Ollie's Bargain Outlet Posts Strong Q3 Growth, Net Income Up 29%

TL;DR

**OLLI is crushing it with bargain-hungry consumers, buy the dip if you can find one.**

AI Summary

Ollie's Bargain Outlet Holdings, Inc. reported robust financial performance for the thirteen weeks ended November 1, 2025, with net sales increasing by 18.6% to $613.6 million from $517.4 million in the prior year. Net income saw a significant jump of 28.7% to $46.2 million, up from $35.9 million in the same period last year. For the thirty-nine weeks ended November 1, 2025, net sales climbed to $1.87 billion, a 16.5% increase from $1.60 billion, and net income rose by 18.2% to $155.0 million compared to $131.2 million in the previous year. Diluted earnings per share for the quarter increased to $0.75 from $0.58. The company expanded its retail footprint to 645 stores across 34 states as of November 1, 2025, demonstrating continued growth in its off-price retail model. Operating income for the quarter increased by 24.5% to $55.4 million, driven by higher sales and gross profit, which reached $253.7 million. Cash and cash equivalents stood at $144.7 million as of November 1, 2025, with net cash provided by operating activities at $114.2 million for the thirty-nine-week period.

Why It Matters

Ollie's impressive sales and net income growth signal strong consumer demand for value-priced goods, a trend that could intensify in a challenging economic environment. This performance positions OLLI favorably against full-price retailers and even other discount chains, demonstrating its ability to capture market share. For investors, the increased profitability and store expansion indicate a healthy, growing business with potential for continued shareholder returns, as evidenced by the $40.2 million in share repurchases. Employees benefit from a growing company, while customers gain access to more bargain options. The broader market sees a resilient retail model thriving amidst competitive pressures.

Risk Assessment

Risk Level: low — The company's strong financial performance, including an 18.6% increase in net sales and a 28.7% increase in net income for the thirteen weeks ended November 1, 2025, indicates robust operational health. Furthermore, net cash provided by operating activities increased to $114.2 million for the thirty-nine weeks ended November 1, 2025, up from $79.7 million in the prior year, demonstrating strong cash generation.

Analyst Insight

Investors should consider OLLI a strong contender in the retail sector, especially given its consistent growth and resilience in a value-driven market. Monitor inventory levels and gross margins closely, as these are key indicators of the company's ability to source and sell closeout merchandise profitably. The ongoing store expansion strategy suggests continued revenue growth potential.

Financial Highlights

debt To Equity

N/A

revenue

$1.87B

operating Margin

9.9%

total Assets

$2.86B

total Debt

$1.10B

net Income

$155.0M

eps

$2.51

gross Margin

40.8%

cash Position

$144.7M

revenue Growth

+16.5%

Key Numbers

• $613.6M — Net Sales (Q3 2025) (Increased 18.6% from $517.4M in Q3 2024)
• $46.2M — Net Income (Q3 2025) (Increased 28.7% from $35.9M in Q3 2024)
• $1.87B — Net Sales (YTD 2025) (Increased 16.5% from $1.60B in YTD 2024)
• $155.0M — Net Income (YTD 2025) (Increased 18.2% from $131.2M in YTD 2024)
• $0.75 — Diluted EPS (Q3 2025) (Increased from $0.58 in Q3 2024)
• 645 — Total Stores (As of November 1, 2025, indicating continued expansion)
• $114.2M — Net Cash from Operations (YTD 2025) (Increased from $79.7M in YTD 2024)
• $40.2M — Shares Repurchased (YTD 2025) (Demonstrates capital return to shareholders)
• $253.7M — Gross Profit (Q3 2025) (Increased from $214.5M in Q3 2024)
• $55.4M — Operating Income (Q3 2025) (Increased from $44.5M in Q3 2024)

Key Players & Entities

• Ollie's Bargain Outlet Holdings, Inc. (company) — registrant
• NASDAQ Stock Market LLC (regulator) — exchange where OLLI is registered
• SEC (regulator) — Securities and Exchange Commission
• $613,619 (dollar_amount) — net sales for thirteen weeks ended November 1, 2025
• $46,172 (dollar_amount) — net income for thirteen weeks ended November 1, 2025
• $1,869,942 (dollar_amount) — net sales for thirty-nine weeks ended November 1, 2025
• $155,042 (dollar_amount) — net income for thirty-nine weeks ended November 1, 2025
• $0.75 (dollar_amount) — diluted earnings per common share for thirteen weeks ended November 1, 2025
• 645 (dollar_amount) — number of retail stores as of November 1, 2025
• $11,577 (dollar_amount) — shares repurchased for thirteen weeks ended November 1, 2025

FAQ

Risk Factors

• Supply Chain Disruptions [high — operational]: The company's reliance on a consistent flow of merchandise presents a risk. Disruptions in the supply chain, as seen in the increase of cost of sales from $302,969K in Q3 2024 to $359,965K in Q3 2025, can impact gross profit and inventory levels. The company's ability to source and manage inventory effectively is crucial for its off-price model.
• Competition in Off-Price Retail [medium — market]: The off-price retail sector is highly competitive. While Ollie's reported strong net sales growth of 18.6% to $613.6 million in Q3 2025, increased competition could pressure margins and market share. The company operates alongside other national off-price retailers and discount stores.
• Inventory Management and Valuation [medium — financial]: With inventories at $702.8 million as of November 1, 2025, effective inventory management is critical. Fluctuations in inventory value or the need for markdowns could impact profitability. The company's ability to turn over inventory efficiently is key to its business model.
• Store Expansion and Performance [medium — operational]: The company's growth strategy includes expanding its store footprint, reaching 645 stores by November 1, 2025. Each new store opening involves pre-opening expenses, which increased to $7.4 million in Q3 2025 from $7.17 million in Q3 2024. Ensuring new stores achieve profitability and contribute positively to overall performance is a key operational challenge.
• Compliance with Retail Regulations [low — regulatory]: As a retail operator, Ollie's is subject to various federal, state, and local regulations concerning product safety, labor practices, and consumer protection. Non-compliance could lead to fines, legal actions, and reputational damage. The company's income tax expense increased to $13.77 million in Q3 2025 from $12.67 million in Q3 2024.

Industry Context

Ollie's Bargain Outlet operates in the highly competitive off-price retail sector, characterized by a focus on value and opportunistic buying. The industry has seen sustained growth driven by consumer demand for discounts, especially in uncertain economic times. Key players compete on merchandise selection, pricing, and store experience, with a constant need to manage inventory effectively and maintain supplier relationships.

Regulatory Implications

Ollie's faces standard retail regulatory risks including consumer protection laws, product safety standards, and labor regulations. The company's effective tax rate, reflected in its income tax expense of $13.77M for Q3 2025, is also subject to changes in tax legislation. Compliance with these regulations is essential to avoid penalties and maintain operational integrity.

What Investors Should Do

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Key Dates

• 2025-11-01: End of Q3 2025 reporting period — Reported strong net sales of $613.6M and net income of $46.2M, with 645 stores in operation.
• 2025-11-01: Balance Sheet Date — Total assets reached $2.86B, with significant inventory of $702.8M and operating lease right-of-use assets of $652.7M.
• 2025-11-01: Cash Flow Reporting Period End — Generated $114.2M in net cash from operating activities for the year-to-date period.

Glossary

Operating lease right-of-use assets

Represents the right to use an asset for a specified period under a lease agreement. For Ollie's, this primarily relates to their retail store leases. (A significant asset on the balance sheet ($652.7M as of Nov 1, 2025), reflecting the company's extensive store network and long-term lease commitments.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Ollie's has $444.9M in goodwill, indicating past acquisitions where the purchase price exceeded the book value of the acquired assets, suggesting potential for brand or synergy value.)

Weighted average common shares outstanding (diluted)

The average number of a company's outstanding common shares over a period, adjusted for the dilutive effect of stock options, warrants, and convertible securities. (Used to calculate diluted earnings per share (EPS). Diluted EPS for Q3 2025 was $0.75, based on 61.8M shares.)

Cost of sales

The direct costs attributable to the production or purchase of the goods sold by a company during a period. (Increased by 18.8% year-over-year in Q3 2025 to $359.9M, reflecting higher sales volume and potentially increased merchandise costs.)

Gross profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Increased by 18.3% in Q3 2025 to $253.7M, indicating that revenue growth outpaced the increase in cost of sales.)

Year-Over-Year Comparison

Ollie's Bargain Outlet Holdings, Inc. demonstrated significant year-over-year growth in the reported period. Net sales increased by 18.6% to $613.6 million for the quarter and 16.5% to $1.87 billion year-to-date. Net income saw a substantial rise of 28.7% to $46.2 million for the quarter and 18.2% to $155.0 million year-to-date, leading to improved diluted EPS of $0.75. Operating income also grew by 24.5% to $55.4 million in the quarter, indicating improved operational efficiency and sales leverage. While cash position decreased from $205.1M at Feb 1, 2025 to $144.7M at Nov 1, 2025, net cash from operations remains robust.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value OLLI The NASDAQ Stock Marke

Filing Documents

• ef20055468_10q.htm (10-Q) — 1274KB
• ef20055468_ex31-1.htm (EX-31.1) — 12KB
• ef20055468_ex31-2.htm (EX-31.2) — 12KB
• ef20055468_ex32-1.htm (EX-32.1) — 5KB
• ef20055468_ex32-2.htm (EX-32.2) — 5KB
• 0001140361-25-045024.txt ( ) — 6133KB
• olli-20251101.xsd (EX-101.SCH) — 34KB
• olli-20251101_def.xml (EX-101.DEF) — 191KB
• olli-20251101_lab.xml (EX-101.LAB) — 387KB
• olli-20251101_pre.xml (EX-101.PRE) — 214KB
• olli-20251101_cal.xml (EX-101.CAL) — 49KB
• ef20055468_10q_htm.xml (XML) — 997KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Statements of Income for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 1 Condensed Consolidated Balance Sheets as of November 1, 2025, February 1, 2025, and November 2, 2024 2 Condensed Consolidated Statements of Stockholders' Equity for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024 3 Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 5. Other Information 33 Item 6. Exhibits 34 Index

– CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) OLLIE'S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Thirteen weeks ended Thirty-nine weeks ended November 1, November 2, November 1, November 2, 2025 2024 2025 2024 Net sales $ 613,619 $ 517,428 $ 1,869,942 $ 1,604,621 Cost of sales 359,965 302,969 1,107,919 961,773 Gross profit 253,654 214,459 762,023 642,848 Selling, general, and administrative expenses 180,273 154,467 520,581 442,559 Depreciation and amortization expenses 10,566 8,296 29,839 24,016 Pre-opening expenses 7,401 7,174 23,029 14,495 Operating income 55,414 44,522 188,574 161,778 Interest income, net ( 4,524 ) ( 4,028 ) ( 13,846 ) ( 12,257 ) Income before income taxes 59,938 48,550 202,420 174,035 Income tax expense 13,766 12,666 47,378 42,827 Net income $ 46,172 $ 35,884 $ 155,042 $ 131,208 Earnings per common share: Basic $ 0.75 $ 0.59 $ 2.53 $ 2.14 Diluted $ 0.75 $ 0.58 $ 2.51 $ 2.13 Weighted average common shares outstanding: Basic 61,346 61,330 61,343 61,341 Diluted 61,814 61,764 61,809 61,742 See accompanying notes to the condensed consolidated financial statements. 1 Index OLLIE'S BARGAIN OUTLET HOLDINGS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) November 1, February 1, November 2, Assets 2025 2025 2024 Current assets: Cash and cash equivalents $ 144,699 $ 205,123 $ 128,685 Short-term investments 41,315 223,546 175,226 Inventories 702,832 552,542 607,331 Accounts receivable 2,537 2,352 2,367 Prepaid expenses and other current assets 12,421 10,228 10,178 Total current assets 903,804 993,791 923,787 Property and equipment, net of accumu