Ollie's Bargain Outlet Reports 17.5% Revenue Growth, Expands Store Count to 613

Ollie's Bargain Outlet Holdings, Inc. reported significant financial growth in its latest quarterly filing, with net sales reaching $679.6 million for the thirteen weeks ended August 2, 2025, a 17.5% increase from $578.4 million in the same period last year. Year-to-date, the company achieved net sales of $1.256 billion, up 15.6% from $1.087 billion in the prior year. The increase in revenue was primarily driven by new store openings and a 5.0% rise in comparable store sales, although this was a slight decline from the 5.8% increase reported in the previous year.

Gross profit for the second quarter rose 23.9% to $271.3 million, with gross margin improving to 39.9%, up from 37.9% a year earlier. This improvement was attributed to lower supply chain costs and higher merchandise margins. However, selling, general, and administrative (SG&A) expenses also increased by 20.5% to $175.5 million, reflecting higher medical and casualty claims, as well as increased store labor costs. Pre-opening expenses surged 95.3% to $9.0 million, driven by the opening of 29 new stores, 22 of which were acquired from bankrupt retailers.

Operationally, Ollie's expanded its footprint significantly, opening 54 new stores in the first half of fiscal 2025 compared to just 13 in the same period last year. The total number of stores reached 613 across 34 states as of August 2, 2025. The company also reported an increase in net income to $61.3 million for the second quarter, a 25.2% rise from $48.9 million in the prior year. Year-to-date net income was $108.9 million, up 14.2% from $95.3 million.

In terms of liquidity, Ollie's maintained a strong cash position with $231.2 million in cash and cash equivalents as of August 2, 2025, alongside $90.4 million available under its $100 million revolving credit facility. The company has also been active in its share repurchase program, buying back 257,434 shares for $28.6 million during the first half of the fiscal year, leaving $304 million remaining under its repurchase authorization.

Looking ahead, Ollie's plans to continue its growth strategy by opening additional stores and enhancing its product offerings. The company aims to leverage its strong market position and direct relationships with manufacturers to secure better deals and expand its inventory. However, management acknowledged potential risks, including economic fluctuations and changes in consumer spending, which could impact future performance.