Ollie’s Bargain Outlet Holdings, Inc. (OLLI) Q1 2026: Earnings Growth Outpaces Expectations — Positive Outlook

Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported a strong first quarter for fiscal 2026, with net sales increasing by $82.2 million or +14.2% year-over-year, reaching $658.9 million compared to $576.8 million in the same quarter last year. This performance not only reflects robust growth but also exceeds market expectations, marking a solid start to the fiscal year.

The quarter was undoubtedly a good one for shareholders, as the company demonstrated significant earnings growth alongside a strategic focus on expansion and shareholder returns. The increase in net income was notable, rising by $8.8 million or +18.5% year-over-year to $56.4 million, while earnings per share (EPS) increased by $0.15 or +19.5% to $0.92, compared to $0.77 in Q1 2025. Adjusted earnings per share also saw a substantial increase of 21.3%, reaching $0.91 from $0.75 in the prior year.

Key Financial Metrics:

• Net Sales: $658,928 (up $82,161 or +14.2% YoY)
• Net Income: $56,400 (up $8,840 or +18.5% YoY)
• Earnings Per Share (EPS): $0.92 (up $0.15 or +19.5% YoY)
• Adjusted EPS: $0.91 (up $0.16 or +21.3% YoY)
• Adjusted EBITDA: $87,892 (up $15,733 or +21.8% YoY)
• Comparable Store Sales: +1.7% (down from +2.6% YoY)

The company also reported a gross margin increase of 80 basis points to 41.9%, driven by lower supply chain costs and a modest increase in merchandise margin. This improvement in margins, coupled with disciplined expense control, underscores the effectiveness of Ollie’s operational strategies.

In terms of shareholder returns, Ollie’s repurchased $53.4 million worth of its common stock during the quarter, acquiring 542,486 shares. This reflects the company’s commitment to returning value to shareholders, with $205.4 million remaining under the current share repurchase authorization.

Outlook and Guidance Changes:

Ollie’s has raised its earnings per share outlook for the fiscal year ending January 30, 2027. The new guidance includes:

• Adjusted Net Income per Diluted Share: $4.45 to $4.55 (up from $4.40 to $4.50)
• Net Sales: $2.980 to $3.000 billion (slightly down from $2.985 to $3.013 billion)
• Comparable Store Sales Growth: ~2% (unchanged)
• Gross Margin: ~40.7% (up from ~40.5%)

This upward revision in EPS guidance is a positive signal for investors, indicating management's confidence in the company's growth trajectory and operational efficiency.

Forward Catalysts:

Investors should keep an eye on Ollie’s continued expansion efforts, as the company opened 27 new stores during the quarter, bringing the total to 672 stores across 35 states, representing a year-over-year growth of 15.1%. Additionally, the growth of the Ollie’s Army loyalty program, which increased by 12.6% to 17.5 million members, could further drive sales and customer engagement in the coming quarters.

Overall, Ollie’s Bargain Outlet has delivered a strong performance in Q1 2026, showcasing its resilience and ability to grow in a challenging retail environment. The combination of solid financial results, strategic initiatives, and an optimistic outlook positions the company favorably for future growth, making it an attractive option for investors looking for exposure in the off-price retail sector.

Note: All amounts in the following tables are in thousands.

Thirteen weeks ended	May 2, 2026	May 3, 2025
Net sales	$658,928	$576,767
Cost of sales	$382,964	$339,736
Gross profit	$275,964	$237,031
Selling, general and administrative expenses	$188,682	$164,832
Depreciation and amortization expenses	$11,283	$9,357
Pre-opening expenses	$6,442	$6,656
Operating income	$69,557	$56,186
Interest income, net	$-4,966	$-4,788
Income before income taxes	$74,523	$60,974
Income tax expense	$18,123	$13,414
Net income	$56,400	$47,560

Assets	May 2, 2026	May 3, 2025
Current assets: Cash and cash equivalents	$197,673	$199,018
Short-term investments	$51,886	$170,490
Inventories	$686,922	$611,852
Accounts receivable	$4,887	$2,348
Prepaid expenses and other current assets	$19,621	$14,313
Total current assets	$960,989	$998,021
Property and equipment, net	$398,308	$346,151
Operating lease right-of-use assets	$680,820	$639,664
Goodwill	$444,850	$444,850
Trade name	$230,559	$230,559
Long-term investments	$276,038	$45,355
Other assets	$2,335	$2,379
Total assets	$2,993,899	$2,706,979

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