Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) stock fell Tuesday after the company reported third-quarter earnings.
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The company reported third-quarter adjusted earnings per share of 75 cents, beating the analyst consensus estimate of 73 cents. Quarterly sales of $613.62 million, up 18.6% year over year, missed the Street view of $614.397 million.
Net sales were driven by new store unit growth and an increase in comparable store sales. Comparable store sales increased 3.3%, driven by continued strength in transactions.
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Gross margin decreased 10 basis points to 41.3%, driven by higher supply chain costs, primarily incremental tariff expenses, which were partially offset by higher merchandise margins.
Operating income increased 24.5% to $55.4 million, and operating income margin increased 40 basis points to 9.0%. Adjusted EBITDA increased 21.8% to $72.9 million, and adjusted EBITDA margin increased 30 basis points to 11.9%.
Ollie’s Army loyalty members increased 11.8% to 16.6 million members.
Ollie’s posted a strong third quarter with record store openings, rising loyalty membership, wider price gaps, and solid profit improvement, the company said.
Management said the retailer is well prepared for the holiday season with expanded seasonal assortments and deep discounts on name-brand goods.
Outlook
“With the better-than-expected third-quarter results and a very good start to the fourth quarter, we are raising our full-year sales and earnings outlook,” said Eric van der Valk, President and CEO.
Ollie’s Bargain Outlet raised its fiscal 2025 adjusted earnings per share guidance from $3.76–$3.84 to $3.81-$3.87, compared with the analyst estimate of $3.85.
The discount retailer raises 2025 sales guidance from $2.631 -$2.644 billion to $2.648 -$2.655 billion versus the consensus of $2.644 billion.
Looking ahead, the company is currently targeting 75 new store openings in fiscal 2026, with the majority of these planned to open in the first half of the fiscal year.
OLLI Price Action: Ollie’s Bargain Outlet shares were down 5.72% at $112.00 during premarket trading on Tuesday, according to Benzinga Pro data.
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