Ollie’s Bargain Outlet (NASDAQ:OLLI) Posts Earnings Results, Beats Estimates By $0.30 EPS

Ollie’s Bargain Outlet (NASDAQ:OLLI) released its earnings results on Wednesday. The company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.30, Briefing.com reports. Ollie’s Bargain Outlet had a net margin of 9.79% and a return on equity of 14.54%. The company had revenue of $741.31 million during the quarter, compared to analyst estimates of $747.71 million. During the same period in the prior year, the firm posted $0.99 EPS. The firm’s quarterly revenue was up 9.1% compared to the same quarter last year. Ollie’s Bargain Outlet updated its FY 2026 guidance to 4.570-4.650 EPS.

Here are the key takeaways from Ollie’s Bargain Outlet’s conference call:

• Comparable-store sales declined 1.8% in Q2, pressured by unfavorable weather, economic pressure on lower-income consumers, higher fuel costs, and an elevated promotional environment. Lower-income shoppers are prioritizing necessities and shopping less frequently, while some customers are staying closer to home.
• Net sales increased 9.1% to $741 million, supported by new store openings, while adjusted EPS rose 43% to $1.42. The company opened 50 stores in Q2 and remains on track for 75 openings this fiscal year.
• Gross margin expanded 360 basis points to 43.5%, and adjusted EBITDA margin rose to 17.1%, primarily due to $28 million of IEEPA tariff refunds. Management plans to reinvest part of the benefit in price reductions to reinforce Ollie’s value leadership, although the tariff benefit is viewed as temporary.
• Fiscal 2026 guidance was tempered to flat to 0.5% comparable-sales growth and adjusted EPS of $4.57 to $4.65, reflecting weaker recent trends. Management expects a modest sales acceleration in Q4, citing strong holiday deal flow, loyalty events, and more favorable comparisons.
• Customer engagement and long-term expansion initiatives remain strong, with Ollie’s Army membership up 13% to more than 18 million members, a robust closeout sourcing pipeline, distribution-center investments, and $137 million of share repurchases completed through the first half.

Ollie’s Bargain Outlet Stock Down 0.2%

Shares of Ollie’s Bargain Outlet stock opened at $73.69 on Friday. The firm has a market cap of $4.45 billion, a price-to-earnings ratio of 16.45, a PEG ratio of 1.28 and a beta of 0.50. The business has a 50-day moving average price of $72.28 and a 200-day moving average price of $84.19. Ollie’s Bargain Outlet has a twelve month low of $60.29 and a twelve month high of $139.21.

Key Headlines Impacting Ollie’s Bargain Outlet

Here are the key news stories impacting Ollie’s Bargain Outlet this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.42, well above analyst estimates of approximately $1.12-$1.14 and up from $0.99 a year earlier. Revenue rose 9.1% year over year to $741.3 million, despite falling short of the $747.7 million consensus estimate. OLLI Q2 Earnings Top Estimates
• Positive Sentiment: Ollie’s raised fiscal 2026 adjusted EPS guidance to $4.57-$4.65, above the approximately $4.52 analyst consensus. Tariff refunds helped boost gross margins and contributed to the earnings outperformance. Ollie’s Raises Earnings Outlook
• Positive Sentiment: Royal Bank of Canada raised its price target to $124 and maintained an “outperform” rating. Jefferies also maintained a “buy” rating, while Goldman Sachs, Piper Sandler and Wells Fargo retained bullish ratings with $90-$100 targets. Analysts Revise Forecasts
• Neutral Sentiment: The company plans to invest $15 million to lower prices, a move intended to improve customer value and traffic but potentially limiting near-term margin expansion. Ollie’s to Invest in Lower Prices
• Negative Sentiment: Comparable-store sales declined 1.8%, and the company’s fiscal 2026 revenue outlook of approximately $2.928-$2.941 billion is below Wall Street expectations near $3.0 billion. Goldman Sachs, Piper Sandler, Morgan Stanley and Wells Fargo all reduced their price targets, signaling caution about sales momentum and consumer demand.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on OLLI. JPMorgan Chase & Co. lifted their target price on shares of Ollie’s Bargain Outlet from $70.00 to $73.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Truist Financial increased their price target on Ollie’s Bargain Outlet from $80.00 to $85.00 and gave the stock a “buy” rating in a research note on Thursday. Piper Sandler set a $98.00 price target on Ollie’s Bargain Outlet in a research note on Thursday. The Goldman Sachs Group decreased their price target on Ollie’s Bargain Outlet from $112.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday. Finally, UBS Group lowered their price objective on Ollie’s Bargain Outlet from $87.00 to $85.00 and set a “neutral” rating on the stock in a research report on Thursday, August 27th. Thirteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $102.57.

Institutional Investors Weigh In On Ollie’s Bargain Outlet

A number of hedge funds have recently made changes to their positions in OLLI. Corient Private Wealth LLC grew its holdings in Ollie’s Bargain Outlet by 127.3% during the 4th quarter. Corient Private Wealth LLC now owns 12,326 shares of the company’s stock valued at $1,351,000 after buying an additional 6,903 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its stake in Ollie’s Bargain Outlet by 37.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 3,076 shares of the company’s stock worth $337,000 after acquiring an additional 845 shares during the last quarter. Vident Advisory LLC raised its holdings in shares of Ollie’s Bargain Outlet by 93.5% during the 4th quarter. Vident Advisory LLC now owns 4,547 shares of the company’s stock worth $498,000 after acquiring an additional 2,197 shares in the last quarter. XTX Topco Ltd raised its holdings in shares of Ollie’s Bargain Outlet by 116.4% during the 4th quarter. XTX Topco Ltd now owns 5,374 shares of the company’s stock worth $589,000 after acquiring an additional 2,891 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of Ollie’s Bargain Outlet by 57.1% during the 4th quarter. Wellington Management Group LLP now owns 953,008 shares of the company’s stock valued at $104,459,000 after acquiring an additional 346,543 shares during the last quarter.

Ollie’s Bargain Outlet Company Profile

Ollie’s Bargain Outlet is an American discount retailer specializing in closeout merchandise and surplus inventory across a broad range of categories. The company operates a no-frills retail format that offers branded and private-label products at significant markdowns. Its merchandise mix typically includes housewares, electronics, health and beauty items, food products, beauty supplies, books, toys, and seasonal goods.

Founded in 1982 by Oliver E. “Ollie” Rosenberg, the company is headquartered in Harrisburg, Pennsylvania.