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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Developed al ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Ollie's Bargain Outlet Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 001-37501 80-0848819 (Commission File Number) (IRS Emplo ...

Core Viewpoint - Ollie's Bargain Outlet is experiencing a surge in profitability, leading to a significant increase in its stock price, which has reached its highest level in nearly three years following the release of its fiscal Q1 2024 financial results [1][3]. Financial Performance - The company reported a same-store sales growth of 3% in Q1, which, while modest, exceeded expectations and positively impacted profit margins [2][3]. - Ollie's operating income for Q1 surged by nearly 47% to almost $57 million, with expectations to earn at least $250 million for the year, a substantial figure given its market capitalization of approximately $5.5 billion [3]. Business Strategy and Positioning - Ollie's focuses on offering closeout merchandise at low prices, appealing to consumers seeking bargains, especially in challenging economic times [2]. - The company is steadily opening new stores and is strategically positioned to capitalize on opportunities, as evidenced by its recent acquisition of 11 stores from the bankrupt 99 Cents Only Stores for under $15 million [4][5]. Financial Health - With nearly $350 million in cash and no debt, Ollie's is in a strong financial position, allowing it to be patient and take advantage of market opportunities [5]. Long-term Outlook - Despite the current stock price highs, there is potential for further long-term upside for shareholders, indicating a positive outlook for the company's future performance [6].

Ollie's Bargain Outlet Holdings, Inc. (OLLI) reported first-quarter fiscal 2024 results, wherein both the top and bottom lines not only beat the Zacks Consensus Estimate but also increased year over year. This Harrisburg, PA-based company also witnessed an uptick in comparable store sales. The company's focus on value-driven merchandise assortments positioned it well to capitalize on opportunities in the marketplace and effectively meet consumer demand. The better-than-expected performance prompted manageme ...

Financial Data and Key Metrics Changes - In Q1 2024, net sales increased by 11% to $509 million, driven by new store growth and a 3% increase in comparable store sales [30] - Operating income rose by 47% to $56 million, with operating margin increasing by 270 basis points to 11.1% [54] - Adjusted net income increased by 47% to $45 million, and adjusted earnings per share rose by 49% to $0.73 [54] - Gross margin improved by 220 basis points to 41.1%, primarily due to favorable supply chain costs and higher merchandise margins [31] Business Line Data and Key Metrics Changes - The company opened four new stores, ending the quarter with 516 stores across 30 states, marking an 8% year-over-year increase [31] - Over 50% of product categories reported positive comparable sales, with strong performance in lawn and garden, housewares, food, sporting goods, and candy [53] Market Data and Key Metrics Changes - The company is experiencing growth in the younger customer demographic, with Ollie's Army membership increasing by 7% to 14.2 million members, representing over 80% of total sales [53] - The company noted a trade-down effect, with higher-income consumers seeking value, particularly in the $100,000 to $150,000 household income range [66] Company Strategy and Development Direction - The company is focused on expanding its footprint, with plans to open a total of 50 new stores, while also acquiring 11 99 Cents Only Stores to strengthen its market presence in Texas [35][58] - Investments in supply chain, store operations, and marketing are aimed at enhancing execution and driving long-term growth [23][50] - The company is shifting advertising dollars towards digital and social media platforms to attract younger customers [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of deal flow and operational improvements, which are expected to continue supporting growth [100] - The company anticipates a flat comparable sales growth in Q3 due to a shift in promotional flyers, with expectations for Q4 comps to be slightly above long-term averages [35] - Management remains cautious about supply chain costs and is planning conservatively for the remainder of the year [152] Other Important Information - The company ended the quarter with $342 million in cash and short-term investments, with no outstanding borrowings under its revolving credit facility [32] - The company is committed to returning capital to investors through share repurchases, having bought back $25 million of its common stock during the quarter [33] Q&A Session Summary Question: Consumer health and outlook - Management noted that the trade-down effect is still prevalent among higher-income consumers, with stability in lower-income cohorts [66][67] Question: Characteristics of new stores - The new stores are in the mid-20,000 square feet range, smaller than the average, which helps with inventory management [72] Question: Competitive environment for closeout deals - Management indicated that competition in the closeout market remains limited, allowing the company to secure favorable deals [78] Question: Drivers of gross margin strength - The gross margin increase was primarily due to supply chain improvements and favorable merchandise margins [83] Question: Shrink control update - Shrink remains elevated but has plateaued, with ongoing efforts to improve control [129] Question: Economics of 99 Cents Only Stores - The new stores are expected to be slightly less productive in sales but will have lower occupancy and payroll costs, making them economically viable [130]

For the quarter ended April 2024, Ollie's Bargain Outlet (OLLI) reported revenue of $508.82 million, up 10.8% over the same period last year. EPS came in at $0.73, compared to $0.49 in the year-ago quarter. The reported revenue represents a surprise of +0.60% over the Zacks Consensus Estimate of $505.79 million. With the consensus EPS estimate being $0.65, the EPS surprise was +12.31%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations t ...

Core Viewpoint - Ollie's Bargain Outlet reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing an increase from $0.49 per share a year ago, indicating a positive earnings surprise of 12.31% [1] Financial Performance - The company achieved revenues of $508.82 million for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 0.60%, and up from $459.15 million in the same quarter last year [2] - Over the last four quarters, Ollie's has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Ollie's Bargain Outlet shares have increased approximately 8.1% since the beginning of the year, while the S&P 500 has gained 10.9%, indicating underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.80 for the coming quarter and $3.19 for the current fiscal year, with revenues projected at $561.56 million and $2.27 billion respectively [7] - The estimate revisions trend for Ollie's is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Ollie's belongs, is currently in the top 20% of over 250 Zacks industries, indicating a favorable industry outlook that could positively impact stock performance [8]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [First Quarter Fiscal 2024 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202024%20Highlights) Ollie's reported strong Q1 2024 results with significant increases in net sales, comparable store sales, and earnings per share, leading to a raised fiscal year outlook - CEO John Swygert attributed the strong performance to high-level execution, offering amazing deals, and the company's unique business model which resonates with value-seeking consumers[3](index=3&type=chunk) Q1 Fiscal 2024 Key Financial Metrics | Metric | Q1 2024 | Change vs. Q1 2023 | | :--- | :--- | :--- | | Total Net Sales | $508.8 million | +10.8% | | Comparable Store Sales | +3.0% | - | | Operating Income | $56.5 million | +46.6% | | Net Income | $46.3 million | +49.6% | | Diluted EPS | $0.75 | +50.0% | | Adjusted Net Income | $45.2 million | +47.0% | | Adjusted Diluted EPS | $0.73 | +49.0% | | Adjusted EBITDA | $69.4 million | +40.3% | - The company opened **4 new stores** during the quarter, bringing the total to **516 stores** across 30 states, an **8.4% year-over-year increase** in store count[3](index=3&type=chunk) [Detailed First Quarter Financial Results](index=2&type=section&id=Detailed%20First%20Quarter%20Financial%20Results) Net sales grew 10.8% to $508.8 million, driven by new store openings and comparable store sales, leading to a 46.6% surge in operating income to $56.5 million and gross margin expansion to 41.1% - The **10.8% increase** in net sales to **$508.8 million** was a result of both new store unit growth and a **3.0% rise** in comparable store sales[4](index=4&type=chunk) - Gross profit increased **17.2% to $209.4 million**. Gross margin rose to **41.1%** from 38.9% in the prior year, primarily due to favorable supply chain costs and higher merchandise margin[5](index=5&type=chunk) - SG&A expenses as a percentage of net sales decreased to **28.0%** from 28.4% due to leverage of fixed expenses on the increase in comparable store sales[6](index=6&type=chunk) - Net income saw a significant increase of **49.6% to $46.3 million**, or **$0.75 per diluted share**, compared to $31.0 million, or $0.50 per diluted share, in Q1 2023[8](index=8&type=chunk) [Balance Sheet and Cash Flow Highlights](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights) The company ended Q1 with a strong cash position of $341.5 million and no outstanding borrowings, while repurchasing $25.0 million in stock and investing $26.9 million in capital expenditures - As of the end of Q1 2024, the company held **$341.5 million** in cash, cash equivalents, and short-term investments, with no borrowings outstanding under its $100 million revolving credit facility[10](index=10&type=chunk) - The company invested **$25.0 million** to repurchase **336,934 shares** of its common stock during the quarter, with **$60.6 million** remaining under the current repurchase program[11](index=11&type=chunk) - Capital expenditures totaled **$26.9 million**, mainly directed towards a new distribution center in Princeton, IL, store remodels, and new store development[13](index=13&type=chunk) [Outlook and Corporate Developments](index=3&type=section&id=Outlook%20and%20Corporate%20Developments) [Fiscal 2024 Outlook](index=3&type=section&id=Fiscal%202024%20Outlook) The company raised its fiscal 2024 full-year guidance, now projecting net sales between $2.257 billion and $2.277 billion and adjusted diluted EPS between $3.18 and $3.28, reflecting increased comparable store sales growth Fiscal 2024 Outlook Comparison | Metric | New Outlook | Previous Outlook | | :--- | :--- | :--- | | Net Sales | $2.257 to $2.277 billion | $2.248 to $2.273 billion | | Comparable Store Sales Increase | 1.5% to 2.3% | 1.0% to 2.0% | | Operating Income | $250 to $258 million | $243 to $251 million | | Adjusted Net Income per Diluted Share | $3.18 to $3.28 | $3.10 to $3.20 | | Capital Expenditures | $90 million | $85 million | [Strategic Initiatives and Leadership Succession](index=3&type=section&id=Strategic%20Initiatives%20and%20Leadership%20Succession) Ollie's is expanding its footprint by acquiring eleven former 99 Cents Only Stores locations in Texas for $14.6 million and announced a leadership succession plan for key executive roles - Subsequent to Q1, the company entered an agreement to acquire **eleven former 99 Cents Only Stores locations** in Texas for **$14.6 million**, consisting of three owned properties and eight leased properties[14](index=14&type=chunk) - A leadership succession plan was announced, which includes[17](index=17&type=chunk) - John Swygert transitioning to Executive Chairman in early 2025 - Eric van der Valk promoted to President, and to CEO in early 2025 - Chris Zender appointed as EVP and Chief Operating Officer, effective June 17, 2024 [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for the thirteen weeks ended May 4, 2024, compared to the thirteen weeks ended April 29, 2023, detailing revenues, costs, and profits Condensed Consolidated Statements of Income (in thousands) | | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net sales | $508,818 | $459,154 | | Gross profit | $209,358 | $178,571 | | Operating income | $56,497 | $38,539 | | Net income | $46,342 | $30,980 | | Diluted EPS | $0.75 | $0.50 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of May 4, 2024, and April 29, 2023, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | | May 4, 2024 | April 29, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $212,250 | $134,959 | | Inventories | $527,469 | $497,988 | | Total current assets | $878,782 | $783,268 | | Total assets | $2,311,468 | $2,091,038 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $310,792 | $278,213 | | Total liabilities | $779,044 | $707,082 | | Total stockholders' equity | $1,532,424 | $1,383,956 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section contains the unaudited condensed consolidated statements of cash flows for the thirteen-week periods ending May 4, 2024, and April 29, 2023, showing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,184 | $35,872 | | Net cash used in investing activities | ($68,515) | ($99,311) | | Net cash used in financing activities | ($25,681) | ($12,198) | | Net decrease in cash and cash equivalents | ($54,012) | ($75,637) | | Cash and cash equivalents, end of the period | $212,250 | $134,959 | [Supplemental Information and Non-GAAP Reconciliation](index=9&type=section&id=Supplemental%20Information%20and%20Non-GAAP%20Reconciliation) [Reconciliation of GAAP Net Income to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20Net%20Income) This section provides a reconciliation of GAAP net income and net income per diluted share to their non-GAAP adjusted counterparts for the first quarters of fiscal 2024 and 2023. The primary adjustment is for the excess tax benefit related to stock-based compensation Reconciliation of GAAP Net Income to Adjusted Net Income (in thousands) | | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $46,342 | $30,980 | | Excess tax benefit related to stock-based compensation | ($1,132) | ($228) | | Adjusted net income (Non-GAAP) | $45,210 | $30,752 | Reconciliation of GAAP Net Income per Diluted Share to Adjusted Net Income per Diluted Share | | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net income per diluted share (GAAP) | $0.75 | $0.50 | | Excess tax benefit adjustment | ($0.02) | $0.00 | | Adjusted net income per diluted share (Non-GAAP) | $0.73 | $0.49 | [Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section details the reconciliation of GAAP net income to the non-GAAP measures of EBITDA and Adjusted EBITDA. Adjustments include interest, taxes, depreciation, amortization, and non-cash stock-based compensation Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (in thousands) | | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Net income | $46,342 | $30,980 | | Interest (income), net | ($4,301) | ($2,675) | | Depreciation and amortization | $9,785 | $8,074 | | Income tax expense | $14,456 | $10,234 | | **EBITDA** | **$66,282** | **$46,613** | | Non-cash stock-based compensation | $3,149 | $2,863 | | **Adjusted EBITDA** | **$69,431** | **$49,476** | [Key Operating Statistics](index=11&type=section&id=Key%20Operating%20Statistics) This section presents key operating metrics for the first quarter of fiscal 2024, including store count changes, average net sales per store, and comparable store sales growth, providing insight into the company's operational scale and efficiency Key Statistics | Metric | Thirteen weeks ended May 4, 2024 | Thirteen weeks ended April 29, 2023 | | :--- | :--- | :--- | | Stores open at end of period | 516 | 476 | | New stores | 4 | 9 | | Comparable stores sales change | 3.0% | 4.5% |

~ Comparable Store Sales increased 3.0% ~ ~ Earnings per Share increased 50.0% to $0.75 ~ ~ Adjusted Earnings per Share increased 49.0% to $0.73 ~ ~ Raising Fiscal Year Sales and Earnings Outlook ~ HARRISBURG, Pa., June 05, 2024 (GLOBE NEWSWIRE) -- Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) (the "Company") today reported financial results for the first quarter ended May 4, 2024. First Quarter Summary: (1) As used throughout this release, adjusted net income, adjusted net income per diluted share, E ...