Ollie's Bargain Outlet Reports 9.1% Revenue Growth to $741.3 Million

Ollie's Bargain Outlet Holdings, Inc. reported significant financial growth in its latest quarterly filing, with net sales reaching $741.3 million for the thirteen weeks ended August 1, 2026, a 9.1% increase from $679.6 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $322.2 million, up 18.7% from $271.3 million. This growth in revenue and profitability was driven by new store openings, although comparable store sales experienced a slight decline of 1.8%, compared to a 5.0% increase in the prior year.

In terms of profitability, Ollie's reported a net income of $85.5 million for the second quarter, a 39.4% increase from $61.3 million in the same quarter of the previous year. The company's operating income rose to $108.5 million, up from $77.0 million, reflecting improved gross margins, which increased to 43.5% from 39.9%. This improvement was attributed to lower supply chain costs, including benefits from IEEPA tariff refunds. Selling, general, and administrative expenses also increased, totaling $197.2 million, which represented 26.6% of net sales, up from 25.8% in the prior year.

Ollie's continued its expansion strategy, opening 15 new stores during the second quarter, bringing the total number of stores to 686 across 36 states. This marks a strategic shift from the previous year, where 29 new stores were opened in the same quarter. The company also reported a decrease in pre-opening expenses, which fell to $5.2 million from $9.0 million, reflecting the reduced number of new store openings. The company’s employee headcount and customer engagement metrics were not disclosed in the filing.

Looking ahead, Ollie's management expressed optimism about future growth, citing plans to open approximately 75 new stores in fiscal 2026, with capital expenditures projected between $103 million and $113 million. The company also highlighted its strong liquidity position, with $187.5 million in cash and cash equivalents and short-term investments, alongside $88.4 million available under its revolving credit facility. However, management acknowledged potential risks, including economic conditions that could impact consumer spending and the competitive landscape.

Overall, Ollie's Bargain Outlet's latest financial results reflect a solid performance driven by strategic store openings and improved gross margins, despite challenges in comparable store sales. The company remains focused on expanding its footprint and enhancing its operational efficiency as it navigates the retail landscape.