Harrisburg, Pa. – Ollie’s Bargain Outlet trimmed its full-year forecast this morning after reporting its third quarter results.
On the top line, the close-out chain’s net sales climbed 7.8% to $517.4 million. The performance was driven entirely by new stores. Same-store sales dipped 0.5% against the year-ago quarter’s 7.0% increase.
Ollie’s closed out the quarter with546 stores in 31 states, a year-over-year increase in store count of 8.1%. During the quarter ended Nov. 2, the company opened 24 new units and closed three locations, including two permanent closures and one temporary closure related to Hurricane Helene. It plans to open another 50 stores next year.
Operating income increased 14.0% to $44.5 million and operating margin increased 50 basis points to 8.6%. Ollie’s bottom line outpaced Wall Street’s forecast, with net income increasing12.8% to $35.9 million, or $0.58 per diluted share.
“We delivered strong earnings on higher sales, gross margin, and disciplined expense control. We also took advantage of a number of real estate opportunities that strengthened our new store pipeline and enhanced our competitive positioning for the future,” said John Swygert, CEO.
Ollie’s refined its full-year forecast this morning. It now expects:
- Fiscal net sales in the range of $2.270 billion to $2.280 billion, down slightly from $2.276 billion to $2.291 billion
- Comp increases in the range of 2.7% to 3.0%, lowering the upper end of the range, which was previously set at 3.2%
In early 2025, Ollie’s executive VP and chief operating officer Eric van der Valk will succeed Swygert, who will retire after more than 20 years at the company. The company announced the transition in June.