.631bln and $2.644bln.

Ollie's Bargain Outlet Holdings, Inc. (OLLI) announced robust second-quarter (Q2) fiscal 2025 results, demonstrating strong performance across multiple key metrics. The company reported a net income of $61.3 million, up 25.0% year-over-year (YoY), and a net sales increase of 17.5% to $679.6 million. Comparable store sales (comps) grew by 5.0%, driven by a 10.6% increase in the Ollie's Army loyalty program members to 16.1 million.

The company's gross margin improved by 200 basis points (bps) to 39.9%, while operating margin increased by 80 bps to 11.3%. However, selling, general, and administrative (SG&A) expenses rose by 60 bps to 25.8% of net sales. Ollie's opened 29 new stores during the quarter, bringing the total to 613 stores across 34 states.

In the earnings call, Eric van der Valk, Ollie's president and CEO, highlighted the company's strong performance and raised its full-year fiscal 2025 outlook. The new guidance includes net sales of $2.631 billion to $2.644 billion, a 3.0% to 3.5% increase in comps, and adjusted net income per diluted share of $3.76 to $3.84.

Ollie's Bargain Outlet's strategic expansion and improved operational efficiency have contributed to its robust growth. The company's ability to leverage its scale and maintain its value proposition has driven customer engagement and loyalty. The raised full-year guidance reflects management's confidence in sustaining this momentum.

References:
[1] https://www.homepagenews.com/retail-articles/ollies-cites-q2-housewares-gains-as-tariffs-presented-opportunity-buys/
[2] https://www.nasdaq.com/articles/ollies-bargain-outlet-q2-earnings-rise-lifts-fy25-outlook
[3] https://www.stocktitan.net/news/OLLI/ollie-s-bargain-outlet-holdings-inc-announces-second-quarter-fiscal-a1d2o7qbcalw.html