Ollie’s Bargain Outlet Holdings (OLLI) Q3 2025 Financial Results Summary

2025-12-09 · Stocks · QuoteReporter

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) Q3 2025 Financial Results Summary

Released on December 9, 2025, Ollie’s Bargain Outlet Holdings, Inc. announced its financial results for the third quarter ended November 1, 2025. The company exhibited strong growth across various metrics, including net sales and earnings per share.

Key Financial Highlights

Net Sales
Total net sales reached $613.6 million, an 18.6% increase from $517.4 million in Q3 2024 (previous quarter year).
Comparable Store Sales
Achieved a 3.3% increase in comparable store sales, compared to a decrease of 0.5% in Q3 2024.
Net Income
Net income rose to $46.2 million, reflecting a 29.3% increase from $35.9 million in the same quarter last year.
Earnings Per Share (EPS)
Earnings per diluted share stood at $0.75, an increase of 29.3% from $0.58 in Q3 2024.
Adjusted Net Income
Adjusted net income per diluted share also reached $0.75, maintaining the same 29.3% year-over-year growth.
Adjusted EBITDA
Adjusted EBITDA experienced a 21.8% increase to $72.9 million from $59.8 million a year earlier, with the adjusted EBITDA margin rising to 11.9% (up 30 basis points).
Gross Margin
The gross margin experienced a slight decrease of 10 basis points to 41.3%, attributed to higher supply chain costs.
Operating Income
Operating income increased to $55.4 million, marking a 24.5% growth compared to $44.5 million last year, with the operating income margin improving 40 basis points to 9.0%.

Operational Highlights

Store Openings
The company opened a record 32 new stores during the quarter, totaling 645 stores across 34 states, representing an 18.1% increase in store count year-over-year.
Ollie’s Army Loyalty Program
Membership in the Ollie’s Army loyalty program increased by 11.8%, reaching 16.6 million members.

Cost Management

Selling, General, and Administrative (SG&A) Expenses
SG&A expenses as a percentage of net sales were reduced to 29.4%, down 50 basis points, aided by lower professional fees and stock-based compensation.
Pre-Opening Expenses
Pre-opening expenses were reported at $7.4 million, a 3.2% increase, influenced by new store openings and associated costs.

Cash and Investments

Total Cash and Investments
Increased by 42.2% to $432.2 million, which includes cash equivalents of $144.7 million and long-term investments of $246.1 million.

Financial Outlook

In response to strong performance and positive momentum, the company raised its full-year sales and earnings outlook for fiscal 2025:
Net Sales: Expected to range between $2.648 billion and $2.655 billion, up from earlier expectations of $2.631 to $2.644 billion.
Comparable Store Sales Growth: Forecasted growth to be between 3.2% to 3.5%, revised from 3.0% to 3.5%.
Operating Income: Expected to be between $293 million and $298 million against the prior outlook of $292 to $298 million.

Share Repurchase Activity

During the quarter, the company engaged in share repurchases totaling $11.6 million, decreasing from $15.8 million during the same period last year.

Conclusion

Ollie’s Bargain Outlet Holdings, Inc. has demonstrated robust growth through strong sales performance and effective management of operational expenses. The company’s strategic focus on store openings and customer loyalty initiatives has positioned it favorably as it heads into the holiday season. With a strengthened financial outlook for the remainder of the fiscal year, Ollie’s remains committed to its mission of providing value to its customers.

For further details, stakeholders are invited to participate in the conference call scheduled for December 9, 2025, at 8:30 a.m. Eastern Time.

Condensed Consolidated Statements of Income (unaudited) (In thousands except for per share amounts)

	Thirteen weeks ended		Thirty-nine weeks ended
	November 1, 2025	November 2, 2024	November 1, 2025	November 2, 2024
Net sales	$613,619	$517,428	$1,869,942	$1,604,621
Cost of sales	359,965	302,969	1,107,919	961,773
Gross profit	253,654	214,459	762,023	642,848
Selling, general and administrative expenses	180,273	154,467	520,581	442,559
Depreciation and amortization expenses	10,566	8,296	29,839	24,016
Pre-opening expenses	7,401	7,174	23,029	14,495
Operating income	55,414	44,522	188,574	161,778
Interest income, net	(4,524)	(4,028)	(13,846)	(12,257)
Income before income taxes	59,938	48,550	202,420	174,035
Income tax expense	13,766	12,666	47,378	42,827
Net income	$46,172	$35,884	$155,042	$131,208
Earnings per common share:
Basic	$0.75	$0.59	$2.53	$2.14
Diluted	$0.75	$0.58	$2.51	$2.13
Weighted average common shares outstanding:
Basic	61,346	61,330	61,343	61,341
Diluted	61,814	61,764	61,809	61,742
Percentage of net sales:
Net sales	100.0%	100.0%	100.0%	100.0%
Cost of sales	58.7	58.6	59.2	59.9
Gross profit	41.3	41.4	40.8	40.1
Selling, general and administrative expenses	29.4	29.9	27.8	27.6
Depreciation and amortization expenses	1.7	1.6	1.6	1.5
Pre-opening expenses	1.2	1.4	1.2	0.9
Operating income	9.0	8.6	10.1	10.1
Interest income, net	(0.7)	(0.8)	(0.7)	(0.8)
Income before income taxes	9.8	9.4	10.8	10.8
Income tax expense	2.2	2.4	2.5	2.7
Net income	7.5%	6.9%	8.3%	8.2%
Components may not add to totals due to rounding.

Condensed Consolidated Balance Sheets (unaudited) (In thousands)

	November 1, 2025	November 2, 2024
Assets
Current assets:
Cash and cash equivalents	$144,699	$128,685
Short-term investments	41,315	175,226
Inventories	702,832	607,331
Accounts receivable	2,537	2,367
Prepaid expenses and other current assets	12,421	10,178
Total current assets	903,804	923,787
Property and equipment, net	374,014	322,214
Operating lease right-of-use assets	652,723	547,284
Goodwill	444,850	444,850
Trade name	230,559	230,559
Long-term investments	246,149	–
Other assets	2,944	2,148
Total assets	$2,855,043	$2,470,842
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$621	$621
Accounts payable	155,882	131,515
Income taxes payable	–	–
Current portion of operating lease liabilities	95,680	93,199
Accrued expenses and other current liabilities	109,410	91,772
Total current liabilities	361,593	317,107
Long-term debt	1,102	1,003
Deferred income taxes	86,450	73,073
Long-term portion of operating lease liabilities	573,308	462,687
Total liabilities	1,022,453	853,870
Stockholders’ equity:
Common stock	68	67
Additional paid-in capital	757,721	719,751
Retained earnings	1,522,755	1,299,159
Treasury – common stock	(447,954)	(402,005)
Total stockholders’ equity	1,832,590	1,616,972
Total liabilities and stockholders’ equity	$2,855,043	$2,470,842