Ollies Bargain Outlet Holdings Inc
Q2 2027 Earnings
Market Reaction
Did OLLI Beat Earnings? Q2 2027 Results
Ollie's Bargain Outlet delivered a striking earnings beat in Q2 fiscal 2026, posting adjusted EPS of $1.42 against a consensus estimate of $1.12, a 26.40% positive surprise, even as revenue of $741.30 million came in slightly below the $751.59 million analysts expected. The top-line miss was cushioned by 9.1% year-over-year sales growth, though comparable store sales slipped 1.8% amid softer consumer spending and unfavorable weather. The real story was margin performance: gross margin expanded 360 basis points to 43.5%, powered in large part by $28.30 million in IEEPA tariff refunds that contributed 380 basis points to the improvement, a windfall the company plans to reinvest in pricing to sharpen its competitive edge. Adjusted net income climbed 40.3% to $85.45 million, and adjusted EBITDA reached $127.09 million, or 17.1% of net sales. Looking ahead, Ollie's trimmed its full-year revenue outlook to $2.93 to $2.94 billion but raised adjusted EPS guidance to $4.57 to $4.65, reflecting confidence that margin gains will more than offset softer comparable sales trends.
- New store unit growth drove 9.1% net sales increase
- IEEPA tariff refunds benefited gross margin by 380 basis points
- Lower supply chain costs contributed to 360 basis points gross margin expansion
- Comp store sales declined 1.8% driven by decreased average basket size
- SG&A deleverage of 80 basis points from fixed cost pressures and higher marketing expenses
- Pre-opening expenses decreased 42.0% to $5.2 million due to fewer store openings
“We delivered strong earnings growth in the second quarter and continued to execute against our key 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.”
Ollie's Bargain Outlet CEO, on the earnings call
Forward Guidance & Outlook
The company updated its fiscal 2026 outlook, lowering net sales guidance to $2.928–$2.941 billion (from $2.980–$3.000 billion) and reducing comparable store sales growth to 0%–0.5% (from ~2%). Gross margin guidance was raised to ~41.3% (from ~40.7%), reflecting $28.3 million in IEEPA tariff refunds received in Q2, which the company intends to reinvest in pricing. Operating income is now expected at $345–$350 million (from $340–$348 million). Adjusted net income per diluted share was raised to $4.57–$4.65 (from $4.45–$4.55). Capital expenditures remain at $103–$113 million. Share repurchases were increased to ~$175 million (from ~$125 million). New store openings remain at 75 (gross). Effective tax rate expected at ~25% and diluted weighted average shares outstanding at ~60.0 million.
OLLI YoY Financials
Figures from SEC filings and company reports. Not investment advice.