Financial Data and Key Metrics Changes - The company reported a net sales increase of 18% to $680 million, driven by new store openings and comparable store sales growth [15] - Adjusted earnings per share increased by 26.9% to $0.99 for the quarter, with adjusted net income reaching $61 million [18] - Adjusted EBITDA rose by 26% to $94 million, with an adjusted EBITDA margin of 13.8% for the quarter [18] Business Line Data and Key Metrics Changes - The company opened 29 new stores in Q2, bringing the total to 613 stores, a 17% year-over-year increase [14] - Comparable store sales increased by 5%, driven by an increase in transactions, with strong demand for consumer staples and seasonal items [15] - The top five performing categories included Lawn and Garden, Hardware, Food, Housewares, and Domestics [15] Market Data and Key Metrics Changes - The company has seen a 10.6% increase in Ollie's Army members, reaching 16.1 million, with members spending over 40% more per visit than non-members [9][15] - The company is capitalizing on market share opportunities due to retail bankruptcies and store closures, which have provided additional buying opportunities [6][30] Company Strategy and Development Direction - The company is committed to profitable growth and plans to open 85 new stores in total for the year, raising its new store target [8][21] - The Ollie's Army loyalty program is a key focus, with enhancements aimed at customer acquisition and retention [13][39] - The company aims for double-digit annual unit growth moving forward, leveraging a flexible store model adaptable to various geographies and demographics [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum, raising the sales and earnings outlook for the fiscal year [13][20] - The company anticipates continued strong deal flow due to market disruptions from tariffs and retail bankruptcies, which are beneficial for its business model [28][30] - Management noted that the current economic environment presents unique opportunities for market share expansion [22] Other Important Information - The company celebrated its 43rd anniversary and its 10-year anniversary as a public company, highlighting its strong performance as a retail IPO [10][11] - The balance sheet remains strong, with total cash and investments increasing by 30% to $460 million and no meaningful long-term debt [19] Q&A Session Summary Question: Can you elaborate on the improving cadence of comp as the second quarter progressed? - Management noted that May was flat, June began to accelerate, and July was the strongest month of the quarter [32] Question: How did the Ollie's Army Night compare to traditional events? - The revamped Ollie's Army Night exceeded expectations, driving record customer engagement and acquisition, with sales surpassing previous events [36][39] Question: What are the opportunities for gross margins over the next couple of years? - Management indicated that while they are guiding for gross margins above 40%, they are cautious about long-term projections and plan to maintain flexibility in pricing [49][116] Question: How are new stores performing compared to prior cohorts? - New stores are performing above plan, with strong payback periods consistent with historical performance [62] Question: What is the impact of tariffs on product sourcing? - Management stated they are price followers and will adjust sourcing strategies to maintain value propositions despite tariff impacts [118] Question: How is the customer acquisition from former Big Lots stores? - The company is seeing accelerated acquisition in new stores, with many customers expressing familiarity with the deep discount model [105]