Ollie's Bargain Outlet Reports Q2 Earnings Beat Amid Tariff Refunds
Ollie's Bargain Outlet (NASDAQ:OLLI) reported second-quarter earnings that exceeded expectations, with net sales rising 9.1% to $741 million and adjusted EPS increasing by 43% to $1.42. Despite this growth, comparable-store sales fell 1.8%, attributed to flat transaction levels, a lower average basket size, unfavorable weather conditions, selective consumer spending, elevated promotions, and weak seasonal categories. Tariff refunds significantly boosted gross margins and EBITDA during the quarter, contributing over 300 basis points of improvement in adjusted EBITDA margin to 17.1%. The company plans $50 million in price investments for the year to maintain its value advantage while navigating a challenging consumer environment. Ollie's remains on track with store expansion goals and expects fiscal 2026 adjusted EPS between $4.57 and $4.65, alongside $175 million of planned share repurchases.
Topics: expansion financial_performance retail