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

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported a 2.8% increase in comparable store sales for Q4 fiscal 2024, with net sales rising to $667.1 million from $648.9 million in Q4 fiscal 2023 [8][14] - The company plans to open 75 new stores in fiscal 2025, up from 50 in fiscal 2024, indicating a strong growth strategy [29][28] - The adjusted net income for Q4 fiscal 2024 was $73.4 million, or $1.19 per diluted share, reflecting a decrease from the previous year's adjusted net income of $76.3 million, or $1.23 per diluted share [14][21] Financial Performance - For the full fiscal year 2024, total net sales increased by 8.0% to $2.272 billion, with comparable store sales rising by 2.8% [9][16] - Gross margin improved to 40.3% in fiscal 2024 from 39.6% in fiscal 2023, primarily due to favorable supply chain costs [16] - Selling, general, and administrative expenses as a percentage of net sales increased to 27.0% in fiscal 2024 from 26.8% in fiscal 2023 [17] Operational Highlights - The company opened 13 new stores in Q4 fiscal 2024, ending the quarter with a total of 559 stores, a 9.2% increase year-over-year [8][9] - Pre-opening expenses rose to $4.8 million in Q4 fiscal 2024 from $1.6 million in Q4 fiscal 2023, driven by earlier store openings [12] - Operating income for Q4 fiscal 2024 was $87.7 million, which included a one-time expense of $5.5 million related to equity awards [13] Balance Sheet and Cash Flow - As of the end of fiscal 2024, the company had cash and cash equivalents of $428.7 million, up from $353.2 million at the end of fiscal 2023 [23] - Inventories increased by 9.2% to $552.5 million, reflecting the company's accelerating store growth [24] - Capital expenditures for fiscal 2024 were $120.6 million, primarily for new store development and distribution center completion [25] Future Outlook - For fiscal 2025, the company estimates net sales between $2.564 billion and $2.586 billion, with a comparable store sales increase of 1% to 2% [29][30] - The projected adjusted net income for fiscal 2025 is between $225 million and $232 million, translating to an adjusted net income per diluted share of $3.65 to $3.75 [30]