Ollie’s Bargain Outlet Gains Momentum on 17.5% Sales Growth and 47% Trading Volume Spike as Guidance Raised

Ollie’s Bargain Outlet (OLLI) rose 0.60% on August 28, 2025, with a trading volume of $340 million, up 47.1% from the prior day. The company reported second-quarter fiscal 2025 results showing 17.5% year-over-year sales growth to $679.6 million, driven by 5.0% comparable store sales gains and the addition of 29 new stores, expanding its total store count to 613 across 34 states. Net income per diluted share increased 25.0% to $0.99, supported by a 200-basis-point improvement in gross margin to 39.9% and operating margin growth of 80 basis points to 11.3%. Ollie’s Army loyalty program added 10.6% to reach 16.1 million members, reflecting strong customer retention and acquisition.

The company raised full-year guidance, now targeting $2.631–2.644 billion in sales, 3.0–3.5% comparable store sales growth, and adjusted earnings per share of $3.76–3.84. Strategic initiatives, including the reimagined Ollie’s Days event, boosted sales and member engagement, contributing to a 100-basis-point lift in Q2 comp sales. Management highlighted strengths in consumer staples and seasonal categories, alongside disciplined cost management and supply chain efficiency. The firm’s balance sheet remains robust, with cash and investments rising 30.3% year-over-year to $460.3 million, supporting continued expansion plans.

Market reaction to the earnings beat was muted, with the stock trading near its 52-week high. Analysts noted the company’s ability to leverage its scale while maintaining value-driven pricing. Risks include macroeconomic pressures, supply chain disruptions, and competition in the discount retail sector. Ollie’s expects to open 85 stores in 2025, up from 75 previously, and aims to sustain momentum through its loyal customer base and strategic store openings. The raised guidance underscores confidence in operational execution and market share gains amid industry headwinds.

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