Financial Performance - Net sales for the fiscal year ended February 3, 2024, reached $2,102.7 million, a 15.0% increase from $1,827.0 million in the previous year[301] - Gross profit for the same period was $832.4 million, representing a gross margin of approximately 39.6%[301] - Operating income increased to $227.8 million, up 74.0% from $130.9 million in the prior year[301] - Net income for the fiscal year was $181.4 million, a significant increase of 76.3% compared to $102.8 million in 2023[301] - Basic earnings per share rose to $2.94, reflecting a 79.3% increase from $1.64 in the previous year[301] Inventory and Assets - As of February 3, 2024, inventories were valued at $505.8 million, with shrinkage estimation being a critical audit matter[295] - Total assets increased to $2,294,594, up from $2,044,096, representing a growth of approximately 12.2% year-over-year[304] - Cash and cash equivalents rose to $266,262, compared to $210,596, marking an increase of about 26.5%[310] - Total current assets increased to $871,428, up from $754,296, indicating a growth of around 15.5%[304] - Stockholders' equity increased to $1,508,232 from $1,362,069, reflecting a growth of approximately 10.7%[304] Expenses and Liabilities - The company reported a significant increase in selling, general and administrative expenses, totaling $562.7 million, up from $490.6 million in the previous year[301] - Total liabilities rose to $786,362, compared to $682,027, which is an increase of approximately 15.3%[304] - The Company’s total accrued expenses rose to $82,895,000 in 2024 from $76,959,000 in 2023, marking an increase of 7.5%[365] Cash Flow and Investments - The company reported net cash provided by operating activities of $254,497, significantly higher than $114,346 from the previous year[310] - The company invested $124,404 in property and equipment during the fiscal year, compared to $51,667 in the previous year, indicating a significant increase in capital expenditures[310] - The company holds Treasury Bonds valued at $49,765,000, Municipal Bonds at $10,136,000, and Corporate Bonds at $27,079,000 as of February 3, 2024[320] Tax and Compliance - The income tax expense for the fiscal year ended February 3, 2024, was $61.046 million, compared to $31.093 million in 2023 and $46.928 million in 2022[373] - The effective income tax rate for the fiscal year ended February 3, 2024, was 25.2%, an increase from 23.2% in 2023 and 23.0% in 2022[373] - Total deferred tax assets as of February 3, 2024, were $134.173 million, up from $120.684 million in 2023[375] Shareholder Activities - In 2023, the company repurchased 808,669 shares of its common stock for $52.5 million, while in 2022, it repurchased 848,133 shares for $41.8 million, and in 2021, it repurchased 3,113,981 shares for $220.0 million[394] - As of February 3, 2024, the company had $85.7 million remaining under its share repurchase authorization[394] Market Expansion - The company expanded to 512 retail locations across 30 states as of February 3, 2024, indicating continued market expansion[313] Miscellaneous - The impact of inflation on the company's financial condition has been deemed immaterial, although future impacts cannot be ruled out[285] - The company has no outstanding variable rate debt under its Revolving Credit Facility as of February 3, 2024[284] - The company has not recorded any impairment of goodwill or intangible assets for the fiscal years 2023, 2022, and 2021[333][335]

• Total net sales increased 18.0% to $648.9 million. Excluding the impact of the 53rd week, net sales increased 11.9%. Net sales in the 53rd week were $34.0 million and contributed approximately $0.04 to diluted earnings per share. • Comparable store sales increased 3.9% from the prior year increase of 3.0%. • The Company opened 7 new stores, ending the quarter with 512 stores in 30 states, a year-over-year increase in store count of 9.4%. • Operating income increased 44.3% to $97.7 million and operating ma ...

[Report Information](index=1&type=section&id=Report%20Information) This section provides key administrative details of the Form 10-Q filing for Ollie's Bargain Outlet Holdings, Inc - The document is a Quarterly Report on Form 10-Q for Ollie's Bargain Outlet Holdings, Inc. for the quarterly period ended October 28, 2023[2](index=2&type=chunk) - The registrant is classified as a **Large accelerated filer**[4](index=4&type=chunk) Common Stock Information | Metric | Value | | :--- | :--- | | Common Stock, $0.001 par value Trading Symbol | OLLI | | Exchange on which registered | The NASDAQ Stock Market LLC | | Shares outstanding as of December 1, 2023 | 61,592,272 | PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and notes for Ollie's Bargain Outlet Holdings, Inc [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's net sales, gross profit, operating income, net income, and EPS for the reported periods Condensed Consolidated Statements of Income (Thirteen Weeks Ended) | Metric | October 28, 2023 (in thousands) | October 29, 2022 (in thousands) | Change (%) | | :--------------------------------- | :------------------------------ | :------------------------------ | :--------- | | Net sales | $480,050 | $418,072 | 14.8% | | Gross profit | $194,111 | $164,676 | 17.9% | | Operating income | $39,069 | $29,532 | 32.3% | | Net income | $31,803 | $23,082 | 37.8% | | Basic EPS | $0.52 | $0.37 | 40.5% | | Diluted EPS | $0.51 | $0.37 | 37.8% | Condensed Consolidated Statements of Income (Thirty-nine Weeks Ended) | Metric | October 28, 2023 (in thousands) | October 29, 2022 (in thousands) | Change (%) | | :--------------------------------- | :------------------------------ | :------------------------------ | :--------- | | Net sales | $1,453,713 | $1,277,220 | 13.8% | | Gross profit | $569,366 | $449,611 | 26.6% | | Operating income | $130,145 | $63,222 | 105.9% | | Net income | $104,964 | $49,702 | 111.2% | | Basic EPS | $1.70 | $0.79 | 115.2% | | Diluted EPS | $1.69 | $0.79 | 113.9% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | Metric | October 28, 2023 | January 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | :--------------- | | Cash and cash equivalents | $159,555 | $210,596 | $182,104 | | Short-term investments | $104,477 | $60,165 | - | | Inventories | $532,370 | $470,534 | $523,728 | | Total current assets | $805,559 | $754,296 | $714,352 | | Property and equipment, net | $230,203 | $175,947 | $170,133 | | Total assets | $2,194,360 | $2,044,096 | $2,009,968 | | Total current liabilities | $289,103 | $259,285 | $252,193 | | Total liabilities | $753,986 | $682,027 | $691,846 | | Total stockholders' equity | $1,440,374 | $1,362,069 | $1,318,122 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in stockholders' equity, including net income, stock-based compensation, and share repurchases Total Stockholders' Equity (in thousands) | Period | October 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | | Thirteen weeks ended | $1,440,374 | $1,318,122 | | Thirty-nine weeks ended | $1,440,374 | $1,318,122 | - For the thirteen weeks ended October 28, 2023, **net income was $31.8 million**, **stock-based compensation expense was $3.0 million**, and **shares repurchased amounted to $(10.8) million**[14](index=14&type=chunk) - For the thirty-nine weeks ended October 28, 2023, **net income was $105.0 million**, **stock-based compensation expense was $9.0 million**, and **shares repurchased amounted to $(39.8) million**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities for the thirty-nine-week periods Condensed Consolidated Statements of Cash Flows (Thirty-nine Weeks Ended, in thousands) | Activity | October 28, 2023 | October 29, 2022 | Change (YoY) | | :--------------------------------- | :--------------- | :--------------- | :----------- | | Net cash provided by operating activities | $110,861 | $979 | +$109,882 | | Net cash used in investing activities | $(125,301) | $(38,626) | -$(86,675) | | Net cash used in financing activities | $(36,601) | $(27,226) | -$(9,375) | | Net decrease in cash and cash equivalents | $(51,041) | $(64,873) | +$13,832 | - Purchases of property and equipment increased from **$38.9 million in 2022 to $81.4 million in 2023**[16](index=16&type=chunk) - Purchases of short-term investments were **$206.8 million in 2023**, with maturities of **$162.5 million**[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures for the financial statements, covering accounting policies and financial commitments [(1) Basis of Presentation and Summary of Significant Accounting Policies](index=7&type=section&id=(1)%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Describes Ollie's business model, fiscal year, financial statement preparation basis, and key accounting policies, including fair value disclosures - Ollie's Bargain Outlet Holdings, Inc. buys overproduced, overstocked, and closeout merchandise, augmenting with directly sourced private label products[18](index=18&type=chunk) - As of October 28, 2023, the Company has grown to **505 retail locations in 30 states**[19](index=19&type=chunk) Short-term Investment Securities (as of October 28, 2023, in thousands) | Type | Amortized Cost | Fair Market Value | | :------------- | :------------- | :---------------- | | Treasury Bonds | $69,497 | $68,664 | | Municipal bonds | $34,980 | $34,558 | | **Total** | **$104,477** | **$103,222** | [(2) Net Sales](index=9&type=section&id=(2)%20Net%20Sales) Explains revenue recognition policies, including retail sales, loyalty program discounts, and gift card breakage, with deferred revenue reconciliations - Revenue is recognized when merchandise is sold and the customer takes possession, including redeemed discounts from the Ollie's Army loyalty program and gift card breakage[31](index=31&type=chunk) Ollie's Army Loyalty Program Liability (Thirty-nine Weeks Ended, in thousands) | Metric | October 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | | Beginning balance | $8,130 | $7,782 | | Revenue deferred | $11,171 | $10,775 | | Revenue recognized | $(9,865) | $(10,786) | | Ending balance | $9,436 | $7,771 | Gift Card Liability (Thirty-nine Weeks Ended, in thousands) | Metric | October 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | | Beginning balance | $2,527 | $2,291 | | Gift card issuances | $3,097 | $3,112 | | Gift card redemption and breakage | $(3,271) | $(3,214) | | Ending balance | $2,353 | $2,189 | [(3) Earnings per Common Share](index=10&type=section&id=(3)%20Earnings%20per%20Common%20Share) Details the calculation of basic and diluted earnings per common share, including the impact of stock options and restricted stock units Earnings per Common Share (in thousands, except per share amounts) | Metric | 13 Weeks Oct 28, 2023 | 13 Weeks Oct 29, 2022 | 39 Weeks Oct 28, 2023 | 39 Weeks Oct 29, 2022 | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net income | $31,803 | $23,082 | $104,964 | $49,702 | | Basic EPS | $0.52 | $0.37 | $1.70 | $0.79 | | Diluted EPS | $0.51 | $0.37 | $1.69 | $0.79 | | Weighted avg. common shares outstanding - Basic | 61,682 | 62,507 | 61,807 | 62,603 | | Weighted avg. common shares outstanding - Diluted | 62,068 | 62,751 | 62,110 | 62,810 | - Certain stock options and restricted stock units were excluded from the diluted EPS calculation because their effect would have been antidilutive[34](index=34&type=chunk)[35](index=35&type=chunk) [(4) Leases](index=10&type=section&id=(4)%20Leases) Explains lease accounting under ASC 842, including classification, right-of-use assets, lease liabilities, and maturity analysis - The Company accounts for leases under ASC 842, classifying them as operating or financing leases and recording right-of-use assets and lease liabilities[36](index=36&type=chunk) Operating Lease Liabilities Maturity (as of October 28, 2023, in thousands) | Period | Amount | | :--------------------------------- | :----- | | Remainder of 2023 | $21,213 | | 2024 | $108,250 | | 2025 | $89,975 | | 2026 | $85,204 | | 2027 | $73,050 | | Thereafter | $180,155 | | **Total undiscounted lease payments** | **$557,847** | | Less: Imputed interest | $(69,921) | | **Total lease obligations** | **$487,926** | - The weighted-average remaining lease term was **6.6 years** as of October 28, 2023, with a weighted-average discount rate of **3.8%**[41](index=41&type=chunk) [(5) Commitments and Contingencies](index=12&type=section&id=(5)%20Commitments%20and%20Contingencies) States the company is involved in routine legal matters, not expecting material adverse effects on its financial position or operations - The Company is involved in claims and legal actions that arise in the ordinary course of its business[42](index=42&type=chunk) - Management does not believe that an unfavorable decision of any current claims or legal actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources[42](index=42&type=chunk) [(6) Accrued Expenses and Other Current Liabilities](index=12&type=section&id=(6)%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Details accrued expenses and other current liabilities, noting an increase primarily due to compensation, deferred revenue, and income taxes Accrued Expenses and Other Current Liabilities (in thousands) | Category | October 28, 2023 | January 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | :--------------- | | Compensation and benefits | $18,359 | $14,751 | $16,047 | | Deferred revenue | $11,789 | $10,657 | $9,960 | | Insurance | $11,316 | $9,141 | $11,209 | | Sales and use taxes | $10,833 | $6,567 | $9,860 | | Advertising | $6,959 | $6,582 | $7,247 | | Real estate | $6,025 | $6,283 | $8,124 | | Freight | $2,885 | $2,641 | $3,585 | | Other | $19,452 | $20,337 | $20,917 | | **Total** | **$87,618** | **$76,959** | **$86,949** | [(7) Debt Obligations and Financing Arrangements](index=12&type=section&id=(7)%20Debt%20Obligations%20and%20Financing%20Arrangements) Details the $100.0 million revolving credit facility, amended to SOFR-based rates, with no outstanding borrowings and $91.8 million available - The Company has a five-year **$100.0 million revolving credit facility**, maturing on May 22, 2024[45](index=45&type=chunk) - The Credit Facility was amended on January 24, 2023, to replace LIBOR-based interest rates with SOFR-based rates[46](index=46&type=chunk) - As of October 28, 2023, there were **no outstanding borrowings** under the Revolving Credit Facility, with **$91.8 million of borrowing availability**[49](index=49&type=chunk) [(8) Income Taxes](index=13&type=section&id=(8)%20Income%20Taxes) Discusses effective tax rates, noting an increase primarily due to decreased discrete tax benefits from stock-based compensation and state tax changes Effective Tax Rates | Period | October 28, 2023 | October 29, 2022 | | :--------------------------------- | :--------------- | :--------------- | | Thirteen weeks ended | 26.1% | 24.1% | | Thirty-nine weeks ended | 25.1% | 22.5% | - The increase in effective tax rates was primarily due to a decrease in discrete tax benefits related to stock-based compensation and state tax rate changes[52](index=52&type=chunk)[53](index=53&type=chunk) [(9) Equity Incentive Plans](index=13&type=section&id=(9)%20Equity%20Incentive%20Plans) Describes equity incentive plans for stock options and RSUs, summarizing activity and related compensation expense for employees, directors, and consultants - The 2015 equity incentive plan allows for the issuance of up to **5,250,000 shares**, with **1,950,619 shares available for grant** as of October 28, 2023[56](index=56&type=chunk) Stock Option Activity (Thirty-nine Weeks Ended October 28, 2023) | Metric | Number of options | | :--------------------------------- | :---------------- | | Outstanding at January 28, 2023 | 1,209,251 | | Granted | 144,630 | | Exercised | (152,583) | | Outstanding at October 28, 2023 | 1,153,918 | | Exercisable at October 28, 2023 | 596,980 | Restricted Stock Unit (RSU) Activity (Thirty-nine Weeks Ended October 28, 2023) | Metric | Number of shares | | :--------------------------------- | :--------------- | | Non-vested balance at January 28, 2023 | 276,278 | | Granted | 202,909 | | Vested | (96,226) | | Non-vested balance at October 28, 2023 | 358,157 | - Stock-based compensation expense was **$3.0 million** for the thirteen weeks and **$9.0 million** for the thirty-nine weeks ended October 28, 2023[63](index=63&type=chunk) [(10) Common Stock](index=15&type=section&id=(10)%20Common%20Stock) Describes the common stock structure and share repurchase program, with $98.4 million remaining under authorization as of October 28, 2023 - The Company has authorized **500,000,000 shares of common stock** and **50,000,000 shares of preferred stock** (none issued)[65](index=65&type=chunk) - During the thirty-nine weeks ended October 28, 2023, the Company repurchased **634,733 shares of its common stock for $39.8 million**[67](index=67&type=chunk) - As of October 28, 2023, **$98.4 million remained** under the share repurchase authorization, which was set to expire on December 15, 2023[67](index=67&type=chunk) [(11) Transactions with Affiliated and Related Parties](index=16&type=section&id=(11)%20Transactions%20with%20Affiliated%20and%20Related%20Parties) Discloses inventory purchases from a Hillman Solutions, Inc. subsidiary, where Ollie's CEO is a board member - The Company purchased inventory of **$1.2 million** from a subsidiary of Hillman Solutions, Inc. during the thirty-nine weeks ended October 28, 2023[70](index=70&type=chunk) - John Swygert, President and Chief Executive Officer of Ollie's, is a member of Hillman Solutions, Inc.'s Board of Directors[70](index=70&type=chunk) [(12) Subsequent Events](index=16&type=section&id=(12)%20Subsequent%20Events) Reports the Board authorized an extension to the share repurchase program, moving its expiration from December 15, 2023, to March 31, 2026 - On November 30, 2023, the Board of Directors authorized an extension to the existing share repurchase program, extending its expiration from December 15, 2023, to March 31, 2026[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results, covering business overview, growth strategies, key performance indicators, and financial analysis [Overview](index=18&type=section&id=Overview) Describes Ollie's as a fast-growing, extreme value retailer offering a broad selection of brand name merchandise at reduced prices - Ollie's is a highly differentiated and fast-growing, extreme value retailer of brand name merchandise at drastically reduced prices[77](index=77&type=chunk) - The Company offers a broad selection of brand name products including housewares, bed and bath, food, floor coverings, health and beauty aids, books and stationery, toys, and electronics[77](index=77&type=chunk) [Our Growth Strategy](index=18&type=section&id=Our%20Growth%20Strategy) Outlines the company's expansion plans, including new store openings and distribution center development, to support future growth - The Company has expanded to **505 stores** located in 30 states as of October 28, 2023, opening its **500th store in Iowa City, IA**[78](index=78&type=chunk) - The Company recently completed the expansion of its York, PA distribution center and acquired land in Princeton, IL, for a fourth distribution center, expected to be occupied in the first half of fiscal 2024[79](index=79&type=chunk) - Distribution capabilities are expected to support between **700 and 750 stores** with the expanded York, PA DC and the addition of the fourth DC[79](index=79&type=chunk) - New store model targets **25,000 to 35,000 square feet**, an average initial cash investment of approximately **$1.0 million**, and target new store sales of approximately **$4.0 million** in their first full year[80](index=80&type=chunk) [How We Assess the Performance of Our Business and Key Line Items](index=19&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business%20and%20Key%20Line%20Items) Identifies the key financial and operational metrics used by management to evaluate the company's business performance - Key measures used to assess business performance include number of new stores, net sales, comparable store sales, gross profit and gross margin, SG&A, pre-opening expenses, operating income, EBITDA, and Adjusted EBITDA[85](index=85&type=chunk) - Comparable store sales measure performance of a store beginning on the first day of the sixteenth full fiscal month following the store's opening[91](index=91&type=chunk) - Adjusted EBITDA is defined as net income before net interest income or expense, depreciation and amortization expenses, and income taxes, further adjusted for non-cash stock-based compensation expense and gains on insurance settlements[104](index=104&type=chunk) [Factors Affecting the Comparability of our Results of Operations](index=22&type=section&id=Factors%20Affecting%20the%20Comparability%20of%20our%20Results%20of%20Operations) Discusses external and internal factors, such as seasonality and store openings, influencing the comparability of financial results Store Openings and Closings | Period | New Stores Opened | Stores Closed | | :--------------------------------- | :---------------- | :------------ | | Third quarter of fiscal 2023 | 23 | — | | Third quarter of fiscal 2022 | 15 | (1) | | Thirty-nine weeks ended October 28, 2023 | 38 | (1) | | Thirty-nine weeks ended October 29, 2022 | 35 | (3) | - The business is seasonal, with demand generally highest in the fourth fiscal quarter due to the holiday sales season, leading to peak inventory levels, accounts payable, and accrued expenses in the third and fourth fiscal quarters[108](index=108&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including net sales, gross profit, operating income, and net income, for the reported periods Key Financial Performance (Q3 Fiscal 2023 vs. Q3 Fiscal 2022) | Metric | October 28, 2023 | October 29, 2022 | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Net Sales | $480.1M | $418.1M | 14.8% | | Comparable Store Sales Change | 7.0% | 1.9% | +510 bps | | Gross Profit | $194.1M | $164.7M | 17.9% | | Gross Margin | 40.4% | 39.4% | +100 bps | | SG&A (% of Net Sales) | 29.5% | 29.9% | -40 bps | | Operating Income | $39.1M | $29.5M | 32.3% | | Net Income | $31.8M | $23.1M | 37.8% | | Adjusted EBITDA | $51.1M | $39.5M | 29.5% | Key Financial Performance (YTD Fiscal 2023 vs. YTD Fiscal 2022) | Metric | October 28, 2023 | October 29, 2022 | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Net Sales | $1.454B | $1.277B | 13.8% | | Comparable Store Sales Change | 6.5% | (5.4)% | +1190 bps | | Gross Profit | $569.4M | $449.6M | 26.6% | | Gross Margin | 39.2% | 35.2% | +400 bps | | SG&A (% of Net Sales) | 28.0% | 28.2% | -20 bps | | Operating Income | $130.1M | $63.2M | 105.9% | | Net Income | $105.0M | $49.7M | 111.2% | | Adjusted EBITDA | $164.6M | $91.7M | 79.5% | - The increase in gross margin was primarily due to **favorable supply chain costs and higher merchandise margins**, partially offset by higher shrink[117](index=117&type=chunk)[126](index=126&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Examines the company's sources of liquidity, capital expenditures, and share repurchase activities to support its operations and growth - Primary sources of liquidity are **net cash flows from operating activities** and available borrowings under the **$100.0 million Revolving Credit Facility**[134](index=134&type=chunk) - As of October 28, 2023, the Company had **$91.8 million available to borrow** under its Revolving Credit Facility and **$264.0 million of cash and cash equivalents and short-term investments** on hand[134](index=134&type=chunk) - Capital expenditures for the thirty-nine weeks ended October 28, 2023, were **$81.4 million**, primarily for new store openings, store remodels, distribution centers (including the fourth DC in Princeton, IL), and IT investments[134](index=134&type=chunk) - The Company repurchased **634,733 shares of common stock for $39.8 million** during the thirty-nine weeks ended October 28, 2023, with **$98.4 million remaining** under its share repurchase authorization[140](index=140&type=chunk) [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms that there have been no significant changes to the company's critical accounting policies and estimates since the last annual report - There have been **no significant changes** in the Company's critical accounting policies and estimates as disclosed in its Annual Report[148](index=148&type=chunk) [Recently Issued Accounting Pronouncements](index=29&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) States that no recently issued accounting pronouncements are currently applicable to the company's financial reporting - No recently issued accounting pronouncements are applicable[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Addresses market risks, including interest rate risk and inflation, noting no material changes from the Annual Report and historically immaterial inflation effects - The Company is subject to interest rate risk in connection with borrowings under its Revolving Credit Facility, which bears interest at variable rates, but had **no outstanding variable rate debt** as of October 28, 2023[150](index=150&type=chunk) - There have been **no material changes** in the market risks described in the Annual Report[150](index=150&type=chunk) - The effects of inflation on the Company's historical results of operations and financial condition have been **immaterial**, though future impacts cannot be assured[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of October 28, 2023, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were **effective** at a reasonable assurance level as of October 28, 2023[152](index=152&type=chunk) - There were **no changes to internal control over financial reporting** during the third quarter of fiscal 2023 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[153](index=153&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) States the company is involved in routine legal claims, not expecting material adverse effects on its financial position or operations - The Company may be involved in claims and legal actions that arise in the ordinary course of its business[154](index=154&type=chunk) - Management does not believe that an unfavorable decision of any current claims or legal actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources[154](index=154&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) Refers to the detailed description of risk factors in the company's Annual Report and states that there have been no material changes to these risks - There have been **no material changes** from the risk factors previously disclosed in the Company's Annual Report[155](index=155&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Provides information on common stock repurchases during the thirteen weeks ended October 28, 2023, under the publicly announced program Share Repurchases (Thirteen Weeks Ended October 28, 2023) | Period | Total Shares Repurchased | Average Price Paid per Share | | :--------------------------------- | :----------------------- | :--------------------------- | | July 30, 2023 through August 26, 2023 | — | $0.00 | | August 27, 2023 through September 30, 2023 | 57,701 | $76.72 | | October 1, 2023 through October 28, 2023 | 84,752 | $74.25 | | **Total** | **142,453** | | - As of October 28, 2023, **$98.4 million remained** under the share repurchase authorization[158](index=158&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) Discloses that several executives entered into or modified Rule 10b5-1 trading plans for common stock sales during the thirteen weeks ended October 28, 2023 - During the thirteen weeks ended October 28, 2023, several executives entered into or modified written Rule 10b5-1 trading plans for the purchase or sale of the Company's securities[159](index=159&type=chunk)[161](index=161&type=chunk) - These plans are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading on the basis of material nonpublic information[159](index=159&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and Inline XBRL documents - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) and 18 U.S.C. Section 1350[164](index=164&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Documents are submitted electronically with the report[164](index=164&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) Confirms the official signing of the report by the company's Senior Vice President and Chief Financial Officer - The report was signed on December 6, 2023, by Robert Helm, Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) of Ollie's Bargain Outlet Holdings, Inc[169](index=169&type=chunk)

Financial Data and Key Metrics Changes - Comparable store sales increased by 7% in Q3, net sales rose by 14.8% to $480 million, and adjusted EBITDA increased by 29.5% to $51 million [39][60] - Adjusted net income grew by 37.4% to $32 million, with adjusted earnings per share at $0.51 compared to $0.37 last year [62] - Gross margin improved by 100 basis points to 40.4%, primarily due to favorable supply chain costs [61] Business Line Data and Key Metrics Changes - Over 60% of product categories comped positively, with top performers including candy, sporting goods, housewares, food, and toys [40][54] - The company opened a record 23 new stores in the quarter, bringing the total to 505 stores across 30 states [47][54] Market Data and Key Metrics Changes - The company noted strong deal flow and consumer demand for branded merchandise at reduced prices, indicating a favorable market environment for closeout opportunities [41][42] - Membership in Ollie's Army increased by almost 5% year-over-year, accounting for over 80% of sales in the quarter [44][53] Company Strategy and Development Direction - The company aims for double-digit sales growth, a 40% gross margin, and double-digit EBITDA growth in the long term [45] - Continued investment in supply chain improvements and store growth is a key focus, with plans to open additional distribution centers [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business trends and raised sales and earnings guidance for the full year based on strong Q3 results [39][64] - There is some uncertainty in the marketplace regarding consumer demand, but management believes their value proposition is resonating well with customers [9][60] Other Important Information - SG&A expenses as a percentage of net sales leveraged 40 basis points to 29.5%, driven by the leverage of fixed expenses [54] - The company plans to open seven new stores in Q4, with a comp sales expectation of approximately 3% [65] Q&A Session Summary Question: Promotional cadence in Q3 and its impact - Management confirmed that the ad shift and promotional strategies met expectations, with an anticipated 100 basis points impact into Q4 [4][5] Question: Same-store sales expectations for 2024 - Management maintained a long-term guidance of 1% to 2% comp sales growth, despite challenging comparisons from previous years [14][16] Question: Improvements made to capitalize on the value-seeking environment - Management highlighted ongoing investments in supply chain and store operations to enhance productivity and execution [30][31] Question: Marketing efforts and younger customer demographics - The company has significantly increased its digital marketing spend, focusing on social media and influencer partnerships to attract younger customers [83] Question: Labor market outlook for 2024 - Management noted improved stability in turnover rates and anticipated mid-single-digit wage increases for the upcoming year [107][108] Question: Deal flow and vendor relationships - Management indicated that they continue to be selective with vendor deals, maintaining a strong deal flow across various categories [100][102]

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 July 29, 2023 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 Emp ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Ollie's Bargain Outlet Holdings, Inc. and its subsidiaries, including statements of income, balance sheets, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial line items for the thirteen weeks ended April 29, 2023, and April 30, 2022 [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :---------------------------------- | :---------------------------- | :---------------------------- | | Net sales | $459,154 | $406,666 | | Cost of sales | $280,583 | $265,341 | | Gross profit | $178,571 | $141,325 | | Selling, general, and administrative expenses | $130,268 | $116,273 | | Depreciation and amortization expenses | $6,483 | $5,247 | | Pre-opening expenses | $3,281 | $2,660 | | Operating income | $38,539 | $17,145 | | Interest (income) expense, net | $(2,675) | $109 | | Income before income taxes | $41,214 | $17,036 | | Income tax expense | $10,234 | $4,513 | | Net income | $30,980 | $12,523 | | Earnings per common share: Basic | $0.50 | $0.20 | | Earnings per common share: Diluted | $0.50 | $0.20 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (As of): | Metric | April 29, 2023 (in thousands) | January 28, 2023 (in thousands) | April 30, 2022 (in thousands) | | :---------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Cash and cash equivalents | $134,959 | $210,596 | $205,463 | | Short-term investments | $140,530 | $60,165 | - | | Inventories | $497,988 | $470,534 | $517,033 | | Total current assets | $783,268 | $754,296 | $731,356 | | Total assets | $2,091,038 | $2,044,096 | $1,989,830 | | Total current liabilities | $278,213 | $259,285 | $258,154 | | Total liabilities | $707,082 | $682,027 | $687,395 | | Total stockholders' equity | $1,383,956 | $1,362,069 | $1,302,435 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :---------------------------------- | :---------------------------- | :---------------------------- | | Balance as of January 28, 2023 / January 29, 2022 | $1,362,069 | $1,287,710 | | Stock-based compensation expense | $2,863 | $2,388 | | Proceeds from stock options exercised | $1,592 | $298 | | Common shares withheld for taxes | $(1,268) | $(484) | | Shares repurchased | $(12,280) | - | | Net income | $30,980 | $12,523 | | Balance as of April 29, 2023 / April 30, 2022 | $1,383,956 | $1,302,435 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :---------------------------------- | :---------------------------- | :---------------------------- | | Net cash provided by (used in) operating activities | $35,872 | $(31,516) | | Net cash used in investing activities | $(99,311) | $(9,617) | | Net cash used in financing activities | $(12,198) | $(381) | | Net decrease in cash and cash equivalents | $(75,637) | $(41,514) | | Cash and cash equivalents, end of the period | $134,959 | $205,463 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [(1) Basis of Presentation and Summary of Significant Accounting Policies](index=7&type=section&id=(1)%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) - Ollie's Bargain Outlet Holdings, Inc. operates as an extreme value retailer, primarily buying overproduced, overstocked, and closeout merchandise, supplemented by private label products[18](index=18&type=chunk) - As of April 29, 2023, the Company had grown to **476 retail locations** across **29 states**[19](index=19&type=chunk) - The Company follows a 52/53-week fiscal year, ending on the Saturday nearest to January 31st[20](index=20&type=chunk) - The Company is comprised of one operating segment for disclosure purposes[23](index=23&type=chunk) Short-term Investment Securities (As of April 29, 2023): | Type | Amortized Cost (in thousands) | Unrealized Losses (in thousands) | Fair Market Value (in thousands) | | :---------------- | :---------------------------- | :------------------------------- | :------------------------------- | | Treasury Bonds | $101,072 | $(935) | $100,137 | | Municipal bonds | $39,458 | $(164) | $39,294 | | **Total** | **$140,530** | **$(1,099)** | **$139,431** | [(2) Net Sales](index=9&type=section&id=(2)%20Net%20Sales) - Revenue recognition for retail sales occurs when merchandise is sold and the customer takes possession; Net sales also include revenue from redeemed Ollie's Army loyalty program discounts and gift card breakage[29](index=29&type=chunk) Ollie's Army Loyalty Program Liability (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :---------------- | :---------------------------- | :---------------------------- | | Beginning balance | $8,130 | $7,782 | | Revenue deferred | $3,326 | $3,248 | | Revenue recognized | $(2,687) | $(3,037) | | Ending balance | $8,769 | $7,993 | Gift Card Liability (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Beginning balance | $2,527 | $2,291 | | Gift card issuances | $900 | $1,064 | | Gift card redemption and breakage | $(1,098) | $(1,232) | | Ending balance | $2,329 | $2,123 | [(3) Earnings per Common Share](index=10&type=section&id=(3)%20Earnings%20per%20Common%20Share) Earnings per Common Share (Thirteen weeks ended): | Metric | April 29, 2023 | April 30, 2022 | | :------------------------------------------ | :------------- | :------------- | | Net income (in thousands) | $30,980 | $12,523 | | Weighted average common shares outstanding – Basic (in thousands) | 61,970 | 62,869 | | Weighted average common shares outstanding – Diluted (in thousands) | 62,207 | 63,011 | | Earnings per common share – Basic | $0.50 | $0.20 | | Earnings per common share – Diluted | $0.50 | $0.20 | - The effect of **841,519 stock options** and **26,241 non-vested restricted stock units** for the thirteen weeks ended April 29, 2023, were excluded from diluted EPS calculation as they were antidilutive[32](index=32&type=chunk)[33](index=33&type=chunk) [(4) Leases](index=10&type=section&id=(4)%20Leases) - The Company accounts for its leases under ASC 842, classifying them as operating or financing leases and recording them as right-of-use assets and lease liabilities[34](index=34&type=chunk) - Ollie's generally leases stores, offices, and distribution facilities under operating leases expiring through 2035, with renewal options typically not considered in the lease term[37](index=37&type=chunk) Operating Lease Liabilities Maturity (As of April 29, 2023): | Fiscal Year | Amount (in thousands) | | :---------------- | :-------------------- | | Remainder of 2023 | $70,605 | | 2024 | $94,589 | | 2025 | $76,743 | | 2026 | $70,595 | | 2027 | $58,577 | | Thereafter | $128,047 | | **Total undiscounted lease payments** | **$499,156** | | Less: Imputed interest | $(52,837) | | **Total lease obligations** | **$446,319** | | Less: Current obligations under leases | $(89,528) | | **Long-term lease obligations** | **$356,791** | Operating Lease Information (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :------------------------------------------ | :---------------------------- | :---------------------------- | | Cash paid for operating leases | $25,344 | $22,919 | | Operating lease cost | $24,888 | $22,832 | | Weighted-average remaining lease term | **6.3 years** | **6.6 years** | | Weighted-average discount rate | **3.5%** | **3.4%** | [(5) Commitments and Contingencies](index=12&type=section&id=(5)%20Commitments%20and%20Contingencies) - In March 2023, the Company acquired land for its fourth distribution center in Princeton, IL, with an expected total cost of **$80 to $85 million** and occupancy anticipated in the **second quarter of fiscal 2024**[41](index=41&type=chunk) - The Company does not believe that any current claims or legal actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources[42](index=42&type=chunk) [(6) Accrued Expenses and Other Current Liabilities](index=12&type=section&id=(6)%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities (As of): | Category | April 29, 2023 (in thousands) | January 28, 2023 (in thousands) | April 30, 2022 (in thousands) | | :----------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Compensation and benefits | $11,307 | $14,751 | $14,262 | | Deferred revenue | $11,098 | $10,657 | $10,116 | | Insurance | $9,517 | $9,141 | $9,680 | | Sales and use taxes | $8,694 | $6,567 | $7,492 | | Advertising | $7,004 | $6,582 | $2,944 | | Real estate | $6,223 | $6,283 | $7,167 | | Freight | $2,035 | $2,641 | $3,554 | | Other | $20,258 | $20,337 | $16,284 | | **Total** | **$76,136** | **$76,959** | **$71,499** | [(7) Debt Obligations and Financing Arrangements](index=13&type=section&id=(7)%20Debt%20Obligations%20and%20Financing%20Arrangements) - The Company has a five-year **$100.0 million** revolving credit facility, maturing on May 22, 2024[46](index=46&type=chunk) - On January 24, 2023, the Credit Facility was amended to replace LIBOR-based interest rates with SOFR-based interest rates[47](index=47&type=chunk) - As of April 29, 2023, there were no outstanding borrowings under the Revolving Credit Facility, with **$91.6 million** of borrowing availability[49](index=49&type=chunk) - The Company was in compliance with all terms of the Credit Facility during the thirteen weeks ended April 29, 2023[50](index=50&type=chunk) [(8) Income Taxes](index=13&type=section&id=(8)%20Income%20Taxes) Income Tax Expense and Effective Rate (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :-------------------- | :---------------------------- | :---------------------------- | | Income tax expense | $10,234 | $4,513 | | Effective income tax rate | **24.8%** | **26.5%** | | Change in effective rate | **-1.7 percentage points** | | - The decrease in the effective income tax rate for Q1 2023 was primarily driven by the impact of discrete items recognized, mainly stock-based compensation[52](index=52&type=chunk) [(9) Equity Incentive Plans](index=14&type=section&id=(9)%20Equity%20Incentive%20Plans) - The 2015 equity incentive plan allows for the issuance of up to **5,250,000 shares**, with **1,891,024 shares** available for grant as of April 29, 2023[57](index=57&type=chunk) Stock Option Activity (Thirteen weeks ended April 29, 2023): | Metric | Number of options | Weighted average exercise price | | :------------------------ | :---------------- | :------------------------------ | | Outstanding at January 28, 2023 | 1,209,251 | $53.92 | | Granted | 143,668 | $57.98 | | Forfeited | (5,791) | $60.21 | | Exercised | (42,366) | $37.58 | | Outstanding at April 29, 2023 | 1,304,762 | $54.87 | | Exercisable at April 29, 2023 | 706,292 | $53.93 | Restricted Stock Unit (RSU) Activity (Thirteen weeks ended April 29, 2023): | Metric | Number of shares | Weighted average grant date fair value | | :------------------------------ | :--------------- | :------------------------------------- | | Non-vested balance at January 28, 2023 | 276,278 | $50.32 | | Granted | 199,430 | $57.98 | | Forfeited | (2,357) | $51.87 | | Vested | (85,981) | $51.72 | | Non-vested balance at April 29, 2023 | 387,370 | $53.94 | - Stock-based compensation expense was **$2.9 million** for Q1 2023, up from **$2.4 million** for Q1 2022[62](index=62&type=chunk) - As of April 29, 2023, there was **$33.2 million** of total unrecognized compensation cost related to non-vested stock-based compensation, expected to be recognized over a weighted average period of **3 years**[63](index=63&type=chunk) [(10) Common Stock](index=16&type=section&id=(10)%20Common%20Stock) - The Company repurchased **215,522 shares** of its common stock for **$12.3 million** during the thirteen weeks ended April 29, 2023[66](index=66&type=chunk) - As of April 29, 2023, **$125.9 million** remained under the Company's share repurchase authorization[66](index=66&type=chunk) [(11) Transactions with Affiliated and Related Parties](index=16&type=section&id=(11)%20Transactions%20with%20Affiliated%20and%20Related%20Parties) - During Q1 2023, the Company purchased **$0.5 million** in inventory from a subsidiary of Hillman Solutions, Inc., where Ollie's CEO is a board member[67](index=67&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Ollie's financial condition and operational results for the first quarter of fiscal 2023 compared to the prior year; It covers the company's business overview, growth strategies, key performance indicators, factors affecting comparability, detailed results of operations, and an analysis of liquidity and capital resources [Overview](index=18&type=section&id=Overview) - Ollie's is a highly differentiated and fast-growing, extreme value retailer offering brand name merchandise at drastically reduced prices, known for its '**Good Stuff Cheap**' assortment[72](index=72&type=chunk) - The Company provides a unique, fun, and engaging 'treasure hunt' shopping experience with witty in-store signage and advertising[72](index=72&type=chunk) [Our Growth Strategy](index=18&type=section&id=Our%20Growth%20Strategy) - Ollie's has grown organically to **476 stores** in **29 states** as of April 29, 2023, by backfilling existing markets and expanding into new contiguous states[73](index=73&type=chunk) - The Company's distribution capabilities, including an expanded York, PA DC and a new fourth DC in Princeton, IL (expected Q2 FY2024), are projected to support **over 700 stores**[74](index=74&type=chunk) - Key growth strategies include growing the store base, increasing offerings of great bargains, and leveraging/expanding the Ollie's Army loyalty program[76](index=76&type=chunk) - The new store model targets 25,000 to 35,000 square feet, an average initial cash investment of **approximately $1.0 million**, and target sales of **approximately $4.0 million** in their first full year[75](index=75&type=chunk) [How We Assess the Performance of Our Business and Key Line Items](index=19&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business%20and%20Key%20Line%20Items) - Key measures used to assess business performance include number of new stores, net sales, comparable store sales, gross profit and gross margin, SG&A, pre-opening expenses, operating income, EBITDA, and Adjusted EBITDA[80](index=80&type=chunk) [Number of New Stores](index=19&type=section&id=Number%20of%20New%20Stores) - New store growth is the primary driver of sales growth, with initial lease terms typically around **seven years**[82](index=82&type=chunk) [Net Sales](index=19&type=section&id=Net%20Sales) - Net sales include retail sales, redeemed Ollie's Army loyalty program discounts, and gift card breakage, with growth primarily driven by store base expansion and increased access to brand name merchandise[83](index=83&type=chunk) - The Company believes its extreme value offerings make it less impacted by economic cycles and declines in general consumer spending habits[84](index=84&type=chunk) [Comparable Store Sales](index=20&type=section&id=Comparable%20Store%20Sales) - Comparable store sales measure performance for stores open since the first day of the sixteenth full fiscal month following their opening[85](index=85&type=chunk) - Stores are included in comparable store sales even if remodeled, temporarily closed for five or fewer days, relocated within trade areas, or expanded without significant size change[86](index=86&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin) - Gross profit is net sales less cost of sales, with gross margin indicating selling efficiency, influenced by product mix, merchandise availability, and a disciplined buying approach[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Selling, General, and Administrative Expenses](index=21&type=section&id=Selling%2C%20General%2C%20and%20Administrative%20Expenses) - SG&A includes payroll, benefits, marketing, occupancy, and corporate expenses, which generally increase with store growth but are managed to maintain strict discipline as a percentage of net sales[93](index=93&type=chunk) [Depreciation and Amortization Expenses](index=21&type=section&id=Depreciation%20and%20Amortization%20Expenses) - Depreciation and amortization are computed using the straight-line method, with distribution center depreciation included in cost of sales[94](index=94&type=chunk) [Pre-Opening Expenses](index=21&type=section&id=Pre-Opening%20Expenses) - Pre-opening expenses for new stores and distribution centers, as well as store remodel and closing costs, are expensed as incurred[95](index=95&type=chunk) [Operating Income](index=21&type=section&id=Operating%20Income) - Operating income, calculated as gross profit less SG&A, depreciation, and pre-opening expenses, serves as an indicator of business productivity and expense management[96](index=96&type=chunk) [EBITDA and Adjusted EBITDA](index=22&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) - EBITDA and Adjusted EBITDA are non-GAAP measures used by management and investors to evaluate financial performance, business strategies, and for peer comparison, by excluding certain non-core or non-cash items[97](index=97&type=chunk)[98](index=98&type=chunk) - EBITDA is defined as net income before net interest income or expense, depreciation and amortization expenses, and income taxes[98](index=98&type=chunk) - Adjusted EBITDA further adjusts EBITDA for non-cash stock-based compensation expense and gains on insurance settlements[98](index=98&type=chunk) [Factors Affecting the Comparability of our Results of Operations](index=22&type=section&id=Factors%20Affecting%20the%20Comparability%20of%20our%20Results%20of%20Operations) [Historical Results](index=22&type=section&id=Historical%20Results) - Historical results are not necessarily indicative of future performance[100](index=100&type=chunk) [Store Openings and Closings](index=22&type=section&id=Store%20Openings%20and%20Closings) - In Q1 fiscal 2023, the Company opened **9 new stores** and closed **1**, incurring **$2.1 million** in associated expenses[101](index=101&type=chunk) - In Q1 fiscal 2022, the Company opened **9 new stores** and closed **1** (due to relocation), incurring **$2.7 million** in associated expenses[101](index=101&type=chunk) [Seasonality](index=22&type=section&id=Seasonality) - The business is seasonal, with demand generally highest in the fourth fiscal quarter due to the holiday sales season, leading to fluctuations in inventory and working capital[102](index=102&type=chunk) - Despite seasonality, the Company believes its extreme value offerings make it less impacted by economic cycles[102](index=102&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Key Financial Performance (Thirteen weeks ended): | Metric | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | YoY Change (in thousands) | YoY % Change | | :---------------------------------- | :---------------------------- | :---------------------------- | :------------------------ | :----------- | | Net sales | $459,154 | $406,666 | $52,488 | **12.9%** | | Gross profit | $178,571 | $141,325 | $37,246 | **26.4%** | | Operating income | $38,539 | $17,145 | $21,394 | **124.8%** | | Net income | $30,980 | $12,523 | $18,457 | **147.4%** | | Adjusted EBITDA | $49,476 | $26,241 | $23,235 | **88.5%** | | Comparable stores sales change | **4.5%** | (**17.3%)** | **21.8 percentage points** | | [First Quarter of Fiscal 2023 Compared to First Quarter of Fiscal 2022](index=24&type=section&id=First%20Quarter%20of%20Fiscal%202023%20Compared%20to%20First%20Quarter%20of%20Fiscal%202022) [Net Sales](index=24&type=section&id=Net%20Sales) - Net sales increased by **$52.5 million**, or **12.9%**, to **$459.2 million** in Q1 fiscal 2023, driven by an **$18.0 million** increase in comparable store sales and a **$34.5 million** increase from non-comparable (new) stores[109](index=109&type=chunk) [Comparable store sales](index=24&type=section&id=Comparable%20store%20sales) - Comparable store sales increased **4.5% in Q1 fiscal 2023**, a significant improvement from a **17.3% decrease** in Q1 fiscal 2022, primarily due to an increase in the number of transactions[110](index=110&type=chunk) - Increases in food, candy, health and beauty aids, lawn & garden, and flooring departments were partially offset by declines in certain home-related categories[110](index=110&type=chunk) [Gross Profit and Gross Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Margin) - Gross profit increased to **$178.6 million** in Q1 fiscal 2023 from **$141.3 million** in Q1 fiscal 2022[111](index=111&type=chunk) - Gross margin increased by **410 basis points** to **38.9%** in Q1 fiscal 2023, primarily due to favorable supply chain costs, partially offset by lower merchandise margin related to shrink and a higher mix of consumables[111](index=111&type=chunk) [Selling, General, and Administrative Expenses](index=24&type=section&id=Selling%2C%20General%2C%20and%20Administrative%20Expenses) - SG&A increased by **$14.0 million**, or **12.0%**, to **$130.3 million** in Q1 fiscal 2023, mainly due to higher selling expenses from new store openings and incentive compensation[112](index=112&type=chunk) - As a percentage of net sales, SG&A decreased to **28.4%** in Q1 fiscal 2023 from **28.6%** in Q1 fiscal 2022, primarily due to leverage of fixed expenses on increased comparable store sales[112](index=112&type=chunk) [Pre-Opening Expenses](index=24&type=section&id=Pre-Opening%20Expenses) - Pre-opening expenses increased to **$3.3 million** in Q1 fiscal 2023 from **$2.7 million** in Q1 fiscal 2022, primarily due to incremental investments in the store remodel program[113](index=113&type=chunk) - As a percentage of net sales, pre-opening expenses remained flat at **0.7%** in both periods[113](index=113&type=chunk) [Interest (Income) Expense, Net](index=25&type=section&id=Interest%20(Income)%20Expense%2C%20Net) - The Company reported **net interest income of $2.7 million** in Q1 fiscal 2023, a significant improvement from **net interest expense of $0.1 million** in Q1 fiscal 2022, driven by favorable interest rates and higher average cash and short-term investment balances[114](index=114&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) - Income tax expense increased to **$10.2 million** in Q1 fiscal 2023 from **$4.5 million** in Q1 fiscal 2022[115](index=115&type=chunk) - The effective tax rate decreased to **24.8%** in Q1 fiscal 2023 from **26.5%** in Q1 fiscal 2022, primarily due to an increase in excess tax benefits related to stock-based compensation[115](index=115&type=chunk) [Net Income](index=25&type=section&id=Net%20Income) - Net income increased by **$18.5 million**, or **147.4%**, to **$31.0 million** in Q1 fiscal 2023[116](index=116&type=chunk) [Adjusted EBITDA](index=25&type=section&id=Adjusted%20EBITDA) - Adjusted EBITDA increased by **$23.3 million**, or **88.5%**, to **$49.5 million** in Q1 fiscal 2023[117](index=117&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) [Overview](index=25&type=section&id=Overview) - Primary liquidity sources are net cash flows from operating activities and available borrowings under the **$100.0 million** Revolving Credit Facility[118](index=118&type=chunk) - As of April 29, 2023, the Company had **$91.6 million** available under its Revolving Credit Facility and **$275.5 million** in cash and short-term investments[118](index=118&type=chunk) - Capital expenditures were **$19.0 million** in Q1 fiscal 2023, primarily for new store openings, store resets, distribution centers, and IT investments[118](index=118&type=chunk) - The Company expects to open **approximately 45 stores** during fiscal 2023 and believes its current liquidity is adequate to finance planned capital expenditures and working capital for the next 12 months[118](index=118&type=chunk)[122](index=122&type=chunk) [Share Repurchase Program](index=26&type=section&id=Share%20Repurchase%20Program) - The Board authorized an additional **$200.0 million** for share repurchases on November 30, 2021, expiring on December 15, 2023[123](index=123&type=chunk) - During Q1 fiscal 2023, the Company repurchased **215,522 shares** for **$12.3 million**, with **$125.9 million** remaining under authorization as of April 29, 2023[124](index=124&type=chunk) [Summary of Cash Flows](index=26&type=section&id=Summary%20of%20Cash%20Flows) Summary of Cash Flows (Thirteen weeks ended): | Activity | April 29, 2023 (in thousands) | April 30, 2022 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Net cash provided by (used in) operating activities | $35,872 | $(31,516) | | Net cash used in investing activities | $(99,311) | $(9,617) | | Net cash used in financing activities | $(12,198) | $(381) | | Net decrease in cash and cash equivalents | $(75,637) | $(41,514) | [Cash Provided by Operating Activities](index=27&type=section&id=Cash%20Provided%20by%20Operating%20Activities) - Net cash provided by operating activities increased to **$35.8 million** in Q1 fiscal 2023 from net cash used of **$31.5 million** in Q1 fiscal 2022, primarily due to decreased working capital needs and higher net income[126](index=126&type=chunk) [Cash Used in Investing Activities](index=27&type=section&id=Cash%20Used%20in%20Investing%20Activities) - Net cash used in investing activities increased significantly to **$99.3 million** in Q1 fiscal 2023 from **$9.6 million** in Q1 fiscal 2022, mainly due to **$85.4 million** in purchases of short-term investments and increased capital expenditures[127](index=127&type=chunk) [Cash Used in Financing Activities](index=27&type=section&id=Cash%20Used%20in%20Financing%20Activities) - Net cash used in financing activities increased to **$12.2 million** in Q1 fiscal 2023 from **$0.4 million** in Q1 fiscal 2022, primarily due to **$12.3 million** in share repurchases in the current quarter[128](index=128&type=chunk) [Contractual Obligations](index=27&type=section&id=Contractual%20Obligations) - There have been no material changes to contractual obligations as disclosed in the Annual Report, other than those occurring in the ordinary course of business[129](index=129&type=chunk) [Off-Balance Sheet Arrangements](index=27&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company does not have any material off-balance sheet arrangements that would affect its financial condition or results of operations[130](index=130&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no significant changes in the Company's critical accounting policies and estimates[131](index=131&type=chunk) [Recently Issued Accounting Pronouncements](index=27&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - No recently issued accounting pronouncements are applicable to the Company[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risks, specifically interest rate fluctuations and the potential impact of inflation, noting no material changes from previous disclosures in the Annual Report [Interest Rate Risk](index=27&type=section&id=Interest%20Rate%20Risk) - The Company is subject to interest rate risk from its variable-rate Revolving Credit Facility, but had no outstanding variable rate debt as of April 29, 2023[133](index=133&type=chunk) - There were no material changes in market risks from the disclosures in the Annual Report[133](index=133&type=chunk) [Impact of Inflation](index=28&type=section&id=Impact%20of%20Inflation) - The effects of inflation on the Company's historical results of operations and financial condition are believed to have been immaterial[134](index=134&type=chunk) - The Company cannot assure that its future results will not be materially impacted by inflation[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details management's evaluation of the effectiveness of the company's disclosure controls and procedures, concluding they are effective, and confirms no material changes to internal control over financial reporting during the period [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of the end of the reporting period[135](index=135&type=chunk) - Disclosure controls and procedures are designed to provide reasonable assurance but do not prevent or detect all errors and fraud due to inherent limitations[135](index=135&type=chunk) [Changes in Internal Control over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no changes to internal control over financial reporting during Q1 fiscal 2023 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[136](index=136&type=chunk) [PART II - OTHER INFORMATION](index=28&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is involved in routine legal claims but does not anticipate any current actions to have a material adverse effect on its financial position, results of operations, liquidity, or capital resources - The Company is involved in claims and legal actions that arise in the ordinary course of its business[138](index=138&type=chunk) - Management does not believe that an unfavorable decision of any current claims or legal actions will have a material adverse effect on the Company's financial position, results of operations, liquidity, or capital resources[138](index=138&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the company's Annual Report for a comprehensive description of risk factors, noting that no material changes have occurred since the previous filing - For a detailed description of risk factors affecting the Company, refer to Item 1A in the Annual Report[139](index=139&type=chunk) - There have been no material changes from the risk factors previously disclosed in the Annual Report[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's share repurchase activities during the first quarter of fiscal 2023, including the number of shares bought back and the remaining authorization under its program [Information on Share Repurchases](index=29&type=section&id=Information%20on%20Share%20Repurchases) Share Repurchases (Thirteen weeks ended April 29, 2023): | Period | Total number of shares repurchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased under the plans or programs | | :--------------------------------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------------------------- | | January 29, 2023 through February 25, 2023 | 9,321 | $53.89 | $137,694,721 | | February 26, 2023 through April 1, 2023 | 98,895 | $54.49 | $132,257,435 | | April 2, 2023 through April 29, 2023 | 107,306 | $59.18 | $125,916,069 | | **Total** | **215,522** | | | - As of April 29, 2023, the Company had **$125.9 million** remaining under its share repurchase authorization, which expires on December 15, 2023[142](index=142&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications from the Chief Executive Officer and Chief Financial Officer, as well as various Inline XBRL documents - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[143](index=143&type=chunk) - Inline XBRL documents, including the instance document, schema, calculation, definition, label, and presentation linkbase documents, were submitted electronically[143](index=143&type=chunk) [SIGNATURES](index=31&type=section&id=SIGNATURES) This section formally concludes the Form 10-Q filing, indicating that the report has been duly signed on behalf of Ollie's Bargain Outlet Holdings, Inc. by its Senior Vice President and Chief Financial Officer - The report was signed on June 7, 2023, by Robert Helm, Senior Vice President and Chief Financial Officer of Ollie's Bargain Outlet Holdings, Inc[148](index=148&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-37501 Ollie's Bargain Outlet Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 80-0848819 (Stat ...

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) Q4 2022 Earnings Conference Call March 22, 2023 8:30 AM ET Company Participants Lyn Walther - ICR John Swygert - President and Chief Executive Officer Eric van der Valk - Executive Vice President and Chief Operating Officer Rob Helm - Senior Vice President and Chief Financial Officer Conference Call Participants Peter Keith - Piper Sandler Eric Cohen - Gordon Haskett Jeremy Hamblin - Craig-Hallum Bradley Thomas - KeyBanc Jason Haas - Bank of America Kate M ...

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) Q3 2022 Earnings Conference Call December 7, 2022 8:30 AM ET Company Participants Lyn Walther - ICR John Swygert - President and Chief Executive Officer Rob Helm - Senior Vice President and Chief Financial Officer Eric van der Valk - Executive Vice President and Chief Operating Officer Conference Call Participants Taylor Zick - KeyBanc Capital Markets Matt Edgar - Piper Sandler Jason Haas - Bank of America Edward Kelly - Wells Fargo Jeremy Hamblin - Craig- ...

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 July 30, 2022 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) 6295 Allentown Boulevard Suite 1 Harrisburg, Pennsylva ...