SEC Form 10-Q filed by Ollie's Bargain Outlet Holdings Inc.
$OLLI
Department/Specialty Retail Stores
Consumer Discretionary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Form 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended November 1, 2025
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
| | | |
| (Commission File Number) | (IRS Employer Identification No.) |
| | | |
| (Address of principal executive offices) | (Zip Code) |
| ( |
| (Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of each exchange on which registered |
| | | The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company ☐ | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of the registrant’s common stock, $0.001 par value, outstanding as of December 3, 2025 was 61,332,549 .
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PART I - FINANCIAL INFORMATION
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Page
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Item 1.
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1
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1
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2
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3
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4
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5
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Item 2.
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19
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Item 3.
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31
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Item 4.
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31
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PART II - OTHER INFORMATION
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Item 1.
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32
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Item 1A.
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32
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Item 2.
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32
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Item 5.
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33
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Item 6.
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34
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ITEM 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
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Thirteen weeks ended
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Thirty-nine weeks ended
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November 1,
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November 2,
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November 1,
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November 2,
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|||||||||||||
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2025
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2024
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2025
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2024
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|||||||||||||
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Net sales
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$
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$
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$
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$
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Cost of sales
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Gross profit
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Selling, general, and administrative expenses
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Depreciation and amortization expenses
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Pre-opening expenses
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Operating income
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Interest income, net
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( |
)
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( |
)
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( |
)
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( |
)
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Income before income taxes
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Income tax expense
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Net income
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$
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$
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$
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$
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Earnings per common share:
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||||||||||||||||
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Basic
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$
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$
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$
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$
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Diluted
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$
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$
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$
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$
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Weighted average common shares outstanding:
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Basic
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Diluted
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See accompanying notes to the condensed consolidated financial statements.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
(In thousands, except per share amounts)
(Unaudited)
|
November 1,
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February 1,
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November 2,
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||||||||||
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Assets
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2025
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2025
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2024
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|||||||||
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Current assets:
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||||||||||||
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Cash and cash equivalents
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$
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$
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$
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||||||
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Short-term investments
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Inventories
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Accounts receivable
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Prepaid expenses and other current assets
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Total current assets
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Property and equipment, net of accumulated depreciation of
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| $ |
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Operating lease right-of-use assets
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Goodwill
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|||||||||
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Trade name
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Long-term investments
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Other assets
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Total assets
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$
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$
|
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$
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|
||||||
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Liabilities and Stockholders’ Equity
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||||||||||||
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Current liabilities:
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||||||||||||
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Current portion of long-term debt
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$
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$
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$
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||||||
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Accounts payable
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Income taxes payable
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Current portion of operating lease liabilities
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Accrued expenses and other current liabilities
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Total current liabilities
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Long-term debt
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Deferred income taxes
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Long-term portion of operating lease liabilities
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Total liabilities
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Stockholders’ equity:
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| Preferred stock - |
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| Common stock - |
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Additional paid-in capital
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Retained earnings
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| Treasury - common stock, at cost; |
||||||||||||
| respectively |
( |
) |
( |
) |
( |
) |
||||||
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Total stockholders’ equity
|
|
|
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|||||||||
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Total liabilities and stockholders’ equity
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$
|
|
$
|
|
$
|
|
||||||
See accompanying notes to the condensed consolidated financial statements.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
(In thousands)
(Unaudited)
|
Thirteen weeks ended November 1, 2025 and November 2, 2024
|
||||||||||||||||||||||||||||
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Common stock
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Treasury stock
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Additional
paid-in
capital
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Retained
earnings
|
Total
stockholders’
equity
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||||||||||||||||||||||||
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Shares
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Amount
|
Shares
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Amount
|
|||||||||||||||||||||||||
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Balance as of August 2, 2025
|
|
$
|
|
( |
)
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$
|
( |
)
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$
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$
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$
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||||||||||||||
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Stock-based compensation expense
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-
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-
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Proceeds from stock options exercised
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Vesting of restricted stock
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Common shares withheld for taxes
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( |
)
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( |
)
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( |
)
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Shares repurchased
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( |
)
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( |
)
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( |
)
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||||||||||||||||||
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Net income
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-
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-
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Balance as of November 1, 2025
|
|
$
|
|
( |
)
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$
|
( |
)
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$
|
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$
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$
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||||||||||||||
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||||||||||||||||||||||||||||
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Balance as of August 3, 2024
|
|
$
|
|
( |
)
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$
|
( |
)
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$
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$
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$
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||||||||||||||
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Stock-based compensation expense
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-
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-
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|||||||||||||||||||||
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Proceeds from stock options exercised
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Vesting of restricted stock
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|||||||||||||||||||||
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Common shares withheld for taxes
|
( |
)
|
|
|
|
( |
)
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|
( |
)
|
||||||||||||||||||
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Shares repurchased
|
|
|
( |
)
|
( |
)
|
|
|
( |
)
|
||||||||||||||||||
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Net income
|
-
|
|
-
|
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|
|
|
|||||||||||||||||||||
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Balance as of November 2, 2024
|
|
$
|
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
|
Thirty-nine weeks ended November 1, 2025 and November 2, 2024
|
||||||||||||||||||||||||||||
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Common stock
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Treasury stock
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Additional
paid-in
capital
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Retained
earnings
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Total
stockholders’
equity
|
||||||||||||||||||||||||
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Shares
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Amount
|
Shares
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Amount
|
|||||||||||||||||||||||||
|
Balance as of February 1, 2025
|
|
$
|
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
|
Stock-based compensation expense
|
-
|
|
-
|
|
|
|
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|||||||||||||||||||||
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Proceeds from stock options exercised
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|||||||||||||||||||||
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Vesting of restricted stock
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|||||||||||||||||||||
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Common shares withheld for taxes
|
( |
)
|
|
|
|
( |
)
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|
( |
)
|
||||||||||||||||||
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Shares repurchased
|
|
|
( |
)
|
( |
)
|
|
|
( |
)
|
||||||||||||||||||
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Net income
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
|
Balance as of November 1, 2025
|
|
$
|
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
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|
||||||||||||||||||||||||||||
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Balance as of February 3, 2024
|
|
$
|
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
|
Stock-based compensation expense
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
|
Proceeds from stock options exercised
|
|
|
|
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|||||||||||||||||||||
|
Vesting of restricted stock
|
|
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|
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|
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|
|||||||||||||||||||||
|
Common shares withheld for taxes
|
( |
)
|
|
|
|
( |
)
|
|
( |
)
|
||||||||||||||||||
|
Shares repurchased
|
|
|
( |
)
|
( |
)
|
|
|
( |
)
|
||||||||||||||||||
|
Net income
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
|
Balance as of November 2, 2024
|
|
$
|
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
(In thousands)
(Unaudited)
|
Thirty-nine weeks ended
|
||||||||
|
November 1,
|
November 2,
|
|||||||
|
2025
|
2024
|
|||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net income
|
$
|
|
$
|
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization of property and equipment
|
|
|
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Amortization of debt issuance costs
|
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|
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Gain on sale of assets
|
( |
)
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( |
)
|
||||
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Deferred income tax provision
|
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|
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Stock-based compensation expense
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Other
|
( |
)
|
( |
)
|
||||
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Changes in operating assets and liabilities:
|
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Inventories
|
( |
)
|
( |
)
|
||||
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Accounts receivable
|
( |
)
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( |
)
|
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Prepaid expenses and other assets
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( |
)
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( |
)
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Accounts payable
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Income taxes payable
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( |
)
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( |
)
|
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Accrued expenses and other liabilities
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Net cash provided by operating activities
|
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Cash Flows from Investing Activities:
|
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Capital expenditures
|
( |
)
|
( |
)
|
||||
|
Proceeds from sale of property and equipment
|
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|
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Purchases of investments
|
( |
)
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( |
)
|
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Maturities of investments
|
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Net cash used in investing activities
|
( |
)
|
( |
)
|
||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Repayments on finance leases
|
( |
)
|
( |
)
|
||||
|
Proceeds from stock option exercises
|
|
|
||||||
|
Common shares withheld for taxes
|
( |
)
|
( |
)
|
||||
|
Payment for shares repurchased
|
( |
)
|
( |
)
|
||||
|
Net cash used in financing activities
|
( |
)
|
( |
)
|
||||
|
Net increase (decrease) in cash and cash equivalents
|
( |
)
|
( |
)
|
||||
|
Cash and cash equivalents, beginning of the period
|
|
|
||||||
|
Cash and cash equivalents, end of the period
|
$
|
|
$
|
|
||||
|
Supplemental disclosure of cash flow information:
|
||||||||
|
Cash paid during the period for:
|
||||||||
|
Interest
|
$
|
|
$
|
|
||||
|
Income taxes
|
$
|
|
$
|
|
||||
|
Non-cash investing activities:
|
||||||||
|
Accrued purchases of property and equipment
|
$
|
|
$
|
|
||||
See accompanying notes to the condensed consolidated financial statements.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
| (1) |
Basis of Presentation and Summary of Significant Accounting Policies
|
| (a) |
Description of Business
|
Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referred to as the “Company” or “Ollie’s”) is a leading off-price retailer of brand name household products. The Company
principally buys and sells overproduced, overstocked, and closeout merchandise from manufacturers, wholesalers, and other retailers. In addition, the Company augments its name-brand closeout deals with directly sourced private label products
featuring names exclusive to Ollie’s in order to provide consistently value-priced goods in select key merchandise categories.
Since its first store opened in 1982, the Company has grown to 645 retail stores in 34 states as of November 1, 2025. Ollie’s retail stores are operated and located in the following states: Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia, and Wisconsin.
| (b) | Fiscal Year |
Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearer to January 31st of the following calendar year. References to the thirteen weeks ended November 1, 2025 and
November 2, 2024 refer to the thirteen weeks from August 3, 2025 to November 1, 2025 and from August 4, 2024 to November 2, 2024, respectively. References to the year-to-date periods ending November 1, 2025 and November 2, 2024 refer to the
thirty-nine weeks from February 2, 2025 to November 1, 2025 and from February 4, 2024 to November 2, 2024, respectively. References to “2024” refer to the fiscal year ended February 1, 2025 and references to “2025” refer to the fiscal year ending
January 31, 2026. Both periods consist of 52 weeks.
| (c) | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information
and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are
necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of November 1, 2025 and November 2, 2024, and the condensed consolidated
statements of income and stockholders’ equity for the thirteen weeks and thirty-nine weeks ended November 1, 2025 and November 2, 2024, and the condensed consolidated statements of cash flows for the thirty-nine weeks ended November 1, 2025 and
November 2, 2024 have been prepared by the Company and are unaudited. There is some seasonality to the Company’s business, and results of operations for the interim periods presented are not necessarily indicative of operating results for 2025 or
any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation.
The Company’s balance sheet as of February 1, 2025, presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on
March 26, 2025, as amended on April 11, 2025 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2024 and footnotes thereto included in
the Annual Report.
For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
| (d) | Use of Estimates |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
| (e) | Fair Value Disclosures |
Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the
measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows:
| • |
Level 1 inputs are quoted prices available for identical assets and liabilities in active markets.
|
| • |
Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by
observable market data.
|
| • |
Level 3 inputs are unobservable, developed using the Company’s estimates and assumptions, which reflect those that market participants would use.
|
The Company’s financial instruments consist of cash and cash equivalents, investment securities, accounts receivable, accounts payable and the Company’s credit facilities. The carrying amounts of
cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair value because of their short-term nature. The carrying amount of the Company’s credit facilities approximates its fair value because the
interest rates are adjusted regularly based on current market conditions. Under the fair value hierarchy, the fair market values of cash equivalents and the investments in treasury bonds are Level 1 while the investments in municipal and corporate
bonds are Level 2. Since quoted prices in active markets for identical assets are not available, these prices are determined by a third-party pricing service using observable market information such as quotes from less active markets and quoted
prices of similar securities.
As of November 1, 2025, February 1, 2025, and November 2, 2024, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following:
|
As of November 1, 2025
|
||||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Market
Value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Short-term:
|
||||||||||||||||
|
Treasury Bonds
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
|
Corporate Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Total
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
|
Long-term:
|
||||||||||||||||
|
Treasury Bonds
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
|
Municipal Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Corporate Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Total
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
|
As of February 1, 2025
|
||||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Market
Value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Short-term:
|
||||||||||||||||
|
Treasury Bonds
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
|
Municipal Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Corporate Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Total
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
|
As of November 2, 2024
|
||||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Market
Value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Short-term:
|
||||||||||||||||
|
Treasury Bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Municipal Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Corporate Bonds
|
|
|
( |
)
|
|
|||||||||||
|
Total
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
Short-term investment securities as of November 1, 2025, February 1, 2025, and November 2, 2024 all mature in one year or less. Long-term investment securities as of November 1, 2025 all mature
after one year.
| (f) | Recently Issued Accounting Pronouncements |
In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which modifies the disclosure requirements for income taxes. This ASU requires disclosure of tabular
statutory to effective rate reconciliation in both percentages and dollars, additional disaggregated rate reconciliation categories and disaggregation of both income taxes paid and income tax expense by jurisdiction. This guidance is effective for
annual periods beginning after December 15, 2024. The Company expects this ASU to only impact its disclosures with no impact to its results of operations, cash flows, and financial condition.
In November 2024, the FASB issued ASU 2024-03 “Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”
(“ASU 2024-03”) which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization, and depletion, within relevant income statement captions. This guidance is
effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact
of ASU 2024-03 to its consolidated financial statements.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
In September 2025, the FASB issued ASU 2025-06 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” This ASU
modernizes the capitalization criteria for internal-use software by eliminating references to project stages and clarifying the threshold applied to begin capitalizing costs. This guidance is effective for fiscal years beginning after December 15,
2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of ASU 2025-06 to its consolidated financial
statements.
| (2) |
Net Sales
|
Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. The Company provides an allowance for estimated retail merchandise returns based on prior experience.
Revenue Recognition
Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollie’s Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards issued upon the achievement of specified point levels are subject to expiration. Unless temporarily extended, the maximum redemption period is 45 days. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of discount awards redeemed that were included in the deferred revenue balance at the beginning of the period as well as discount awards issued during the current period. The following table is a reconciliation of the liability related to this program:
|
Thirty-nine weeks ended
|
||||||||
|
November 1,
2025
|
November 2,
2024
|
|||||||
|
(in thousands)
|
||||||||
|
Beginning balance
|
$
|
|
$
|
|
||||
|
Revenue deferred
|
|
|
||||||
|
Revenue recognized
|
( |
)
|
( |
)
|
||||
|
Ending balance
|
$
|
|
$
|
|
||||
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. Gift cards do not expire. The rate applied to redemptions is based upon a historical breakage rate. Gift cards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of gift cards that were included in the liability at the beginning of the period as well as gift cards that were issued during the period. The following table is a reconciliation of the gift card liability:
|
Thirty-nine weeks ended
|
||||||||
|
November 1,
2025
|
November 2,
2024
|
|||||||
|
(in thousands)
|
||||||||
|
Beginning balance
|
$
|
|
$
|
|
||||
|
Gift card issuances
|
|
|
||||||
|
Gift card redemption and breakage
|
( |
)
|
( |
)
|
||||
|
Ending balance
|
$
|
|
$
|
|
||||
The Company offers a co-branded credit card that can be used by customers for purchases at Ollie’s and everywhere else the co-branded credit card is accepted, and credit is
extended to such customers by a third-party financial institution on a non-recourse basis to the Company. The co-branded credit card includes a performance obligation for the Company which includes marketing and promoting the program on behalf of
the bank and the operation of the Company’s loyalty rewards program. Loyalty members earn points through purchases made using the card.
The third party reimburses the Company for certain credit card program costs such as advertising and loyalty points, which help promote the credit card program. The Company
recognizes revenue when collectability is reasonably assured, under the assumption the amounts are not constrained and it is probable that a significant revenue reversal will not occur in future periods, which is generally the time at which the
actual usage of the credit cards or specified transaction occurs.
Under the program, the Company receives a percentage of the sales generated by Ollie’s co-branded credit card, in exchange for primary marketing functions. As a result, all
amounts associated with the program are recognized within net sales on the consolidated statements of income. Additionally, the Company is entitled to certain bonuses based on performance of the program.
| (3) |
Earnings per Common Share
|
Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income
by the weighted average number of common shares outstanding after giving effect to the potential dilution, if applicable, from the assumed exercise of stock options into shares of common stock as if those stock options were exercised and the
assumed lapse of restrictions on restricted stock units.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
The following table summarizes those effects for the diluted earnings per common share calculation:
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
|
November 1,
2025
|
November 2,
2024
|
November 1,
2025
|
November 2,
2024
|
|||||||||||||
|
(in thousands, except per share amounts)
|
(in thousands, except per share amounts)
|
|||||||||||||||
|
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Weighted average number of common shares outstanding – Basic
|
|
|
|
|
||||||||||||
|
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units
|
|
|
|
|
||||||||||||
|
Weighted average number of common shares outstanding - Diluted
|
|
|
|
|
||||||||||||
|
Earnings per common share – Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Earnings per common share - Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
The effect of the weighted average assumed exercise of stock options outstanding totaling 105,571 and 150,597 for the thirteen weeks ended November 1, 2025 and November 2, 2024, respectively, and 94,591 and 322,857 for the thirty-nine weeks ended November 1, 2025 and November 2, 2024, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive.
The effect of weighted average non-vested restricted stock units outstanding totaling 1,216 and 4,023 for the thirteen weeks ended November 1, 2025 and November 2, 2024, respectively, and 11,987 and 1,505 for the thirty-nine weeks ended November 1, 2025 and November 2, 2024, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive.
| (4) |
Leases
|
The Company generally leases its stores, offices, and distribution facilities under operating leases that expire at various dates through 2038. These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals based on a percentage of annual sales. A majority of the Company’s leases also require a payment for all or a portion of common-area maintenance, insurance, real estate taxes, water and sewer costs, and repairs, on a fixed or variable payment basis. Most leases contain options to renew for three to five successive five-year periods. Many of our lease agreements provide options to extend the lease term beyond the initial non-cancelable period. At lease commencement, we generally include only the initial term in the lease liability and right-of-use asset, as we have determined that renewal options are not reasonably certain to be exercised. Renewal decisions are generally at our sole discretion. Upon renewal of an expiring lease, we reassess the terms and include in the lease term any extension periods that are reasonably certain to be exercised. For leases acquired through bankruptcy proceedings, we typically include option periods in the lease term, as the economic penalty associated with the acquisition cost makes renewal reasonably certain. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The Company determines if an arrangement contains a lease at the inception of a contract. All of the Company’s leases are classified as operating leases and the associated assets and liabilities
are presented as separate captions in the consolidated balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make
lease payments arising from the lease.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
The following table summarizes the maturity of the Company’s operating lease liabilities by fiscal year as of November 1, 2025:
|
November 1,
2025
|
||||
|
(in thousands)
|
||||
|
Remainder of 2025
|
$
|
|
||
|
2026
|
|
|||
|
2027
|
|
|||
|
2028
|
|
|||
|
2029
|
|
|||
|
Thereafter
|
|
|||
|
Total undiscounted lease payments (1)
|
|
|||
|
Less: Imputed interest
|
( |
)
|
||
|
Total lease obligations
|
|
|||
|
Less: Current obligations under leases
|
( |
)
|
||
|
Long-term lease obligations
|
$
|
|
||
| (1) | |
The following table summarizes other information related to the Company’s operating leases as of and for the respective periods:
| Thirty-nine weeks ended | ||||||||
| November 1, 2025 | November 2, 2024 | |||||||
| (dollars in thousands) | ||||||||
| Cash paid for operating leases | $ | | $ | | ||||
| Operating lease cost | | | ||||||
| Variable lease cost | | |||||||
| Non-cash right-of-use assets obtained in exchange for lease obligations | | | ||||||
| Weighted-average remaining lease term | | | ||||||
| Weighted-average discount rate | | % | | % | ||||
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
| (5) |
Commitments and Contingencies
|
Legal Matters
From time to time, the Company may be involved in claims and legal actions that arise in the ordinary course of its business. The Company cannot predict the outcome of any claim or legal action to which it is a
party. However, the Company does not believe that an unfavorable decision of any of the current claims or legal actions against it, individually or in the aggregate, will have a material adverse effect on its financial position, results of
operations, liquidity, or capital resources.
| (6) |
Accrued Expenses and Other Current Liabilities
|
Accrued expenses and other current liabilities consists of the following:
|
November 1,
2025
|
February 1,
2025
|
November 2,
2024
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Compensation and benefits
|
$
|
|
$
|
|
$
|
|
||||||
|
Deferred revenue
|
|
|
|
|||||||||
|
Sales and use taxes
|
|
|
|
|||||||||
|
Insurance
|
|
|
|
|||||||||
|
Advertising
|
|
|
|
|||||||||
|
Freight
|
|
|
|
|||||||||
|
Real estate
|
|
|
|
|||||||||
|
Property and equipment
|
|
|
|
|||||||||
|
Other
|
|
|
|
|||||||||
|
$
|
|
$
|
|
$
|
|
|||||||
| (7) |
Debt Obligations and Financing Arrangements
|
Long-term debt consists of finance leases.
The Company’s credit facility (the “Credit Facility”) provides for a five-year $100.0 million revolving credit facility, which includes a $45.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans (the “Revolving Credit Facility”). In addition, the Company may at any time add term loan facilities or additional revolving commitments up to $150.0 million pursuant to terms and conditions set out in the Credit Facility. On January 9, 2024, the Company refinanced its credit facility (the “Credit Facility”), pursuant to which the maturity date for any loans under the revolving credit facility was extended for a period of five years from the effective date of January 9, 2024 and a zero percent (0.0 %) interest rate floor was added to the option for the SOFR Loan Rate (as defined in the Amendment). Loans under the Revolving Credit Facility mature on January 9, 2029 .
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
As a result of the anticipated discontinuation of LIBOR in 2023, on January 24, 2023, the Company amended its Credit Facility to replace the LIBOR-based interest rates included therein with SOFR-based interest rates and to modify the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks. The interest rates for the Credit Facility are calculated as follows: for ABR Loans, the highest of the Prime Rate, the Federal Funds Effective Rate plus 0.50 % and Term SOFR with a term of one-month in effect on such day plus the SOFR Spread Adjustment plus 1.0 %, plus the Applicable Margin, or, for SOFR Loans, the SOFR Loan Rate plus the Applicable Margin plus the SOFR Spread Adjustment. The Applicable Margin will vary from 0.00 % to 0.50 % for an ABR Loan and 1.00 % to 1.50 % for a SOFR Loan, based on availability under the Credit Facility. The SOFR Loan Rate is subject to a 0 % floor.
Under the terms of the Revolving Credit Facility, as of November 1, 2025, the Company could borrow up to 90.0 % of the most recent appraised value (valued at cost, discounted for the current net orderly liquidation value) of its eligible inventory, as defined, up to $100.0 million.
As of November 1, 2025, the Company had no outstanding borrowings under the Revolving Credit Facility, with $88.1 million of borrowing availability, outstanding letters of credit commitments of $11.7 million and $0.2 million of rent reserves. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.125 % to 0.250 % per annum.
The Credit Facility is collateralized by the Company’s assets and equity and contains a financial covenant, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreement. The financial covenant is a consolidated fixed charge coverage ratio test of at least 1.0 to 1.0 applicable during a covenant period, based on reference to availability. The Company was in compliance with all terms of the Credit Facility during the thirty-nine weeks ended November 1, 2025.
The provisions of the Credit Facility restrict all of the net assets of the Company’s consolidated subsidiaries, which constitutes all of the net assets on the Company’s
consolidated balance sheet as of November 1, 2025, from being used to pay any dividends or make other restricted payments to the Company without prior written consent from the financial institutions that are a party to the Credit Facility, subject
to material exceptions including pro forma compliance with the applicable conditions described in the Credit Facility.
| (8) |
Income Taxes
|
The effective income tax rates for the thirteen weeks ended November 1, 2025 and November 2, 2024 were 23.0 % and 26.1 %, respectively. The effective income tax rates for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 were 23.4 % and 24.6 %, respectively. The change in the effective tax rates for the thirteen and thirty-nine weeks ended November 1, 2025 was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, partially offset by the impact of higher non-deductible compensation.
On July 4, 2025, the U.S. federal government enacted the “One Big Beautiful Bill Act” resulting in significant changes to the federal tax code, most notably the permanent
extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions. The Company has evaluated and incorporated the effects of the legislation in its income
tax provision for the thirty-nine weeks ended November 1, 2025. The legislation did not materially impact the Company’s consolidated financial statements.
The Company is subject to tax in the United States. The Company files a consolidated U.S. income tax return for federal income tax purposes. The Company is no longer subject to income tax
examinations by U.S. federal, state and local tax authorities for tax years 2020 and prior.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues arise as a result of a tax audit and are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.
| (9) |
Equity Incentive Plans
|
In connection with its initial public offering, the Company adopted the 2015 equity incentive plan (the “2015 Plan”) pursuant to which the Company’s Board of Directors may grant stock options, restricted shares, or other awards to employees, directors, and consultants. The 2015 Plan allowed for the issuance of up to 5,250,000 shares. Awards under the 2015 Plan were made pursuant to agreements and are subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. No additional equity grants will be made under the 2015 Plan, although equity grants made under the 2015 Plan will continue to be governed by the 2015 Plan.
As of June 12, 2025, upon stockholder approval of the same at the Company’s annual meeting, the Company adopted a new 2025 Equity Incentive Plan (the “2025 Plan”). Pursuant to the 2025 Plan, the
Company’s Board of Directors may grant stock options, restricted shares, restricted stock units, or other awards to officers, directors, key employees, and professional service providers, pursuant to agreements and subject to vesting and other
restrictions as determined by the Board of Directors.
As of November 1, 2025, there were 907,127 shares available for grant under the 2025 Plan.
Stock Options
The exercise price for stock options is determined at the fair value of the underlying stock on the date of grant. The vesting period for awards granted is generally set at four years 25 10 years from the date of grant, and are not transferable other than upon death.
A summary of the Company’s stock option activity and related information for the thirty-nine weeks ended November 1, 2025 follows:
| Number of options | Weighted average exercise price | Weighted average remaining contractual term (years) | ||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||
| Outstanding at February 1, 2025 | | $ | | |||||||||
| Granted | | | ||||||||||
| Forfeited | ( | ) | | |||||||||
| Exercised | ( | ) | | |||||||||
| Outstanding at November 1, 2025 | | | | |||||||||
| Exercisable at November 1, 2025 | | $ | | | ||||||||
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
The weighted average grant date fair value per option for options granted during the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $53.80 and $39.27 , respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table:
| Thirty-nine weeks ended | ||||||||
| November 1, 2025 | November 2, 2024 | |||||||
| Risk-free interest rate | | % | | % | ||||
| Expected dividend yield | | |||||||
| Expected life (years) | | | ||||||
| Expected volatility | | % | | % | ||||
To estimate the expected life of stock options, the Company uses its historical information to develop reasonable expectation about future exercise patterns and post-vesting employment termination
behavior for its stock option grants. For expected volatility, the Company uses its historical information over the expected life of the option granted to calculate the fair value of option grants. The risk-free interest rate is based on U.S.
Treasury notes with a term approximating the expected life of the option.
Restricted Stock Units
Restricted stock units (“RSUs”) are issued at the closing price of the Company’s common stock on the date of grant. RSUs outstanding generally vest ratably over four years one or four years
A summary of the Company’s RSU activity and related information for the thirty-nine weeks ended November 1, 2025 is as follows:
|
Number
of shares
|
Weighted
average
grant date
fair value
|
|||||||
|
Non-vested balance at February 1, 2025
|
|
$
|
|
|||||
|
Granted
|
|
|
||||||
|
Forfeited
|
( |
)
|
|
|||||
|
Vested
|
( |
)
|
|
|||||
|
Non-vested balance at November 1, 2025
|
|
$
|
|
|||||
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
Stock-Based Compensation Expense
The compensation cost for stock options and RSUs, which have been recorded within selling, general, and administrative expenses on the condensed consolidated statements of income, related to the Company’s equity incentive plans was $3.3 million and $3.6 million for the thirteen weeks ended November 1, 2025 and November 2, 2024, respectively, and $9.8 million and $10.4 million for the thirty-nine weeks ended November 1, 2025 and November 2, 2024, respectively.
As of November 1, 2025, there was $27.1 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.7 years. Compensation costs related to awards are recognized using the straight-line method.
| (10) |
Common Stock
|
Common Stock
The Company’s capital structure consists of a single class of common stock with one vote per share. The Company has authorized 500,000,000 shares at $0.001 par value per share. Additionally, the Company has authorized 50,000,000 shares of preferred stock at $0.001 par value per share; to date, however, no preferred shares have been issued. Treasury stock, which consists of the Company’s common stock, is accounted for using the cost method.
Share Repurchase Program
Between December 15, 2020, and November 30, 2023, the Company’s Board of Directors approved and authorized the repurchase of up to $400.0 million of shares of the Company’s common stock through three separate approvals, effective through March 31, 2026. On March 19, 2025, the Company’s Board of Directors approved a new share repurchase authorization of an additional $300.0 million of the Company’s outstanding common stock, effective through March 31, 2029.
The shares to be repurchased may be purchased from time to time in open market conditions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other
derivative transactions, issuer self-tender offers, or any combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of the Company’s shares, general
market, economic and business conditions, and other corporate considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which could allow the Company to purchase its
shares during periods when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. Repurchases are expected to be funded from cash on hand or through the utilization of the
Company’s Revolving Credit Facility. The repurchase authorization does not require the purchase of a specific number of shares and is subject to suspension or termination by the Company’s Board of Directors at any time.
During the thirty-nine weeks ended November 1, 2025, the Company repurchased 346,032 shares of its common stock for $40.2 million, inclusive of transaction costs, pursuant to its share repurchase program. These expenditures were funded by cash on hand. As of November 1, 2025, the Company had $292.5 million remaining under its share repurchase authorization. There can be no assurance that any additional repurchases will be completed, or as to the timing or amount of any repurchases. The share repurchase program may be discontinued at any time.
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
| (11) |
Segment Reporting and Entity-Wide Information
|
For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment and one reportable segment. The Company’s chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM regularly reviews operations and financial performance at a consolidated level, for purposes of assessing performance and allocating resources.
The CODM uses net income to allocate resources for the single segment to make decisions regarding annual budget, new store openings, landlord and vendor negotiations, marketing decisions, pursuing
new business ventures, and driving the Company’s values. The CODM reviews asset information on a consolidated basis.
The following table summarizes the percentage of net sales by each product group for each period presented:
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||||||||||||||||||
|
November 1,
2025
|
November 2,
2024
|
November 1,
2025
|
November 2,
2024
|
|||||||||||||||||||||||||||||
|
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||||||||||||
|
Consumables (1)
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||||
|
Home (1)
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
|
Seasonal
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
|
Other
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
||||||||||||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||||
| (1) | |
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
November 1, 2025 and November 2, 2024
(Unaudited)
Our single segment net sales, net income, and significant expenses are as follows for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024:
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
|
November 1,
2025
|
November 2,
2024
|
November 1,
2025
|
November 2,
2024
|
|||||||||||||
|
Net sales
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
Cost of sales
|
|
|
|
|
||||||||||||
|
Selling, general, and administrative expenses other
|
|
|
|
|
||||||||||||
|
Occupancy
|
|
|
|
|
||||||||||||
|
Advertising expenses(1)
|
|
|
|
|
||||||||||||
|
Depreciation and amortization expenses(2)
|
|
|
|
|
||||||||||||
|
Stock-based compensation expense
|
|
|
|
|
||||||||||||
|
Pre-opening expenses
|
|
|
|
|
||||||||||||
|
Interest income, net
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||
|
Income tax expense
|
|
|
|
|
||||||||||||
|
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
| (1) | |
| (2) | |
| ITEM 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
The following discussion and analysis of the financial condition and results of our operations should be read together with the financial
statements and related notes of Ollie’s Bargain Outlet Holdings, Inc. included in Item 1 of this Quarterly Report on Form 10-Q and with our audited financial statements and the related notes included in our Annual Report on Form 10-K for
the fiscal year ended February 1, 2025, filed on March 26, 2025, as amended by Amendment No. 1 to the Annual Report on Form 10-K for the fiscal year ended February 1, 2025, filed on April 11, 2025 (as amended, the “Annual Report”) with the Securities and Exchange Commission, or SEC. As used in this Quarterly Report on Form 10-Q, except where the context otherwise requires or where otherwise
indicated, the terms “Ollie’s,” the “Company,” “we,” “our,” and “us” refer to Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries.
We operate on a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday
nearer to January 31st of the following calendar year. References to “2025” refer to the 52-week period of February 2, 2025 to January 31, 2026. References to “2024”
refer to the 52-week period of February 4, 2024 to February 1, 2025. References to the “third quarter of fiscal 2025” and the “third quarter of fiscal 2024” refer to the thirteen weeks of August 3, 2025 to November 1, 2025 and August 4, 2024 to
November 2, 2024, respectively. Year-to-date periods ended November 1, 2025 and November 2, 2024 refer to the thirty-nine weeks of February 2, 2025 to November 1, 2025 and February 4, 2024 to November 2, 2024, respectively. Historical results are
not necessarily indicative of the results to be expected for any future period and results for any interim period may not necessarily be indicative of the results that may be expected for a full year.
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects,” and similar references to future periods, prospects, financial
performance, and industry outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, capital market conditions, the economy, and other future conditions. Because forward-looking statements
relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the
forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market, and
regulatory conditions, including, but not limited to, supply chain challenges, legislation, national trade policy, and the following: our failure to adequately procure and manage our inventory, anticipate consumer demand, or achieve favorable
product margins; changes in consumer confidence and spending; risks associated with our status as a “brick and mortar” only retailer; risks associated with intense competition; our failure to open new profitable stores, or successfully enter new
markets, on a timely basis or at all; fluctuations in comparable store sales and results of operations, including on a quarterly basis; factors such as inflation, cost increases, and energy prices; the risks associated with doing business with
international manufacturers and suppliers including, but not limited to, potential increases or changes in tariffs on imported goods; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to
properly hire and to retain key personnel and other qualified personnel; changes in market levels of wages; risks associated with cybersecurity events, and the timely and effective deployment, protection, and defense of computer networks and
other electronic systems, including e-mail; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop, open and operate, or the loss of, disruption or interruption in the operations of, any of our
centralized distribution centers; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for adverse outcomes; our inability to successfully
develop or implement our marketing, advertising, and promotional efforts; the seasonal nature of our business; risks associated with natural disasters, whether or not caused by climate change; outbreak of viruses, global health epidemics,
pandemics, or widespread illness; changes in government regulations, procedures, and requirements; and our ability to service indebtedness and to comply with our financial covenants together with each of the other factors set forth under “Item 1A
– Risk Factors” contained herein and in our filings with the SEC, including our Annual Report. Any forward-looking statement made by us in this Quarterly Report on Form 10-Q speaks only as of the date on which such statement is made. Factors or
events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of
new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.
Overview
Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good Stuff Cheap®. We do this through a flexible buying model
that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at prices up to 70% below traditional retailers.
Our Growth Strategy
Since the founding of Ollie’s in 1982, our principal growth strategy has been the opening of new stores. Historically, we have expanded our store base by opening new stores organically.
More recently, we also have opportunistically expanded our store base through acquiring former store locations of distressed or bankrupt retailers through the bankruptcy auction or similar process. Our new store growth strategy continuously
evaluates the best opportunities in the marketplace and combines organic new store openings with the acquisition of store locations through alternative means. We follow a contiguous unit growth strategy that combines backfilling existing
markets and states with entering new markets and states in a contiguous manner. As of November 1, 2025, we operated 645 retail stores in 34 states.
The size and configuration of each of our stores is different and we do not pursue a singular store prototype. Our average store size across our existing base of stores is slightly above 32,000
square feet and we operate stores ranging from 18,000 to 50,000 square feet in size. For new stores, we target a store size of approximately 30,000 square feet, an upfront cash investment of approximately $1 million, net sales of approximately $4
million, and a four-wall profit margin in the mid-teens percentage rate. The upfront cash investment target of approximately $1 million includes store fixtures and equipment, store-level and distribution center inventory (net of payables), and
pre-opening expenses. For new stores where the leases were acquired through the bankruptcy process, we incur additional pre-opening costs in the form of dark rent and buildout costs.
Our stores are supported by four distribution centers, one each in York, PA, Commerce, GA, Lancaster, TX, and Princeton, IL. We completed the construction of our Princeton, IL distribution
center in the second quarter of 2024 and began shipping product in July 2024. With the addition of our fourth distribution center, we believe our distribution capabilities support up to approximately 750 stores.
We have invested in our associates, infrastructure, distribution network, and information systems to allow us to continue to rapidly grow our store footprint, including:
| • |
growing our merchant buying team to increase our access to brand name/closeout merchandise;
|
| • |
adding members to our senior management team;
|
| • |
expanding the capacity of our distribution centers to their current 3.0 million square feet; and
|
| • |
investing in information technology, accounting, and warehouse management systems.
|
Our business model has produced consistent and predictable store growth over the past several years, during both strong and weaker economic cycles. We plan to continue to enhance our competitive
positioning and drive growth in sales and profitability by executing on the following strategies:
| • |
growing our store base;
|
| • |
increasing our offerings of great bargains; and
|
| • |
leveraging and expanding Ollie’s Army.
|
While we are focused on increasing comparable store sales and managing our expenses, our revenue and profitability growth will primarily come from opening new stores. The core elements of our
business model are procuring great deals, offering extreme values to our customers, and creating consistent, predictable store growth and margins. In addition, our new stores generally open strong, immediately contributing to the growth in net
sales and profitability of our business. We plan to achieve continued net sales growth, including comparable stores sales, by adding stores to our store base and by continuing to provide quality merchandise at a value for our customers as we
scale and gain more access to purchase directly from major manufacturers. We also plan to leverage and expand our Ollie’s Army database marketing strategies. In addition, we plan to continue to manage our selling, general, and administrative
expenses (“SG&A”) by continuing to make process improvements and by maintaining our standard policy of leveraging our fixed costs.
Our ability to grow and our results of operations may be impacted by additional factors and uncertainties, such as consumer spending habits, which are subject to macroeconomic conditions and
changes in discretionary income. Our customers’ discretionary income is primarily impacted by gas prices, wages, rising interest rates, inflation, and consumer trends and preferences, which fluctuate depending on the environment. The potential
consolidation of our competitors or other changes in our competitive landscape could also impact our results of operations or our ability to grow, even though we compete with a broad range of retailers.
Our key competitive advantage is our flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. As such, we strive
to build direct buying relationships with many major manufacturers, wholesalers, distributors, brokers, and retailers for our brand name closeout products and unbranded goods. We also augment our product mix with private label brands. As we
continue to grow, we believe our increased scale will provide us with even greater access to brand name closeout products as major manufacturers seek a single buyer to acquire an entire deal.
How We Assess the Performance of Our Business and Key Line Items
We consider a variety of financial and operating measures in assessing the performance of our business. The key measures we use are number of new stores, net sales, comparable store sales, gross
profit and gross margin, SG&A, pre-opening expenses, operating income, EBITDA and Adjusted EBITDA.
Number of New Stores
The number of new stores reflects the number of stores opened during a particular reporting period. Before we open new stores, we incur pre-opening expenses described below under “Pre-Opening
Expenses” and we make an initial investment in inventory. We also make initial capital investments in fixtures and equipment, and in some cases store buildout, which we amortize over time.
We expect new store growth to be the primary driver of our sales growth. Our initial lease terms are approximately seven years with options to renew for three to five successive five-year
periods. Our portable and predictable real estate model focuses on backfilling existing markets and entering new markets in contiguous states. Our new stores often open with higher sales levels as a
result of greater advertising and promotional spend in connection with grand opening events but decline shortly thereafter to our new store model levels.
Net Sales
Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of the merchandise. Also included in net sales is revenue allocated to certain redeemed
discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. Net sales consist of sales from comparable stores and non-comparable stores, described below under “Comparable
Store Sales.” Growth of our net sales is primarily driven by expansion of our store base in existing and new markets. As we continue to grow, we believe we will have greater access to brand name and closeout merchandise and an increased deal
selection, resulting in more potential offerings for our customers. Net sales are impacted by product mix, merchandise mix and availability, as well as promotional activities and the spending habits of our customers. Our broad selection of
offerings across diverse product categories supports growth in net sales by attracting new customers, which results in higher spending levels and frequency of shopping visits from our customers, including Ollie’s Army members.
The spending habits of our customers are subject to macroeconomic conditions and changes in discretionary income. Our customers’ discretionary income is primarily impacted by gas prices,
wages, inflation, and consumer trends and preferences, which fluctuate depending on the environment. However, because we offer a broad selection of merchandise at extreme values, we believe we are less impacted than other retailers by economic
cycles that correspond with declines in general consumer spending habits. We believe we also benefit from periods of increased consumer spending.
Comparable Store Sales
Comparable store sales measure performance of a store during the current reporting period against the performance of the same store in the corresponding period of the previous year. Comparable
store sales consist of net sales from our stores beginning on the first day of the sixteenth full fiscal month following the store’s opening, which is when we believe comparability is achieved. Comparable store sales are impacted by the same
factors that impact net sales.
We define comparable stores to be stores that:
| • |
have been remodeled while remaining open;
|
| • |
are closed for five or fewer days in any fiscal month;
|
| • |
are closed temporarily and relocated within their respective trade areas; and
|
| • |
have expanded, but are not significantly different in size, within their current locations.
|
Non-comparable store sales consist of new store sales and sales for stores not open for a full 15 months. Stores which are closed temporarily, but for more than five days in any fiscal month,
are included in non-comparable store sales beginning in the fiscal month in which the temporary closure begins until the first full month of operation once the store re-opens, at which time they are included in comparable store sales.
Opening new stores is the primary component of our growth strategy and as we continue to execute on our growth strategy, we expect a significant portion of our sales growth will be attributable
to non-comparable store sales. Accordingly, comparable store sales are only one measure we use to assess the success of our growth strategy.
Gross Profit and Gross Margin
Gross profit is equal to our net sales less our cost of sales. Cost of sales includes merchandise costs, inventory markdowns, shrinkage and transportation, distribution and warehousing costs,
including depreciation. Gross margin is gross profit as a percentage of our net sales. Gross margin is a measure used by management to indicate whether we are selling merchandise at an appropriate gross profit.
In addition, our gross margin is impacted by product mix, as some products generally provide higher gross margins, by our merchandise mix and availability, and by our merchandise cost, which can
vary.
Our gross profit is variable in nature and generally follows changes in net sales. We regularly analyze the components of gross profit, as well as gross margin. Specifically, our product margin
and merchandise mix is reviewed by our merchant team and senior management, ensuring strict adherence to internal margin goals. Our disciplined buying approach has produced consistent gross margins and we believe helps to mitigate adverse
impacts on gross profit and results of operation.
The components of our cost of sales may not be comparable to the components of cost of sales or similar measures of our competitors and other retailers. As a result, our gross profit and gross
margin may not be comparable to similar data made available by our competitors and other retailers.
Selling, General, and Administrative Expenses
SG&A expenses are comprised of payroll and benefits for store, field support, and support center associates. SG&A also includes marketing and advertising expense, occupancy costs for
stores and the store support center, insurance, corporate infrastructure, and other general expenses. The components of our SG&A remain relatively consistent per store and for each new store opening. The components of our SG&A may not be
comparable to the components of similar measures of other retailers. Consolidated SG&A generally increases as we grow our store base and as our net sales increase. A significant portion of our expenses are primarily fixed in nature, and we
expect to continue to maintain strict discipline while carefully monitoring SG&A as a percentage of net sales. We expect that our SG&A will continue to increase in future periods with future growth.
The components of our SG&A may not be comparable to the components of SG&A or similar measures of our competitors and other retailers. As a result, our SG&A may not be comparable to
similar data made available by our competitors and other retailers.
Depreciation and Amortization Expenses
Property and equipment are stated at original cost less accumulated depreciation and amortization. Depreciation and amortization expenses are calculated over the estimated useful lives of the
related assets, or in the case of leasehold improvements, the lesser of the useful lives or the remaining term of the lease. Expenditures for additions, renewals, and betterments are capitalized; expenditures for maintenance and repairs are
charged to expense as incurred. Depreciation and amortization are computed on the straight-line method for financial reporting purposes. Depreciation as it relates to our distribution centers is included within cost of sales on the condensed
consolidated statements of income.
Pre-Opening Expenses
Pre-opening expenses consist of expenses of opening new stores and distribution centers, as well as store remodel and closing costs. For organic new store openings, pre-opening expenses
include grand opening advertising costs, payroll expenses, travel expenses, employee training costs, rent expenses, and store setup costs. For new stores where the leases were acquired through the bankruptcy or similar process, we incur
additional pre-opening costs in the form of dark rent and buildout costs. For opening distribution centers, pre-opening expenses primarily include inventory transportation costs, employee travel expenses, and occupancy costs. Store remodel
costs primarily consist of payroll expenses, travel expenses, and store setup costs expensed as they are incurred. Store closing costs primarily consist of insurance deductibles, rent, and store payroll.
Operating Income
Operating income is gross profit less SG&A, depreciation and amortization, and pre-opening expenses. Operating income excludes net interest income or expense, and income tax expense or
benefit. We use operating income as an indicator of the productivity of our business and our ability to manage expenses.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are key metrics used by management and our Board to assess our financial performance. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors,
and other interested parties to evaluate companies in our industry. We use Adjusted EBITDA to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our
performance in connection with compensation decisions and to compare our performance against that of other peer companies using similar measures. Management believes it is useful to investors and analysts to evaluate these non-GAAP measures on
the same basis as management uses to evaluate the Company’s operating results. We believe that excluding items from operating income, net income and net income per diluted share that may not be indicative of, or are unrelated to, our core
operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
We define EBITDA as net income before net interest income or expense, depreciation and amortization expenses and income taxes. Adjusted EBITDA represents EBITDA as further adjusted for non-cash
stock-based compensation expense and gains on insurance settlements. EBITDA and Adjusted EBITDA are non-GAAP measures and may not be comparable to similar measures reported by other companies. EBITDA and Adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In the future we may incur expenses or charges such as those added back to calculate Adjusted EBITDA. Our
presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items. For further discussion of EBITDA and Adjusted EBITDA and for reconciliations of net income, the most directly
comparable GAAP measure, to EBITDA and Adjusted EBITDA, see “Results of Operations.”
Factors Affecting the Comparability of our Results of Operations
Our results over the past two years have been affected by the following factors, which must be understood in order to assess the comparability of our period-to-period financial
performance and condition.
Historical Results
Historical results are not necessarily indicative of the results to be expected for any future period.
Store Openings and Closings
We opened 32 stores in the third quarter of fiscal 2025, compared to 24 store openings and three store closings in the third quarter of fiscal 2024. Of the 32 store openings, 23 were
bankruptcy acquired leases.
Year-to-date, as of November 1, 2025, we have opened 86 stores, compared to 37 store openings and three store closings during the same period in fiscal 2024. Of the 86 store openings, 63
were bankruptcy acquired leases.
Seasonality
There is some seasonality to our business, and demand is generally the highest in our fourth fiscal quarter due to the holiday sales season. To prepare for the holiday sales season, we must
order and keep in stock more merchandise than we carry during other times of the year and generally engage in additional marketing efforts. We expect inventory levels, along with accounts payable and accrued expenses, to reach their highest
levels in our third and fourth fiscal quarters in anticipation of increased net sales during the holiday sales season. As a result of this seasonality, and generally because of variation in consumer spending habits, we experience fluctuations in
net sales and working capital requirements during the year. Because we offer a broad selection of merchandise at extreme values, we believe we are less impacted than other retailers by economic cycles which correspond with declines in general
consumer spending habits, and we believe we still benefit from periods of increased consumer spending.
Results of Operations
The following tables summarize key components of our results of operations for the periods indicated, both in dollars and as a percentage of our net sales.
We derived the condensed consolidated statements of income for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 from our unaudited condensed consolidated financial
statements and related notes. Our historical results are not necessarily indicative of the results that may be expected in the future.
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
|
November 1,
2025
|
November 2,
2024
|
November 1,
2025
|
November 2,
2024
|
|||||||||||||
|
( $ in thousands)
|
($ in thousands)
|
|||||||||||||||
|
Condensed consolidated statements of income data:
|
||||||||||||||||
|
Net sales
|
$
|
613,619
|
$
|
517,428
|
$
|
1,869,942
|
$
|
1,604,621
|
||||||||
|
Cost of sales
|
359,965
|
302,969
|
1,107,919
|
961,773
|
||||||||||||
|
Gross profit
|
253,654
|
214,459
|
762,023
|
642,848
|
||||||||||||
|
Selling, general and administrative expenses
|
180,273
|
154,467
|
520,581
|
442,559
|
||||||||||||
|
Depreciation and amortization expenses
|
10,566
|
8,296
|
29,839
|
24,016
|
||||||||||||
|
Pre-opening expenses
|
7,401
|
7,174
|
23,029
|
14,495
|
||||||||||||
|
Operating income
|
55,414
|
44,522
|
188,574
|
161,778
|
||||||||||||
|
Interest income, net
|
(4,524
|
)
|
(4,028
|
)
|
(13,846
|
)
|
(12,257
|
)
|
||||||||
|
Income before income taxes
|
59,938
|
48,550
|
202,420
|
174,035
|
||||||||||||
|
Income tax expense
|
13,766
|
12,666
|
47,378
|
42,827
|
||||||||||||
|
Net income
|
$
|
46,172
|
$
|
35,884
|
$
|
155,042
|
$
|
131,208
|
||||||||
|
Percentage of net sales (1):
|
||||||||||||||||
|
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
|
Cost of sales
|
58.7
|
58.6
|
59.2
|
59.9
|
||||||||||||
|
Gross profit
|
41.3
|
41.4
|
40.8
|
40.1
|
||||||||||||
|
Selling, general and administrative expenses
|
29.4
|
29.9
|
27.8
|
27.6
|
||||||||||||
|
Depreciation and amortization expenses
|
1.7
|
1.6
|
1.6
|
1.5
|
||||||||||||
|
Pre-opening expenses
|
1.2
|
1.4
|
1.2
|
0.9
|
||||||||||||
|
Operating income
|
9.0
|
8.6
|
10.1
|
10.1
|
||||||||||||
|
Interest income, net
|
(0.7
|
)
|
(0.8
|
)
|
(0.7
|
)
|
(0.8
|
)
|
||||||||
|
Income before income taxes
|
9.8
|
9.4
|
10.8
|
10.8
|
||||||||||||
|
Income tax expense
|
2.2
|
2.4
|
2.5
|
2.7
|
||||||||||||
|
Net income
|
7.5
|
%
|
6.9
|
%
|
8.3
|
%
|
8.2
|
%
|
||||||||
|
Select operating data:
|
||||||||||||||||
|
Number of store openings
|
32
|
24
|
86
|
37
|
||||||||||||
|
Number of store closings
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||
|
Number of stores open at end of period
|
645
|
546
|
645
|
546
|
||||||||||||
|
Average net sales per store (2)
|
$
|
976
|
$
|
965
|
$
|
3,118
|
$
|
3,071
|
||||||||
|
Comparable stores sales change
|
3.3
|
%
|
(0.5
|
)%
|
3.7
|
%
|
2.8
|
%
|
||||||||
| (1) |
Components may not add to totals due to rounding.
|
| (2) |
Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for the respective periods presented.
|
The following table provides a reconciliation of our net income to Adjusted EBITDA for the periods presented:
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
|
November 1,
2025
|
November 2,
2024
|
November 1,
2025
|
November 2,
2024
|
|||||||||||||
|
(in thousands)
|
(in thousands)
|
|||||||||||||||
|
Net income
|
$
|
46,172
|
$
|
35,884
|
$
|
155,042
|
$
|
131,208
|
||||||||
|
Interest income, net
|
(4,524
|
)
|
(4,028
|
)
|
(13,846
|
)
|
(12,257
|
)
|
||||||||
|
Depreciation and amortization expenses (1)
|
14,188
|
11,712
|
40,449
|
31,536
|
||||||||||||
|
Income tax expense
|
13,766
|
12,666
|
47,378
|
42,827
|
||||||||||||
|
EBITDA
|
69,602
|
56,234
|
229,023
|
193,314
|
||||||||||||
|
Non-cash stock-based compensation expense
|
3,282
|
3,606
|
9,806
|
10,407
|
||||||||||||
|
Adjusted EBITDA
|
$
|
72,884
|
$
|
59,840
|
$
|
238,829
|
$
|
203,721
|
||||||||
| (1) |
Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our condensed consolidated statements of income.
|
Third quarter of Fiscal 2025 Compared to Third quarter of Fiscal 2024
Net Sales
Net sales increased 18.6% to $613.6 million in the third quarter of fiscal 2025 from $517.4 million in the third quarter of fiscal 2024. The increase in net sales was driven primarily by new
store unit growth and an increase in comparable store sales.
Comparable store sales increased 3.3% in the third quarter of fiscal 2025 compared with a 0.5% decrease in the third quarter of fiscal 2024. The increase in comparable store sales was driven
primarily by an increase in the number of transactions, partially offset by a decrease in the average basket, which was driven by a decline in the average ticket price.
Gross Profit and Gross Margin
Gross profit increased 18.3% to $253.7 million in the third quarter of fiscal 2025 from $214.5 million in the third quarter of fiscal 2024. Gross margin decreased 10 basis points to 41.3%
in the third quarter of fiscal 2025 from 41.4% in the third quarter of fiscal 2024. The decrease in gross margin was primarily driven by higher supply chain costs, including incremental tariff expenses, partially offset by higher merchandise
margins.
Selling, General, and Administrative Expenses
SG&A expenses increased to $180.3 million in the third quarter of fiscal 2025 from $154.5 million in the third quarter of fiscal 2024, an increase of $25.8 million, or 16.7%, primarily
driven by higher selling expenses related to new store growth. As a percentage of net sales, SG&A expenses decreased 50 basis points to 29.4% in the third quarter of fiscal 2025 from 29.9% in the third quarter of fiscal 2024. The decrease
in SG&A expenses as a percentage of net sales was primarily driven by lower professional service expenses, lower stock-based compensation, and leverage from the continued optimization of our marketing spend.
Pre-Opening Expenses
Pre-opening expenses increased 3.2% to $7.4 million in the third quarter of fiscal 2025 from $7.2 million in the third quarter of fiscal 2024. The increase in pre-opening expenses was primarily
driven by new store growth and dark rent of $1.0 million associated with the bankruptcy acquired stores. We opened 32 stores in the third quarter of fiscal 2025 compared to 24 stores opened and 3 stores closed in the third quarter of fiscal
2024. Of the 32 store openings, 23 were bankruptcy acquired leases that carried higher levels of dark rent.
Interest Income, Net
Interest income, net was $4.5 million in the third quarter of fiscal 2025 compared with net interest income of $4.0 million in the third quarter of fiscal 2024. The increase in interest income in
the third quarter of fiscal 2025 is primarily due to higher average cash and cash equivalent and investments balances, partially offset by lower rates.
Income Tax Expense
Income tax expense increased to $13.8 million in the third quarter of fiscal 2025 compared to $12.7 million in the third quarter of fiscal 2024. The effective tax rates for the third quarters of
fiscal 2025 and fiscal 2024 were 23.0% and 26.1%, respectively. The change in the effective tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, partially offset by
the impact of higher non-deductible compensation.
Net Income
As a result of the foregoing, net income increased to $46.2 million in the third quarter of fiscal 2025 from $35.9 million in the third quarter of fiscal 2024, an increase of $10.3 million or
28.7%.
Adjusted EBITDA
Adjusted EBITDA increased to $72.9 million in the third quarter of fiscal 2025 from $59.8 million in the third quarter of fiscal 2024, an increase of $13.0 million, or 21.8%.
Year-to-Date Fiscal 2025 Compared to Year-to-Date Fiscal 2024
Net Sales
Net sales increased 16.6% to $1.870 billion in the thirty-nine weeks ended November 1, 2025 from $1.605 billion in the thirty-nine weeks ended November 2, 2024. The increase in net sales was
driven primarily by new store unit growth and an increase in comparable store sales.
Comparable store sales increased 3.7% in the thirty-nine weeks ended November 1, 2025 compared with a 2.8% increase in the thirty-nine weeks ended November 2, 2024. The increase in comparable
store sales was driven primarily by an increase in the number of transactions, partially offset by a decrease in the average basket, which was driven by a decline in the average ticket price.
Gross Profit and Gross Margin
Gross profit increased 18.6% to $762.0 million in the thirty-nine weeks ended November 1, 2025 from $642.8 million in the thirty-nine weeks ended November 2, 2024. Gross margin increased 70 basis
points to 40.8% in the thirty-nine weeks ended November 1, 2025 from 40.1% in the thirty-nine weeks ended November 2, 2024. The increase in gross margin was primarily due to higher merchandise margins, partially offset by higher supply chain
costs, including incremental tariff expense.
Selling, General, and Administrative Expenses
SG&A expenses increased to $520.6 million in the thirty-nine weeks ended November 1, 2025 from $442.6 million in the thirty-nine weeks ended November 2, 2024, an increase of $78.0
million, or 17.6%, primarily driven by higher selling expenses related to new store growth. As a percentage of net sales, SG&A expenses increased 20 basis points to 27.8% in the thirty-nine weeks ended November 1, 2025 from 27.6% in the
thirty-nine weeks ended November 2, 2024. The increase in SG&A expenses as a percentage of net sales was primarily driven by higher medical and casualty claims, partially offset by the leverage of fixed costs from higher sales.
Pre-Opening Expenses
Pre-opening expenses increased 58.9% to $23.0 million in the thirty-nine weeks ended November 1, 2025 from $14.5 million in the thirty-nine weeks ended November 2, 2024. The increase in
pre-opening expenses was primarily driven by new store growth and dark rent expense of $5.1 million associated with the bankruptcy acquired stores. We opened 86 stores in the thirty-nine weeks ended November 1, 2025 compared to 37 stores opened
and three stores closed in the thirty-nine weeks ended November 2, 2024. Of the 86 store openings, 63 of these were bankruptcy acquired leases that carried higher levels of dark rent.
Interest Income, Net
Interest income, net increased to $13.8 million in the thirty-nine weeks ended November 1, 2025 from $12.3 million in the thirty-nine weeks ended November 2, 2024, primarily due to higher average
cash and cash equivalent and short-term investments balances, partially offset by lower rates.
Income Tax Expense
Income tax expense in the thirty-nine weeks ended November 1, 2025 was $47.4 million compared to income tax expense of $42.8 million in the thirty-nine weeks ended November 2, 2024. The effective
tax rates for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 were 23.4% and 24.6%, respectively. The decrease in the effective tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits
related to stock-based compensation, partially offset by the impact of higher non-deductible compensation.
Net Income
As a result of the foregoing, net income increased to $155.0 million in the thirty-nine weeks ended November 1, 2025 from $131.2 million in the thirty-nine weeks ended November 2, 2024, an
increase of $23.8 million or 18.2%.
Adjusted EBITDA
Adjusted EBITDA increased to $238.8 million in the thirty-nine weeks ended November 1, 2025 from $203.7 million in the thirty-nine weeks ended November 2, 2024, an increase of $35.1 million, or
17.3%.
Liquidity and Capital Resources
Overview
Our primary sources of liquidity are net cash flows provided by operating activities and available borrowings under our $100.0 million Revolving Credit Facility. Our primary cash needs are for
capital expenditures and working capital. As of November 1, 2025, we had $88.1 million available to borrow under our Revolving Credit Facility and $186 million of cash and cash equivalents and short-term investments on hand. For further
information regarding our Revolving Credit Facility, see Note 7 under “Notes to Unaudited Condensed Consolidated Financial Statements.”
Our capital expenditures are primarily related to new store openings, lease acquisitions and related build-out costs, store resets, which consist of improvements to stores as they are needed,
expenditures related to our distribution centers, and infrastructure-related investments, including investments related to upgrading and maintaining our information technology systems. We spent $30.7 million and $31.0 million for capital
expenditures during the third quarters of fiscal 2025 and fiscal 2024, respectively. For the thirty-nine weeks ended November 1, 2025, we spent $83.9 million for capital expenditures compared to $96.2 million for the thirty-nine weeks ended
November 2, 2024. We opened 32 stores during the third quarter of fiscal 2025.
Capital expenditures in 2025 are planned to be approximately $88 million, primarily for the opening of 86 stores, store-level initiatives at our existing stores, as well as general corporate
capital expenditures, including information technology. We have experienced, and may continue to experience, delays in construction and permitting of new stores and other projects.
Our primary working capital requirements are for the purchase of merchandise inventories, payroll, store rent associated with our operating leases, other store operating costs, distribution
costs, and general and administrative costs. Our working capital requirements fluctuate during the year, rising in our third fiscal quarter as we increase quantities of inventory in anticipation of our peak holiday sales season in our fourth
fiscal quarter. Fluctuations in working capital are also driven by the timing of new store openings.
Historically, we have funded our capital expenditures and working capital requirements during the fiscal year with cash flows from operations.
A financial instrument which potentially subjects the Company to a concentration of credit risk is cash. Ollie’s currently maintains its day-to-day operating cash balances with major financial
institutions. The Company’s operating cash balances are in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. From time to time, Ollie’s invests temporary excess cash in overnight investments with expected minimal
volatility, such as money market funds. Although the Company maintains balances which exceed the FDIC insured limit, it has not experienced any losses related to these balances.
We believe our cash and cash equivalents and short-term investments position, net cash provided by operating activities and availability under our Revolving Credit Facility will be adequate to
finance our planned capital expenditures, working capital requirements, debt service and other financing activities over the next 12 months. If cash provided by operating activities and borrowings under our Revolving Credit Facility are not
sufficient or available to meet our capital requirements, we will then be required to obtain additional equity or debt financing in the future. There can be no assurance equity or debt financing will be available to us when needed or, if
available, the terms will be satisfactory to us and not dilutive to our then-current stockholders.
Share Repurchase Program
Between December 15, 2020, and November 30, 2023, our Board of Directors approved and authorized the repurchase of up to $400.0 million of shares of our common stock through three separate
approvals, effective through March 31, 2026. On March 19, 2025, our Board of Directors approved a new share repurchase authorization of an additional $300.0 million of our outstanding common stock, effective through March 31, 2029. The shares
to be repurchased may be purchased from time to time in open market conditions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issuer self-tender offers or any
combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of our shares, general market, economic and business conditions, and other corporate
considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which could allow us to purchase our shares during periods when we otherwise might be prevented from doing
so under insider trading laws or because of self-imposed trading blackout periods. Repurchases are expected to be funded from cash on hand or through the utilization of our Revolving Credit Facility. The repurchase authorization does not
require the purchase of a specific number of shares and is subject to suspension or termination by our Board of Directors at any time.
During the thirty-nine weeks ended November 1, 2025, we repurchased 346,032 shares of our common stock for $40.2 million, inclusive of transaction costs, pursuant to our share repurchase program.
During the thirty-nine weeks ended November 2, 2024, we repurchased 587,633 shares of our common stock for $47.3 million, inclusive of transaction costs, pursuant to our share repurchase program. These expenditures were funded by cash generated
from operations. As of November 1, 2025, we had $292.5 million remaining under our share repurchase authorization. There can be no assurances that any additional repurchases will be completed, or as to the timing or amount of any repurchases.
Summary of Cash Flows
A summary of our cash flows from operating, investing, and financing activities is presented in the following table:
|
Thirty-nine weeks ended
|
||||||||
|
November 1,
2025
|
November 2,
2024
|
|||||||
|
(in thousands)
|
||||||||
|
Net cash provided by operating activities
|
$
|
114,172
|
$
|
79,694
|
||||
|
Net cash used in investing activities
|
(146,114
|
)
|
(183,446
|
)
|
||||
|
Net cash used in financing activities
|
(28,482
|
)
|
(33,825
|
)
|
||||
|
Net increase (decrease) in cash and cash equivalents
|
$
|
(60,424
|
)
|
$
|
(137,577
|
)
|
||
Cash Provided by Operating Activities
Net cash provided by operating activities was $114.2 million for the thirty-nine weeks ended November 1, 2025 as compared to net cash provided by operating activities of $79.7 million for the
thirty-nine weeks ended November 2, 2024. The increase in net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025 was primarily due to an increase in net income year over year, partially offset by changes in
working capital, most notably the timing of merchandise payments.
Cash Used in Investing Activities
Net cash used in investing activities for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $146.1 million and $183.4 million, respectively. The decrease in cash used in
investing activities is primarily due to an increase in maturities of investment securities, in addition to a decrease in capital expenditures. For the thirty-nine weeks ended November 1, 2025, purchases of investments were $363.4 million offset
with maturities of investments of $300.8 million. For the thirty-nine weeks ended November 2, 2024, purchases of investments were $351.3 million offset with maturities of investments of $263.7 million.
Cash Used in Financing Activities
Net cash used in financing activities for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $28.5 million and $33.8 million, respectively. The decrease in cash used in
financing activities is primarily due to a decrease in the repurchase of common stock in the thirty-nine weeks ended November 1, 2025 compared to the thirty-nine weeks ended November 2, 2024.
Contractual Obligations
We enter into long-term contractual obligations and commitments in the normal course of business, primarily operating leases. Except as set forth in Note 4 of the accompanying unaudited condensed
consolidated financial statements, there have been no material changes to our contractual obligations as disclosed in our Annual Report, other than those which occur in the ordinary course of business.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on
our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and
related disclosures. There have been no significant changes in the significant accounting policies and estimates.
Recently Issued Accounting Pronouncements
Not applicable.
Interest Rate Risk
We are subject to interest rate risk in connection with borrowings under our Revolving Credit Facility, which bears interest at variable rates. As of November 1, 2025, we had no outstanding
variable rate debt.
As of November 1, 2025, there were no material changes in the market risks described in the “Quantitative and Qualitative Disclosure of Market Risks” section of our Annual Report.
Impact of Inflation
Our results of operations and financial condition are presented based on historical cost. While it is difficult to accurately measure the impact of inflation due to the imprecise
nature of the estimates required, we believe the effects of inflation, if any, on our historical results of operations and financial condition have been immaterial. We cannot be assured that our results of operations and financial condition will
not be materially impacted by inflation in the future.
Evaluation of Disclosure Controls and Procedures
Our management has evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and
procedures, as defined in Rule 13(a)-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q pursuant to Rule 13a-15(b) of the Exchange Act. Based on
that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q are effective at a reasonable assurance
level in ensuring that information required to be disclosed in our Exchange Act reports is: (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and
procedures will prevent or detect all errors and all fraud. While our disclosure controls and procedures are designed to provide reasonable assurance of their effectiveness, because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
Changes in Internal Control over Financial Reporting
There were no changes to our internal control over financial reporting during the third quarter of fiscal 2025 that have materially affected, or that are reasonably likely to materially affect,
our internal control over financial reporting.
PART II - OTHER INFORMATION
| ITEM 1. |
LEGAL PROCEEDINGS
|
From time to time we may be involved in claims and legal actions that arise in the ordinary course of our business. We cannot predict the outcome of any litigation or suit to
which we are a party. However, we do not believe that an unfavorable decision of any of the current claims or legal actions against us, individually or in the aggregate, will have a material adverse effect on our financial position, results of
operations, liquidity or capital resources.
| ITEM 1A. |
RISK FACTORS
|
See Item 1A in our Annual Report for a detailed description of risk factors affecting the Company. There have been no material changes from the risk factors previously disclosed
in that filing.
| ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Information on Share Repurchases
Information regarding shares of common stock the Company repurchased during the thirteen weeks ended November 1, 2025 is as follows:
|
Period
|
Total number
of shares
repurchased
(1)
|
Average
price paid
per share (2)
|
Total number of
shares
purchased as
part of publicly
announced plans
or programs (3)
|
Approximate dollar
value of shares that
may yet be purchased
under the plans or
programs (3)
|
||||||||||||
|
August 3, 2025 through August 30, 2025
|
23,537
|
134.32
|
23,537
|
$
|
300,841,433
|
|||||||||||
|
August 31, 2025 through October 4, 2025
|
31,128
|
131.96
|
31,128
|
$
|
296,702,042
|
|||||||||||
|
October 5, 2025 through November 1, 2025
|
33,933
|
124.53
|
33,933
|
$
|
292,446,685
|
|||||||||||
|
Total
|
88,598
|
88,598
|
||||||||||||||
| (1) |
Consists of shares repurchased under the publicly announced share repurchase program.
|
| (2) |
Includes commissions for the shares repurchased under the share repurchase program.
|
| (3) |
Between December 15, 2020, and November 30, 2023, the Company’s Board of Directors approved and authorized the repurchase of up to $400.0 million of shares of the Company’s common stock through three
separate approvals, set to expire March 31, 2026. On March 19, 2025, the Company’s Board of Directors approved a new share repurchase authorization of an additional $300.0 million of the Company’s outstanding common stock, effective
through March 31, 2029. Shares to be repurchased are subject to the same considerations regarding timing and amount of repurchases as the initial authorization. As of November 1, 2025, the
Company had $292.5 million remaining under its share repurchase program. For further discussion on the share repurchase program, see “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations,
Liquidity and Capital Resources, Share Repurchase Program.”
|
Trading Arrangements of Directors and Executive Officers
During the thirteen weeks ended November 1, 2025, certain of our executives entered into written plans for the purchase or sale of our securities through a broker that are
intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information.
The material terms of these trading plans are set forth in the table below.
| Director/Officer | Action & Date of Action | Commencement of Trading Period | Scheduled Termination of Trading Period (1) | Security Covered | Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule | Covers Purchase or Sale? | ||
| | | | | Common Stock | | Sale | ||
| | | | | Common Stock | | Sale |
| (1) | The plan is subject to earlier termination under certain circumstances specified in the plans, including upon the sale of all shares subject to the plan and upon either party to a plan giving notice of |
| (2) |
Subject to adjustments for stock splits, stock combinations, stock dividends and other similar changes to our common stock.
|
|
Exhibit No.
|
Description of Exhibits
|
|
|
Ollie’s Bargain Outlet Holdings, Inc. 2025 Equity Incentive Plan (incorporated by reference to Exhibit 4.4 to the Form S-8 Registration Statement filed by the Company on June 18, 2025 (No. 333-288146)).
|
||
|
*31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
*31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
*32.1
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
*32.2
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
**101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
|
|
**101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
**101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
**101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
**101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
**101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
**104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
| † |
Previously filed.
|
| * |
Filed herewith.
|
| ** |
Submitted electronically with this Report.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
OLLIE’S BARGAIN OUTLET HOLDINGS, INC.
|
||
|
Date: December 9, 2025
|
/s/ Robert Helm
|
|
|
Robert Helm
|
||
|
Executive Vice President and Chief Financial Officer
|
||
|
(Principal Financial and Accounting Officer)
|
35