Ollie's Bargain Outlet Q1 income climbs; sales, EPS modestly higher

Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported stronger first-quarter results for the period ended May 3, 2025, with net sales up 13.4% to $576.8 million and improvements in both GAAP net income and adjusted earnings per share. Management attributed the gains to accelerated store openings and growth in its loyalty program.

Net income for the quarter was $47.6 million, diluted earnings per share were $0.77 and adjusted diluted EPS totaled $0.75. The company opened 25 new stores during the quarter—18 of which were former Big Lots locations acquired through bankruptcy auction—bringing the total store count to 584. Comparable store sales increased 2.6%, and adjusted EBITDA was $72.2 million, representing a 12.5% adjusted EBITDA margin.

Operational drivers included unit growth, higher transaction counts and a 9.2% increase in Ollie’s Army loyalty membership to more than 15.5 million members. Gross margin remained at 41.1%, while selling, general and administrative expenses rose to 28.6% of sales due to higher medical and casualty claims and increased pre-opening costs associated with new stores. The company repurchased $17.1 million of common stock during the quarter and reported total cash and investments of $414.9 million.

Ollie’s reaffirmed its fiscal 2025 outlook, maintaining guidance for adjusted net income per diluted share in the $3.65 to $3.75 range and targeting 75 new store openings. Management noted that the outlook assumes current tariffs remain in place and includes an estimated impact from dark rent related to the acquired former Big Lots sites. The strong cash position provides flexibility for further store conversions and share buybacks while navigating near-term cost pressures.

From a market perspective, the results broadly beat consensus estimates for the quarter and underscore continued consumer demand for value retailing. Analysts will be watching the performance of newly converted stores, margin trends as pre-opening and SG&A expenses normalize, and the company’s ability to sustain comparable-store sales growth. While store expansion and loyalty growth support revenue momentum, margin compression and higher operating expenses could introduce short-term volatility in the stock’s performance.