Ollie's Bargain Outlet Q2 Fiscal 2026 Earnings Call: Comps Fall, Guidance Revised
Source Tradingkey
Key Takeaways
- Ollie’s Bargain Outlet (NASDAQ: OLLI) reported a 9.1% increase in second-quarter fiscal 2026 net sales to $741 million, supported by new stores. Comparable-store sales declined 1.8%, with flat transactions and a lower average basket.
- Gross margin expanded 360 basis points to 43.5%. Tariff refunds contributed 380 basis points, partly offset by price investments and lower merchandise margin.
- Adjusted net income rose 40% to $85 million, while adjusted diluted EPS increased 43% to $1.42. Adjusted EBITDA grew 36% to $127 million.
- Management lowered its second-half sales assumptions to reflect recent trends, unfavorable weather, consumer pressure and elevated promotional activity. Full-year comparable-store sales are now expected to range from flat to positive 0.5%.
- The company still plans to open 75 stores in fiscal 2026. It opened 42 stores during the first half and said its fiscal 2027 real estate pipeline is largely in place.
- Ollie’s ended the quarter with $507 million in cash and investments and no meaningful long-term debt. The company raised its planned fiscal 2026 share repurchases to $175 million.
Core Financial Results
| Metric | Q2 fiscal 2026 result | Change / Commentary |
|---|---|---|
| Net sales | $741 million | Up 9.1%, driven by new stores |
| Comparable-store sales | Down 1.8% | Transactions were flat; basket size declined |
| Gross margin | 43.5% | Up 360 basis points; tariff refunds added 380 basis points |
| SG&A as a percentage of sales | 26.6% | Up 80 basis points due mainly to fixed-cost deleverage and higher marketing expense |
| Preopening expenses | $5 million | Down 42% |
| Adjusted net income | $85 million | Up 40% |
| Adjusted diluted EPS | $1.42 | Up 43% |
| Adjusted EBITDA | $127 million | Up 36% |
| Adjusted EBITDA margin | 17.1% | Up 330 basis points |
| Cash and investments | $507 million | Up 10% year over year |
| Inventory | — | Up 11%, primarily due to new-store growth |
| Capital expenditures | $43 million | Focused on new stores, existing-store improvements and the Texas distribution center |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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