Ollie's Bargain Outlet Reports 13.4% Sales Increase in Q1 Fiscal 2025

Ollie's Bargain Outlet Holdings, Inc. reported a net sales increase of 13.4% for the first quarter of fiscal 2025, reaching $576.8 million compared to $508.8 million in the same period last year. The company's gross profit also rose to $237.0 million, maintaining a gross margin of 41.1%. Despite a slight decrease in operating income to $56.2 million from $56.5 million, net income increased to $47.6 million, reflecting a 2.6% rise from $46.3 million in the prior year. Earnings per share improved, with basic earnings at $0.78 and diluted earnings at $0.77, compared to $0.76 and $0.75, respectively, in the previous year.

The company opened 25 new stores during the quarter, significantly up from just four new stores opened in the same quarter of the previous year. This expansion brought the total number of stores to 584 across 32 states. The increase in store count contributed to a 2.6% rise in comparable store sales, although this was a slight decline from the 3.0% increase reported in the prior year. The growth in sales was attributed to both new store openings and an increase in customer transactions.

Ollie's also reported a rise in selling, general, and administrative expenses (SG&A), which increased to $164.8 million from $142.4 million, primarily due to higher selling expenses associated with new store growth. Pre-opening expenses surged to $6.7 million, driven by the costs associated with the new store openings and dark rent from acquired stores. The company’s effective tax rate decreased to 22.0% from 23.8%, benefiting from excess tax benefits related to stock-based compensation.

In terms of liquidity, Ollie's had $369.5 million in cash and cash equivalents and short-term investments as of May 3, 2025, with $91.9 million available under its $100 million revolving credit facility. The company reported net cash provided by operating activities of $28.7 million, down from $40.2 million in the prior year, primarily due to changes in working capital. For the remainder of fiscal 2025, Ollie's plans to invest approximately $83 to $88 million in capital expenditures, focusing on the opening of 75 new stores and enhancements to existing locations.

Looking ahead, Ollie's management remains optimistic about growth, emphasizing their strategy of expanding the store base and enhancing product offerings. The company aims to leverage its strong relationships with manufacturers to secure better deals and increase its market share. Despite potential challenges from economic fluctuations and consumer spending habits, Ollie's continues to focus on providing value to customers through its unique retail model.