Company Overview - Ollie's Bargain Outlet Holdings, Inc. is celebrating the Grand Opening of its 600th store in Belmont, New Hampshire, marking its expansion into the 34th state [1][2] - The company is recognized as America's largest retailer of brand name closeout merchandise, offering discounts of up to 70% off compared to traditional retailers [1][4] Product Offering - Ollie's provides a wide range of products including books, flooring, food, housewares, toys, electronics, bed and bath items, health and beauty products, and pet supplies [1][2] - The company operates under the mission of selling "Good Stuff Cheap®" through a flexible buying model that focuses on closeout merchandise and excess inventory [4] Employment Impact - Each new store opening creates approximately 50 to 60 jobs in the local community, contributing to the employment of over 13,000 associates across the company [2]

Core Insights - Costco's total comparable sales increased by 5.8% in June, driven by strong demand for fresh foods and non-food categories such as jewelry, major appliances, and gift cards [1] - The retailer's net sales rose by 8.0% to reach $26.44 billion during the retail month of June [3] Sales Performance by Region - In the United States, sales increased by 4.7%, while in Canada, sales rose by 6.7%, and in other international markets, sales grew by 10.9% [2] eCommerce Growth - Costco's eCommerce sales experienced an increase of 11.5% for the month [2] Sales by Category - Comparable sales in June showed high-single-digit growth in fresh foods, mid- to high-single-digit growth in non-foods, and mid-single-digit growth in June foods and sundries [4] - The ancillary business sales declined by low-single digits, and gas sales decreased by mid- to high-single digits [5] Consumer Behavior Trends - High-income consumers are increasingly seeking value, with affluent members trading down to private-label goods and lower-cost proteins [6] Delivery Enhancements - Costco partnered with Instacart to enhance delivery options, including Priority Delivery for faster service and No-Rush Delivery for scheduled orders [7]

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10] - Total sales in Q4 increased 7.8% to $1.39 billion from $1.29 billion in the previous year, while comparable sales decreased 3% [25] - Adjusted net income for Q4 was $192.4 million compared to $193.8 million last year, resulting in adjusted EPS of $3.48 versus $3.50 last year [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores across 39 states in 2024, ending the year with 1,771 stores [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% over the previous year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26] - Adjusted SG&A for Q4 increased approximately 110 basis points to 22.3% due to fixed cost deleverage and higher store wages [27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a comp average ticket decrease of 1% [25] - The overall inventory position improved, with inventory at the end of the year at $659.5 million compared to $584.6 million at the end of the previous year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][21] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [19][22] - The company is also looking to expand its store footprint, with a target of 3,500 stores, and densifying existing markets [85] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in buying habits [41] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][45] - Management is excited about the opportunities for growth and improving sales performance through operational excellence and financial discipline [7][21] Other Important Information - The company ended the year with approximately $529 million in cash and no debt, positioning itself strongly for future investments [29] - The company is actively addressing the impact of tariffs through vendor collaboration and selective price adjustments [33] Q&A Session Summary Question: Overall health of the consumer and buying habits - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [41][42] Question: Impact of tariffs on projections - The company assumes about a 100 basis point impact from tariffs for the full year, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: Margin recovery and pricing adjustments - Management is focused on ensuring value in products priced at $5 and below, with adjustments being made carefully [55][56] Question: New product development and marketing spend - The company is excited about new product assortments for summer and is optimizing marketing spend to ensure efficiency [63][66] Question: Evaluation of FiveBeyond and shrink rates - Management sees opportunities in the FiveBeyond section and is focused on reducing shrink rates, which have increased by about 100 basis points since 2019 [68][72]