Ollie’s Bargain Outlet (NASDAQ:OLLI) Announces Quarterly Earnings Results, Beats Estimates By $0.30 EPS

Ollie’s Bargain Outlet (NASDAQ:OLLI) posted its quarterly earnings results on Wednesday. The company reported $1.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.12 by $0.30, Briefing.com reports. The firm had revenue of $741.31 million during the quarter, compared to the consensus estimate of $747.71 million. Ollie’s Bargain Outlet had a return on equity of 13.43% and a net margin of 9.13%.The business’s revenue was up 9.1% compared to the same quarter last year. During the same period last year, the company earned $0.99 earnings per share. Ollie’s Bargain Outlet updated its FY 2026 guidance to 4.570-4.650 EPS.

Here are the key takeaways from Ollie’s Bargain Outlet’s conference call:

• Comparable-store sales declined 1.8% in Q2, pressured by unfavorable weather, economic pressure on lower-income consumers, higher fuel costs, and an elevated promotional environment. Lower-income shoppers are prioritizing necessities and shopping less frequently, while some customers are staying closer to home.
• Net sales increased 9.1% to $741 million, supported by new store openings, while adjusted EPS rose 43% to $1.42. The company opened 50 stores in Q2 and remains on track for 75 openings this fiscal year.
• Gross margin expanded 360 basis points to 43.5%, and adjusted EBITDA margin rose to 17.1%, primarily due to $28 million of IEEPA tariff refunds. Management plans to reinvest part of the benefit in price reductions to reinforce Ollie’s value leadership, although the tariff benefit is viewed as temporary.
• Fiscal 2026 guidance was tempered to flat to 0.5% comparable-sales growth and adjusted EPS of $4.57 to $4.65, reflecting weaker recent trends. Management expects a modest sales acceleration in Q4, citing strong holiday deal flow, loyalty events, and more favorable comparisons.
• Customer engagement and long-term expansion initiatives remain strong, with Ollie’s Army membership up 13% to more than 18 million members, a robust closeout sourcing pipeline, distribution-center investments, and $137 million of share repurchases completed through the first half.

Ollie’s Bargain Outlet Stock Up 2.1%

OLLI opened at $73.87 on Thursday. Ollie’s Bargain Outlet has a 12-month low of $60.29 and a 12-month high of $139.21. The stock has a market cap of $4.47 billion, a price-to-earnings ratio of 18.24, a PEG ratio of 1.28 and a beta of 0.50. The business has a 50 day moving average of $72.23 and a 200-day moving average of $84.47.

Key Headlines Impacting Ollie’s Bargain Outlet

Here are the key news stories impacting Ollie’s Bargain Outlet this week:

• Positive Sentiment: Second-quarter adjusted EPS rose to $1.42 from $0.99 a year earlier, exceeding analyst estimates near $1.12–$1.14 by a wide margin. Net sales increased 9.1% year over year to $741.3 million, while the company also benefited from tariff refunds. Ollie’s Raises Earnings Outlook on Tariff Refunds Despite Sluggish Sales
• Positive Sentiment: Ollie’s raised fiscal 2026 adjusted EPS guidance to $4.57–$4.65, above the approximately $4.52 consensus, signaling stronger expected profitability. Ollie’s Second Quarter Fiscal 2026 Results
• Positive Sentiment: The retailer opened 15 stores during the quarter, plans to open about 75 locations in fiscal 2026, and expanded its Ollie’s Army loyalty membership by 12.7%, supporting its long-term growth strategy.
• Neutral Sentiment: Consumables were a relative bright spot, but overall comparable-store sales declined 1.8%, suggesting that customer traffic and discretionary demand remain uneven. Consumables Prove to be Bright Spot for Ollie’s in Q2
• Negative Sentiment: Quarterly revenue fell short of the $747.7 million analyst estimate, and fiscal 2026 sales guidance of roughly $2.928–$2.941 billion is below expectations near $3.0 billion. The sales outlook underscores continued caution around consumer spending.

Wall Street Analyst Weigh In

OLLI has been the subject of several recent analyst reports. Truist Financial cut their price objective on Ollie’s Bargain Outlet from $112.00 to $80.00 and set a “buy” rating for the company in a report on Thursday, July 9th. KeyCorp lowered their target price on shares of Ollie’s Bargain Outlet from $140.00 to $98.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $121.00 price target on shares of Ollie’s Bargain Outlet in a research report on Tuesday, August 25th. UBS Group cut their price target on shares of Ollie’s Bargain Outlet from $87.00 to $85.00 and set a “neutral” rating for the company in a research note on Thursday, August 27th. Finally, Piper Sandler decreased their price objective on shares of Ollie’s Bargain Outlet from $114.00 to $113.00 and set an “overweight” rating for the company in a research report on Tuesday, August 18th. Thirteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $107.29.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Allworth Financial LP raised its stake in Ollie’s Bargain Outlet by 301.8% in the 3rd quarter. Allworth Financial LP now owns 221 shares of the company’s stock valued at $28,000 after acquiring an additional 166 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in Ollie’s Bargain Outlet by 49.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 279 shares of the company’s stock worth $31,000 after purchasing an additional 92 shares during the period. Quarry LP bought a new position in Ollie’s Bargain Outlet during the third quarter worth $55,000. Johnson Financial Group Inc. acquired a new position in shares of Ollie’s Bargain Outlet in the third quarter valued at $62,000. Finally, Danske Bank A S acquired a new position in shares of Ollie’s Bargain Outlet in the third quarter valued at $64,000.

Ollie’s Bargain Outlet Company Profile

Ollie’s Bargain Outlet is an American discount retailer specializing in closeout merchandise and surplus inventory across a broad range of categories. The company operates a no-frills retail format that offers branded and private-label products at significant markdowns. Its merchandise mix typically includes housewares, electronics, health and beauty items, food products, beauty supplies, books, toys, and seasonal goods.

Founded in 1982 by Oliver E. “Ollie” Rosenberg, the company is headquartered in Harrisburg, Pennsylvania.