Ollie's Q1 2025: Navigating Contradictions in Tariffs, Market Share, and Inventory Outlook

Tariff environment and its impact on negotiations with suppliers, Big Lots impact on market share opportunity and competition, impact of Big Lots closures on deal flow, Q2 comp and inventory outlook, tariff impact on pricing strategy are the key contradictions discussed in Ollie's Bargain Outlet Holdings' latest 2025Q1 earnings call.



Accelerated Store Growth and Market Share Gains:
- Ollie's Bargain Outlet opened 25 new stores in Q1 2025, exceeding expectations and marking a record for the company.
- The growth was driven by the acquisition of former Big Lots locations, which benefitted from a warm box effect with a built-in customer base that aligns with Ollie's value proposition.

Strong Financial Performance:
- Net sales increased 13% to $577 million, with 25 new store openings contributing to the growth.
- Comparable store sales increased by 2.6%, driven by an increase in transactions despite challenging comparisons with Big Lots liquidations.

Tariff and Trade Dynamics:
- Tariffs have been incorporated into the company's financial outlook, impacting gross margin and supply chain costs.
- Ollie's continued investment in price maintenance and flexibility in supply chain operations, offsetting some tariff pressures.

Enhancing Customer Loyalty and Program Expansion:
- Ollie's Army members increased by 9% to 15.5 million, representing over 80% of total sales.
- The company introduced enhancements to its loyalty program, including a new private shopping event and exclusive promotions for members, to drive long-term customer retention and growth.