Ollie's Earnings Rise Despite Decline in Comparable Sales
Ollie’s Bargain Outlet (NASDAQ:OLLI) reported a 43% increase in earnings for the second quarter of fiscal year 2026, driven by store expansion and cost savings from tariff refunds. The company opened 15 new stores during the period, bringing its total to 686 locations across 36 states—a 11.9% annual growth rate. Despite this physical footprint increase, comparable sales fell by 1.8%, attributed in part to a smaller average basket size and economic pressures on consumers. The company’s gross margin improved significantly due to IEEPA tariff refunds that added nearly four percentage points to its margins. This helped offset the decline in same-store sales and contributed to an adjusted net income of $85.4 million, up 40.3% year-over-year. However, SG&A expenses rose slightly as a share of revenue amid slower comparable sales growth. Ollie’s revised full-year guidance reflects softer expectations for second-half performance but still anticipates total annual sales between $2.928 billion and $2.941 billion. Institutional ownership remains stable with FMR, BlackRock, and Wasatch Advisors among the top holders.
Topics: comparable sales decline earnings loyalty program growth retail expansion