Ollie's Bargain Outlet Reports 14.2% Revenue Growth in Q1 Fiscal 2026

Ollie's Bargain Outlet Holdings, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2026, ending May 2, 2026. The company achieved net sales of $658.9 million, a 14.2% increase from $576.8 million in the same period last year. Gross profit also rose to $276.0 million, reflecting a 16.4% increase, while net income increased by 18.6% to $56.4 million, compared to $47.6 million in the prior year. Earnings per share for the quarter were $0.93 on a basic basis, up from $0.78 a year earlier.

The growth in sales was attributed to both new store openings and a 1.7% increase in comparable store sales, although this was a decrease from the 2.6% increase reported in the previous year. The company opened 27 new stores during the quarter, compared to 25 in the same period last year, bringing the total number of stores to 672 across 35 states. The increase in gross margin to 41.9% from 41.1% was driven by lower supply chain costs and a modest increase in merchandise margin.

Ollie's also reported an increase in selling, general, and administrative expenses (SG&A), which rose to $188.7 million, a 14.5% increase from $164.8 million in the prior year. This increase was primarily due to higher selling expenses associated with new store growth. Pre-opening expenses decreased slightly to $6.4 million from $6.7 million, reflecting lower dark rent expenses related to bankruptcy-acquired stores. The company’s interest income, net, was $5.0 million, up from $4.8 million, primarily due to higher average cash and investment balances.

Looking ahead, Ollie's plans to continue its growth strategy with an estimated capital expenditure of $103 to $113 million for fiscal 2026, primarily for the opening of 75 new stores and improvements to existing locations. The company has $249.6 million in cash and cash equivalents and short-term investments, along with $89.6 million available under its $100 million revolving credit facility, which it believes will be sufficient to meet its capital needs over the next 12 months. The company remains focused on expanding its footprint while managing expenses and maintaining its competitive pricing strategy in the off-price retail market.