Ollies Bargain 2026 Q1 Earnings Strong Performance as Revenue Increases 13.4%

Ollie's Bargain (OLLI) reported its fiscal 2026 Q1 earnings on June 3, 2025. Revenue increased by 13.4% to $576.77 million compared to the same quarter last year. The company's earnings per share (EPS) rose to $0.78, surpassing expectations. Ollie's maintained its fiscal 2025 guidance, projecting strong net sales and earnings per share, while continuing its aggressive store expansion plan. The company remains optimistic about overcoming challenges and delivering value to its customers.

Revenue

Ollie's Bargain saw its total revenue rise to $576.77 million for the first quarter of 2026, a 13.4% increase from $508.82 million in the same quarter of the previous year. This growth was driven by various segments, with consumables generating $188.91 million, home goods contributing $172.67 million, seasonal items bringing in $102.48 million, and other categories adding $112.70 million.

Earnings/Net Income

Ollie's Bargain achieved an EPS increase of 2.6%, reaching $0.78 in 2026 Q1 from $0.76 in 2025 Q1. The company's net income improved to $47.56 million, marking a 2.6% increase. This consistent growth in earnings highlights Ollie's stable performance.

Post-Earnings Price Action Review

The post-earnings strategy of acquiring Ollie's Bargain shares after quarterly revenue drops and holding for 30 days has proven highly effective over the past three years. This approach yielded a remarkable 117.47% return, significantly outperforming the benchmark's 38.41% return. The strategy generated an excess return of 79.06%, indicating proficient capitalization on post-revenue drop price movements. With a compound annual growth rate of 29.87%, the strategy demonstrated robust performance despite a maximum drawdown of -41.03%. The Sharpe ratio of 0.73 reflects a reasonable risk-adjusted return profile, while a volatility of 40.80% suggests returns were not overly dependent on any single factor, supported by a broad base of contributors.

CEO Commentary

Eric van der Valk, President and CEO, expressed optimism about Ollie's performance, highlighting "accelerated growth" with 25 new store openings in Q1. He emphasized strong financial results, driven by robust deal flow and buying power. Despite challenges from Big Lots store liquidations, he highlighted the company's adaptability and strong customer loyalty through the Ollie's Army program. He reaffirmed commitment to delivering value, stating, "Good stuff cheap has been our mission from day 1."

Guidance

Ollie's anticipates net sales between $2.579 billion and $2.599 billion for fiscal year 2025, with adjusted net income projected between $225 million and $232 million. The company expects earnings per share in the range of $3.65 to $3.75. This guidance encompasses plans to open 75 new stores and achieve comparable store sales growth of 1.4% to 2.2%. Gross margin is targeted at 40%, with capital expenditures estimated between $83 million and $88 million, covering investments in new store openings and supply chain enhancements.

Additional News

In recent news, Ollie's Bargain Outlet Holdings, Inc. announced a share repurchase program, investing $17.1 million to buy back 159,757 shares of its common stock. This move underscores the company's confidence in its financial performance and commitment to enhancing shareholder value. Additionally, Ollie's recently completed the rollout of its co-branded credit card program, which has shown promising early results in increasing customer spending and shopping frequency. The program aims to strengthen customer loyalty and provide valuable insights into consumer behavior. These initiatives reflect Ollie's strategic focus on growth and customer engagement.