Ollies Bargain 2026 Q2 Earnings Net Income Surges 25.2%

Ollie's Bargain reported a strong second quarter, exceeding expectations with a 17.5% revenue increase and a 25.2% rise in net income. The company raised its full-year revenue and EPS guidance, reflecting confidence in its continued growth and market expansion.

Revenue
Ollie's Bargain's total revenue surged to $679.56 million in 2026 Q2, marking a 17.5% year-over-year increase from $578.38 million in the same period of the previous year. Net sales accounted for the entire revenue figure, underscoring the company’s robust performance in driving customer traffic and sales volume.

Earnings/Net Income
The company’s earnings per share (EPS) grew 25.0% year-over-year to $1.00, up from $0.80 in 2025 Q2. Net income also showed impressive growth, reaching $61.31 million in 2026 Q2, a 25.2% increase compared to $48.98 million in 2025 Q2. These results reflect Ollie’s sustained profitability for 12 consecutive years in the corresponding fiscal quarter, highlighting its strong operational performance and consistent profitability.

Price Action
Following the earnings report, Ollie's Bargain’s stock experienced a decline in the short term, dropping 5.26% on the latest trading day and 2.04% over the most recent full trading week. Over the past month, the stock price fell 4.71%, reflecting investor reaction to the market conditions and valuation concerns.

Post-Earnings Price Action Review
Ollie’s Bargain Outlet (OLLI) demonstrated strong financial performance and growth potential in Q2 2026. The company exceeded expectations with a 17.5% year-on-year sales increase, reaching $679.6 million, surpassing analyst estimates of $661.9 million. This growth highlights the company’s ability to capitalize on retail disruptions and supply chain improvements. The adjusted EPS of $0.99 exceeded analyst expectations of $0.93, representing a 6.8% beat. Adjusted EBITDA also showed significant growth, reaching $93.79 million compared to analyst estimates of $87.36 million, marking a 7.4% beat. Ollie's raised its full-year 2025 guidance, anticipating 85 new store openings, net sales of $2.631 billion to $2.644 billion, and adjusted EPS of $3.76 to $3.84. With a stable operating margin of 11.3%, the company is well-positioned to navigate the competitive retail environment and maintain profitability through strategic expansion and customer engagement initiatives.

CEO Commentary
Eric van der Valk, CEO of Ollie's Bargain Outlet, highlighted the company’s strong second-quarter performance, emphasizing new store openings, sales growth, and improved execution as key drivers. He noted the opportunity to gain market share through expansion and customer acquisition, calling it the company’s “flywheel” for growth. Van der Valk reiterated the focus on profitable expansion, leveraging a flexible store model and the “warm box” advantage from acquired locations. He praised the revamped Ollie’s Army event for driving customer loyalty and sales, calling it a “huge success.” Looking ahead, he expressed optimism about continuing to open new stores, strengthen customer relationships, and maintain momentum in a competitive retail environment.

Guidance
Ollie’s raised its full-year 2025 guidance, expecting 85 new store openings, net sales of $2.631 billion to $2.644 billion, and adjusted EPS of $3.76 to $3.84. The company projects comparable store sales growth of 3% to 3.5%, gross margin of 40.3%, and adjusted EBITDA of $94 million in Q2. Capital expenditures are forecast at $83 million to $88 million, including store expansions and supply chain investments. The company expects third-quarter comp growth above its long-term 1% to 2% range and plans to leverage its balance sheet strength to drive shareholder returns.

Additional News
Recent non-earnings related news in the financial and business sector includes:
1. C-Level Changes: Zhou Xinhuai has been appointed as the new General Manager of China National Petroleum Corporation.
2. M&A Activity: The China Three Gorges Corporation announced adjustments to its leadership structure, indicating potential strategic realignment.
3. Dividend/Buyback News: The State Grid Corporation of China has signaled its commitment to strengthening public safety and infrastructure through strategic investments and improved operational efficiency.

These developments reflect broader trends in corporate leadership and strategic investment in key industries.