Ollie's Bargain Outlet Q2 2026 net sales rise 9.1% to $741 million

Ollie's Bargain Outlet (NASDAQ: OLLI ) released second-quarter financial results and hosted an earnings call on Wednesday.

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Access the full call at Summary Ollie's Bargain Outlet reported a 9.1% increase in net sales to $741 million, driven by new store openings despite a 1.8% decline in comparable store sales.

The company opened 50 new stores in Q2, bringing the total to 42 for the first half of the year, aiming for a full-year target of 75 new stores.

Gross margin rose by 360 basis points to 43.5%, primarily due to IEIPA tariff refunds, offsetting higher transport costs and price investments.

Adjusted net income increased 40% to $85 million, and adjusted EPS rose 43% to $1.42.

The company repurchased $84 million of its stock in the quarter.

Ollie's updated its full-year guidance to reflect recent sales trends, forecasting net sales of $2.928 to $2.941 billion and comparable store sales growth of flat to positive 0.5%.

Management noted that the consumer remains resilient but selective, with higher-income customers trading down and lower-income customers prioritizing needs.

Strategically, the company focuses on optimizing its assortment and category mix, with a test-and-learn approach to improve merchandising and customer experience.

Ollie's is investing in its supply chain, having completed the expansion of its Texas distribution center and planning to expand its Illinois facility.

Despite a challenging Q2, management remains confident in long-term growth, emphasizing value and continued engagement with loyal customers.

Full Transcript Carmen, Operator Good morning and welcome to Ollie's Bargain Outlet conference call to discuss financial results for the second quarter of fiscal year 2026.

Please be advised that this call is being recorded and the reproduction of this call in whole or in part permitted without the express written authorization of Ollie's.

I would now like to introduce our host for today's call, John Rollo, Managing Director of Corporate Communications and Business Development for Ollie's.

John, please go ahead.

John Rollo, Managing Director of Corporate Communications and Business Development Thank you, Carmen.

Good morning everybody.

We appreciate your time and participation.

Joining me on today's call from Ollie's are Eric van der Valk, President and Chief Executive Officer, and Robert Helm, Executive Vice President and Chief Financial Officer.

Following their prepared remarks, we will open the call for your questions.

We ask that you please limit yourself to one question so that we can get to as many people as possible within the one hour time limit.

Finally, let me remind you that certain comments made on today's call may constitute forward-looking statements and these are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended.

Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.

Those risks and uncertainties are described in the Company's earnings press release and filings with the SEC, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Forward-looking statements are made as of the date of this call and the Company does not undertake any obligation to update these statements on today's call.

The Company will also be referring to certain non-GAAP financial measures.

Reconciliations of the most closely comparable GAAP financial measures to the non-GAAP financial measures are included in the Company's earnings press release.

With all of that said, it's now my pleasure to turn the call over to Eric.

Eric van der Valk, President & CEO Good morning and thank you for joining us today.

We delivered strong earnings growth in the second quarter and continue to execute against our strategic initiatives.

Comparable store sales declined 1.8% against a challenging multi-year stack.

We believe our sales results were negatively impacted by the combination of less favorable weather, continued economic pressure on the consumer, and an elevated promotional environment, which all led to a more challenging backdrop than we originally expected.

Outside of weather-impacted categories, the broader business performed generally in line with our expectations and we continue to see customers actively seeking value.