HARRISBURG, Pa. — Ollie’s Bargain Outlet Inc. today reported higher sales and earnings for its fourth quarter and provided updated guidance reflecting management’s optimism about the months ahead.
The discount retailer said it continued to attract bargain-hunting shoppers in the 13 weeks to January 31 and that earnings were buoyed by effective cost controls.
Sales increased 17% to $779.3 million, slightly below Wall Street’s forecast. Comparable sales growth of 3.6% exceeded analysts’ expectations of a 3.3% gain. Fourth-quarter profit of $85.6 billion, or $1.39 a share, increased from the year-earlier $68.6 million, or $1.11 per share.
"We had a strong fourth quarter to cap off an exceptional year," said Eric van der Valk, Ollie's president and chief executive. "In the fourth quarter, we delivered better-than-expected sales and earnings, driven by solid comp growth, healthy margins, and disciplined expense control. For the full year, we opened a record 86 stores and grew our 'Ollie's Army' loyalty program by more than 12% to 17 million members.”
Nearing the Mid-Point on Path to 1,300 Retail Locations
Ollie’s ended its fiscal year with 645 stores across 34 states. The company entered its 35th state — Minnesota — in the current quarter. The guidance update issued today foresees 75 new stores in fiscal 2026. Ollie's plans to enter New Mexico later this year and is just halfway to its long-term goal of 1,300 stores, van der Valk said on an earnings call with analysts.
Expansion has been fueled in part by Ollie’s opportunistic buying of inventory and real estate from distressed or collapsing retailers like Big Lots! Ollie’s has been converting many of the 40 Big Lots! Locations it acquired in a bankruptcy auction.
Ollie’s growing network of stores helps the company attract new customers who might join the ranks of the “bargainauts” who comprise the core members of its loyalty program, which provides different perks to one- two- or three-star generals.
'America Loves a Bargain'
“New memberships in our Ollie's Army loyalty program increased 23% and our total customer file increased by more than 12%," van der Valk said. "On top of the accelerated membership growth, we are welcoming a wider breadth of customers. America loves a bargain and as we grow from east to west, we are expanding our customer demographics.”
Added van der Valk, "While new stores remain the cornerstone of our growth, we're also focused on driving comparable-store sales through better execution, leveraging our growing size and scale, and improving sales productivity. We touched on strengthening our product assortment. We are seeing opportunities arise in areas such as real estate and talent. When you combine this with the fact that we reinvest in the business every year because of our strong sales, profitability, cash generation and balance sheet, it feels like we've reached an inflection point."
