Ollie's Bargain Outlet Reports 7.8% Increase in Q3 Net Sales, Plans 50 New Store Openings

Ollie's Bargain Outlet Holdings, Inc. reported a notable increase in financial performance for the third quarter of fiscal 2024, with net sales reaching $517.4 million, up 7.8% from $480.1 million in the same period last year. The company's gross profit also saw a significant rise, climbing to $214.5 million, a 10.5% increase compared to $194.1 million in the prior year. This growth in revenue and profitability was attributed to a combination of new store openings and an increase in non-comparable store sales, which contributed $39.8 million to the overall sales increase, despite a slight decline in comparable store sales.

In the year-to-date results, Ollie's reported net sales of $1.605 billion for the thirty-nine weeks ended November 2, 2024, marking a 10.4% increase from $1.454 billion in the previous year. The increase was driven by a $110.6 million rise in non-comparable store sales and a $40.4 million increase in comparable store sales. The company opened 37 new stores during this period, while closing three, bringing the total number of stores to 546 across 31 states. The average net sales per store for the year-to-date period was approximately $3.071 million.

Ollie's continued to invest in its growth strategy, which includes expanding its store footprint and enhancing its distribution capabilities. The company recently completed the construction of its fourth distribution center in Princeton, IL, which is expected to support up to 750 stores. Additionally, Ollie's has been actively acquiring former 99 Cents Only and Big Lots store locations, further bolstering its market presence. The company reported a total capital expenditure of $96.2 million for the thirty-nine weeks ended November 2, 2024, compared to $81.4 million in the same period last year.

The company's selling, general, and administrative expenses (SG&A) increased to $442.6 million for the year-to-date period, up 8.9% from $406.6 million in the previous year. However, as a percentage of net sales, SG&A decreased to 27.6%, reflecting improved operational efficiency. Net income for the thirty-nine weeks ended November 2, 2024, was $131.2 million, a 25% increase from $105 million in the prior year, while adjusted EBITDA rose to $203.7 million, up 23.8% year-over-year.

Looking ahead, Ollie's plans to continue its expansion strategy, targeting the opening of approximately 50 new stores in fiscal 2024. The company remains focused on leveraging its unique value proposition and enhancing its customer experience to drive sales growth. Despite potential challenges from macroeconomic conditions, Ollie's management believes that its strong operational framework and market positioning will support sustained growth in the coming periods.