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OLLI Q4 adj EPS of $1.39 beat estimates; sales rose 16.8% to $779.3M but narrowly missed forecasts.
Ollie's Bargain expanded to 645 stores after opening 86 in FY25, while loyalty membership grew 12% to 17M.
OLLI expects FY26 EPS of $4.40-$4.50, up from adjusted EPS of $3.86 in FY25.
Ollie’s Bargain Outlet Holdings, Inc. (OLLI - Free Report) delivered mixed fourth-quarter fiscal 2025 results, with revenues slightly coming shy of the Zacks Consensus Estimate but earnings surpassing the same. Encouragingly, both metrics improved year over year, with healthy comparable-store sales growth supported by strong new store performance, accelerating customer acquisition and sustained traction in key consumable and seasonal categories.
The company’s value-driven model continues to resonate with consumers against a still-challenging retail backdrop. In fiscal 2025, the company introduced 86 stores, exiting the year with 645 stores in 34 states, which shows an increase of 15.4%. The company’s Ollie’s Army loyalty program grew more than 12% to 17 million members.
OLLI’s Performance: Key Metrics & Insights
Ollie’s Bargain delivered adjusted earnings of $1.39 a share, topping the Zacks Consensus Estimate of $1.38. This also compared favorably with $1.19 earned in the prior-year period, marking a 16.8% year-over-year increase.
Net sales rose 16.8% to $779.3 million, driven by a record pace of store openings, new store unit growth and solid comparable-store sales performance. However, the top line came in slightly below the Zacks Consensus Estimate of $781 million. Comparable-store sales grew 3.6%, fueled by a rise in basket and transactions. Seasonal, consumables, hardware, stationery and sporting goods remained the top-performing categories in the reported quarter. We had projected comparable-store sales growth of 2.8% for the quarter under review.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
The gross profit rose 14.5% to $310.9 million. However, gross margin dipped 80 basis points to 39.9%. The decline was mainly attributable to planned investments in price. Despite the margin contraction, the result was better than management’s expectations. We had anticipated a 140-basis-point contraction in gross margin.
SG&A expenses, as a percentage of net sales, leveraged 130 basis points to 24.2%. Adjusted SG&A expenses, as a percentage of net sales, also fell 40 basis points to 24.2%, buoyed by leveraged fixed costs from the higher comparable store sales and gains from the company’s optimization actions in marketing.
Operating income rose 24.4% to $109.1 million, while the operating margin expanded 80 basis points to 14%. Adjusted EBITDA climbed 16.2% to $127.1 million, with the margin declining 10 basis points to 16.3%. We had anticipated a 30-basis-point expansion in the adjusted operating margin, while a 40-basis-point decrease in the adjusted EBITDA margin.
Ollie's Bargain’s Financial Snapshot
Ollie's Bargain ended the quarter with $562.8 million in total cash and investments, marking a 31.3% year-over-year increase. The balance sheet remains debt-light, providing flexibility for growth investments and opportunistic share repurchases. Capital expenditures were $18 million during the quarter, with investment focused on new stores.
The company repurchased $73.8 million worth of stock in fiscal 2025, underscoring its commitment to shareholder returns.
What to Expect From OLLI in Fiscal 2026?
Management issued guidance for fiscal 2026. Net sales are now projected in the range of $2.985-$3.013 billion, up from $2.649 billion seen in fiscal 2025. Comparable store sales growth is now forecast at 2% compared with 3.7% recorded last fiscal. The gross margin is expected at 40.5%. It expects to open 75 stores.
Operating income is anticipated between $339 million and $348 million. Adjusted net income is forecast between $270 million and $277 million.
Management envisions fiscal 2026 adjusted earnings in the range of $4.40-$4.50 per share, up from the adjusted earnings of $3.86 reported last fiscal. Capital expenditures are projected in the $103-$113 million band. It expects share repurchases of $100 million. The effective tax rate is projected to be 25%.
Shares of this Zacks Rank #2 (Buy) company have fallen 7.2% in the past three months against the industry’s growth of 2.8%.
Other Stocks to Consider in the Consumer Staples Space
The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.8% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 50%, on average.
B&G Foods, Inc. (BGS - Free Report) , boasts a diversified portfolio of brands, including B&G, B&M, Cream of Wheat, Las Palmas, and others, and currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for B&G Foods’ current financial-year earnings is expected to rise 5.9% from the year-ago reported figure. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27% from the year-ago number.
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Ollie's Bargain Q4 Earnings Beat Estimates, Comps Rise 3.6% Y/Y
Key Takeaways
Ollie’s Bargain Outlet Holdings, Inc. (OLLI - Free Report) delivered mixed fourth-quarter fiscal 2025 results, with revenues slightly coming shy of the Zacks Consensus Estimate but earnings surpassing the same. Encouragingly, both metrics improved year over year, with healthy comparable-store sales growth supported by strong new store performance, accelerating customer acquisition and sustained traction in key consumable and seasonal categories.
The company’s value-driven model continues to resonate with consumers against a still-challenging retail backdrop. In fiscal 2025, the company introduced 86 stores, exiting the year with 645 stores in 34 states, which shows an increase of 15.4%. The company’s Ollie’s Army loyalty program grew more than 12% to 17 million members.
OLLI’s Performance: Key Metrics & Insights
Ollie’s Bargain delivered adjusted earnings of $1.39 a share, topping the Zacks Consensus Estimate of $1.38. This also compared favorably with $1.19 earned in the prior-year period, marking a 16.8% year-over-year increase.
Net sales rose 16.8% to $779.3 million, driven by a record pace of store openings, new store unit growth and solid comparable-store sales performance. However, the top line came in slightly below the Zacks Consensus Estimate of $781 million. Comparable-store sales grew 3.6%, fueled by a rise in basket and transactions. Seasonal, consumables, hardware, stationery and sporting goods remained the top-performing categories in the reported quarter. We had projected comparable-store sales growth of 2.8% for the quarter under review.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote
What Margins Have to Say About Ollie's Bargain
The gross profit rose 14.5% to $310.9 million. However, gross margin dipped 80 basis points to 39.9%. The decline was mainly attributable to planned investments in price. Despite the margin contraction, the result was better than management’s expectations. We had anticipated a 140-basis-point contraction in gross margin.
SG&A expenses, as a percentage of net sales, leveraged 130 basis points to 24.2%. Adjusted SG&A expenses, as a percentage of net sales, also fell 40 basis points to 24.2%, buoyed by leveraged fixed costs from the higher comparable store sales and gains from the company’s optimization actions in marketing.
Operating income rose 24.4% to $109.1 million, while the operating margin expanded 80 basis points to 14%. Adjusted EBITDA climbed 16.2% to $127.1 million, with the margin declining 10 basis points to 16.3%. We had anticipated a 30-basis-point expansion in the adjusted operating margin, while a 40-basis-point decrease in the adjusted EBITDA margin.
Ollie's Bargain’s Financial Snapshot
Ollie's Bargain ended the quarter with $562.8 million in total cash and investments, marking a 31.3% year-over-year increase. The balance sheet remains debt-light, providing flexibility for growth investments and opportunistic share repurchases. Capital expenditures were $18 million during the quarter, with investment focused on new stores.
The company repurchased $73.8 million worth of stock in fiscal 2025, underscoring its commitment to shareholder returns.
What to Expect From OLLI in Fiscal 2026?
Management issued guidance for fiscal 2026. Net sales are now projected in the range of $2.985-$3.013 billion, up from $2.649 billion seen in fiscal 2025. Comparable store sales growth is now forecast at 2% compared with 3.7% recorded last fiscal. The gross margin is expected at 40.5%. It expects to open 75 stores.
Operating income is anticipated between $339 million and $348 million. Adjusted net income is forecast between $270 million and $277 million.
Management envisions fiscal 2026 adjusted earnings in the range of $4.40-$4.50 per share, up from the adjusted earnings of $3.86 reported last fiscal. Capital expenditures are projected in the $103-$113 million band. It expects share repurchases of $100 million. The effective tax rate is projected to be 25%.
Shares of this Zacks Rank #2 (Buy) company have fallen 7.2% in the past three months against the industry’s growth of 2.8%.
Other Stocks to Consider in the Consumer Staples Space
Freshpet, Inc. (FRPT - Free Report) , which is a pet food company, currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.8% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 50%, on average.
B&G Foods, Inc. (BGS - Free Report) , boasts a diversified portfolio of brands, including B&G, B&M, Cream of Wheat, Las Palmas, and others, and currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for B&G Foods’ current financial-year earnings is expected to rise 5.9% from the year-ago reported figure. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27% from the year-ago number.