Ollie’s Bargain Outlet Holdings reported second-quarter adjusted earnings per share of $1.42, exceeding the $1.14 analyst consensus by 25%, as shares rose 2.6% in premarket trading on Wednesday.
Net sales for the quarter ended August 1 totaled $741.3 million, a 9.1% increase from $679.6 million a year earlier but below the $756.4 million estimate. Comparable store sales declined 1.8% after a 5.0% gain in the prior-year period, reflecting weaker consumer demand amid economic pressure and an elevated promotional environment.
Gross margin expanded by 360 basis points to 43.5%, driven by lower supply chain costs and IEEPA tariff refunds, which contributed 380 basis points to the improvement. The company opened 15 new stores during the quarter, ending with 686 locations across 36 states, an 11.9% increase year-over-year.
Full-year fiscal 2026 guidance was revised downward for revenue, with a new range of $2.928 billion to $2.941 billion, below prior guidance of $2.980 billion to $3.000 billion and the $2.96 billion consensus. Adjusted EPS guidance was raised to $4.57 to $4.65, up from $4.45 to $4.55 previously and above the $4.46 estimate.
Chief Executive Officer Eric van der Valk cited strong earnings growth and progress on strategic initiatives but noted sales were constrained by unfavorable weather, consumer economic pressures, and a competitive promotional landscape.
The discount retailer’s outlook reflects a cautious stance on near-term demand despite margin improvements and operational execution.
