Ollie's Bargain Outlet Holdings, Inc. Reports Second Quarter Fiscal 2024 Financial Results

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported a strong financial performance for the second quarter of fiscal 2024, with total net sales increasing by 12.4% to $578.4 million compared to the same period last year [2][6] - The company raised its fiscal year sales and earnings outlook, reflecting confidence in continued growth and operational execution [5][16] Financial Performance - Comparable store sales rose by 5.8%, down from a prior year increase of 7.9% [2][36] - Operating income increased by 15.6% to $60.8 million, with an operating margin of 10.5%, up 30 basis points from the previous year [10][36] - Net income grew by 16.1% to $49.0 million, translating to $0.79 per diluted share, compared to $42.2 million or $0.68 per diluted share in the prior year [11][36] - Adjusted net income also increased by 15.6% to $48.2 million, or $0.78 per diluted share [11][36] - Adjusted EBITDA rose by 16.4% to $74.5 million, with an adjusted EBITDA margin of 12.9%, up 50 basis points from the previous year [12][36] Operational Highlights - The company opened nine new stores, bringing the total to 525 stores across 31 states, marking an 8.9% year-over-year increase in store count [2][36] - Gross profit increased by 11.4% to $219.0 million, while gross margin decreased slightly to 37.9% due to changes in product mix [7][36] - Selling, general, and administrative expenses rose by 8.2% to $145.7 million, but as a percentage of net sales, SG&A decreased to 25.2% [8][36] Future Outlook - The company plans to open 50 new stores in fiscal 2024 and aims to achieve a 40% annual gross margin [5][16] - The updated outlook for fiscal 2024 includes net sales projected between $2.276 billion and $2.291 billion, with a comparable store sales increase expected between 2.7% and 3.2% [16][17]