Ollie's Bargain Outlet (OLLI) - 2026 Q1 - Quarterly Report

Store Operations and Growth Strategy - Ollie's operates 584 stores across 32 states as of May 3, 2025, with a growth strategy focused on opening new stores and acquiring locations from distressed retailers[83]. - The company targets new store sales of approximately $4.0 million in their first full year of operations, with an average initial cash investment of about$1.0 million per store[85]. - The addition of a fourth distribution center in Princeton, IL, is expected to support up to 750 stores, enhancing distribution capabilities[84]. - The company opened 25 new stores in Q1 fiscal 2025, compared to 4 new stores in Q1 fiscal 2024[112]. - Capital expenditures for fiscal 2025 are planned to be approximately $83 to$88 million, primarily for the opening of 75 new stores[129]. Financial Performance - Net sales increased to $576.8 million in Q1 fiscal 2025 from$508.8 million in Q1 fiscal 2024, a growth of $67.9 million or 13.4$237.0 million in Q1 fiscal 2025, with a stable gross margin of 41.1%[120]. - Net income increased to $47.6 million in Q1 fiscal 2025 from$46.3 million in Q1 fiscal 2024, a rise of $1.2 million or 2.6$72.2 million in Q1 fiscal 2025 from $69.4 million in Q1 fiscal 2024, an increase of$2.7 million or 3.9%[127]. Expenses and Cost Management - The company expects SG&A expenses to increase in future periods as the store base and net sales grow, while maintaining strict discipline in monitoring these expenses[103]. - SG&A expenses rose to $164.8 million in Q1 fiscal 2025 from$142.4 million in Q1 fiscal 2024, an increase of $22.4 million or 15.7$6.7 million in Q1 fiscal 2025 from $2.7 million in Q1 fiscal 2024, representing 1.2$369.5 million in cash and cash equivalents, with $91.9 million available to borrow under its Revolving Credit Facility[128]. - Net cash provided by operating activities was$28.7 million in Q1 fiscal 2025, down from $40.2 million in Q1 fiscal 2024, primarily due to changes in working capital[138]. - Net cash used in investing activities decreased to$18.3 million in Q1 fiscal 2025 from $68.5 million in Q1 fiscal 2024, attributed to reduced net investment[139]. - Net cash used in financing activities was$16.5 million in Q1 fiscal 2025, a decrease from $25.7 million in Q1 fiscal 2024, mainly due to lower share repurchases[140]. - The net decrease in cash and cash equivalents was$6.1 million in Q1 fiscal 2025, compared to a decrease of $54.0 million in Q1 fiscal 2024[137]. Market Position and Consumer Behavior - Ollie's business model has shown consistent growth during various economic cycles, benefiting from offering products at prices 20$17.1 million in Q1 fiscal 2025, compared to 336,934 shares for $25.0 million in Q1 fiscal 2024[135]. - As of May 3, 2025, the Company had$315.5 million remaining under its share repurchase authorization[135]. - The Company had no outstanding variable rate debt as of May 3, 2025, indicating no current interest rate risk exposure[145]. - The Company’s cash flow from operating activities was impacted by the timing of merchandise payments, despite higher net income year over year[138]. Investment Activities - The Company’s purchases of investments in Q1 fiscal 2025 were $119.0 million, offset by maturities of$127.4 million[139]. - There have been no material changes to the Company’s contractual obligations as disclosed in the Annual Report[141].