Ollie’s (OLLI) Earnings Jump 43% Despite Falling Comparable Sales—Can Store Growth Keep It Going?

Ollie’s Bargain Outlet Holdings Inc. (NASDAQ:OLLI) reported a 43% jump in earnings for the second quarter, in spite of falling sales at its comparable stores. The company's ongoing expansion of its store network, coupled with strong performance from its loyalty program, Ollie’s Army, helped drive this growth. Ollie’s opened 15 new stores and closed one due to storm damage, bringing its total store count to 686 across 36 states—a 11.9% increase year-over-year.

The company aims to open 75 more stores by the end of the fiscal year, reinforcing its expansion strategy. Despite a 1.8% dip in comparable store sales, net sales grew by 9.1% to $741.3 million, largely due to the success of the loyalty program. Gross margins expanded to 43.5%, aided by lower supply chain costs and a $380 million benefit from IEEPA tariff refunds.

Adjusted net income rose 40.3% to $85.4 million, and adjusted net income per diluted share increased 43.4% to $1.42. The company's guidance for the full year has been adjusted to reflect revised second-half sales expectations, with net sales anticipated between $2.928 billion and $2.941 billion, down from the previous range of $2.980 billion to $3 billion.

Ollie's dividend policy includes $137.3 million in share repurchases in the first half of 2026 and an additional $121.5 million available for future buybacks.