Ollie’s Bargain Outlet reported second-quarter fiscal 2026 net sales of $741.3 million, increasing 9.1% year over year as continued store expansion offset weaker comparable sales.
Comparable-store sales declined 1.8%, compared with 5% growth in the prior-year period, primarily reflecting a lower average basket size.
Ollie’s opened 15 stores during the quarter and ended the period with 686 stores across 36 states, an increase of 11.9%. Ollie’s Army membership increased 12.7% to 18.1 million members.
Net income increased to $85.5 million from $61.3 million, while diluted EPS increased to $1.42 from $0.99. Adjusted EPS also increased 43.4% to $1.42.
Adjusted EBITDA increased to $127.1 million from $93.8 million, representing 17.1% of net sales.
Gross margin expanded 360 basis points to 43.5%, primarily because of lower supply-chain costs, including tariff refunds and lower tariff rates. Tariff refunds contributed approximately 380 basis points to the quarter’s gross margin.
Ollie’s ended the quarter with $507.1 million in total cash and investments and repurchased $84 million of shares.
For fiscal 2026, the company lowered its net sales outlook to $2.928 billion to $2.941 billion and reduced its comparable-sales growth forecast to 0% to 0.5%.
At the same time, Ollie’s raised adjusted EPS guidance to $4.57 to $4.65, from $4.45 to $4.55, reflecting among other factors $28.3 million of tariff refunds that the company intends to reinvest in pricing.
KEY QUOTE:
“We delivered strong earnings growth in the second quarter and continued to execute against our key strategic initiatives. Comparable store sales declined 1.8% against a challenging multi-year stack. We believe our sales results were negatively impacted by the combination of less favorable weather, continued economic pressure on the consumer, and an elevated promotional environment, which all led to a more challenging backdrop than we originally expected.”
“Consumers continue to seek value and many of the same pressures affecting our customers are creating buying opportunities across the closeout market. We continue to see strong deal flow and remain committed to reinvesting in price and strengthening our competitive position. With a flexible business model, deep vendor relationships, growing scale, and a talented team, we believe Ollie’s is well positioned to deliver long-term profitable growth through any retail environment.”
Eric van der Valk, President and Chief Executive Officer of Ollie’s Bargain Outlet
