Ollie’s Bargain Outlet Holdings (OLLI) Q2 2026 Financial Results Summary
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Ollie’s Bargain Outlet Holdings, Inc. (OLL) Q2 2026: Revenue Growth Amidst Challenges — Mixed Results
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported its second-quarter fiscal 2026 results, revealing a net sales increase of $61.7 million or +9.1% year-over-year, reaching $741.3 million. However, the company faced a decline in comparable store sales of 1.8%, contrasting with a 5.0% increase in the same quarter last year.
This quarter presents a mixed bag for shareholders. While revenue growth is a positive sign, the decline in comparable store sales indicates underlying challenges in consumer spending and market conditions. The increase in net income to $85.5 million, up 39.4% from $61.3 million in the prior year, and a rise in adjusted net income per diluted share to $1.42, up 43.4% from $0.99, are commendable. However, the overall performance suggests that the company is navigating a tough retail environment.
Key Financial Metrics:
- Net Sales: $741,305,000 (up $61,749,000 or +9.1% YoY)
- Comparable Store Sales Change: -1.8% (down from +5.0% YoY)
- Net Income: $85,454,000 (up $24,144,000 or +39.4% YoY)
- Net Income per Diluted Share: $1.42 (up $0.43 or +43.4% YoY)
- Adjusted EBITDA: $127,095,000 (up $33,309,000 or +35.5% YoY)
- Gross Margin: 43.5% (up 360 basis points YoY)
- SG&A Expenses as a Percentage of Net Sales: 26.6% (up 80 basis points YoY)
- Store Openings: 15 new stores (totaling 686 stores, up 11.9% YoY)
- Ollie’s Army Membership Growth: 12.7% increase to 18.1 million members
Dividend and Share Buyback:
Ollie’s continued its share repurchase program, investing $84.0 million to buy back 1.107 million shares during the quarter. This reflects the company's commitment to returning value to shareholders, with $121.5 million remaining available for future repurchases under the current authorization.
Guidance Update:
The company has updated its fiscal 2026 outlook, adjusting its net sales forecast to a range of $2.928 billion to $2.941 billion, down from the previous range of $2.980 billion to $3.000 billion. The comparable store sales growth outlook has also been revised to 0% to 0.5%, down from approximately 2%. Despite these adjustments, the company expects to maintain a gross margin of around 41.3%, which is an improvement from the previous estimate of 40.7%.
Analyst Opinion:
The results indicate that while Ollie’s is successfully expanding its footprint and increasing revenue, the decline in comparable store sales raises concerns about consumer behavior and market conditions. The company’s ability to navigate these challenges will be crucial in the coming quarters. The strong growth in net income and adjusted EBITDA is encouraging, but the overall performance suggests that shareholders should remain cautious.
Forward Catalyst:
Investors should closely monitor Ollie’s performance in the upcoming quarters, particularly how the company adapts to the current economic pressures and consumer trends. The impact of the updated guidance on sales and margins will be critical, as will the effectiveness of the company’s pricing strategies and promotional activities in driving foot traffic and sales growth. Additionally, the performance of newly opened stores and the growth of Ollie’s Army loyalty program will be key indicators of future success.
Note: All amounts in the following tables are in thousands.
| Thirteen weeks ended August 1, 2026 | Thirteen weeks ended August 2, 2025 | |
|---|---|---|
| Net sales | $741,305 | $679,556 |
| Yr/yr change | 9.1% | 17.5% |
| Comparable store sales change | (1.8%) | 5.0% |
| Net income | $85,454 | $61,310 |
| Net income per diluted share | $1.42 | $0.99 |
| Adjusted net income per diluted share | $1.42 | $0.99 |
| Yr/yr change | 43.4% | 26.9% |
| Adjusted EBITDA | $127,095 | $93,786 |
| % of net sales | 17.1% | 13.8% |
| Store openings | 15 | 29 |
| Store growth, yr/yr change | 11.9% | 16.8% |
| Assets | August 1, 2026 | August 2, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $120,765 | $231,163 |
| Short-term investments | $66,737 | $85,893 |
| Inventories | $704,433 | $637,236 |
| Accounts receivable | $7,801 | $1,810 |
| Prepaid expenses and other current assets | $17,187 | $11,716 |
| Total current assets | $916,923 | $967,818 |
| Property and equipment, net | $419,234 | $360,836 |
| Operating lease right-of-use | $694,113 | $652,341 |
| Goodwill | $444,850 | $444,850 |
| Trade name | $230,559 | $230,559 |
| Long-term investments | $319,592 | $143,206 |
| Other assets | $2,325 | $2,242 |
| Total assets | $3,027,596 | $2,801,852 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Current portion of long-term debt | $809 | $518 |
| Accounts payable | $190,207 | $165,629 |
| Income taxes payable | $5,755 | $129 |
| Current portion of operating lease liabilities | $99,157 | $103,122 |
| Accrued expenses and other current liabilities | $115,656 | $98,968 |
| Total current liabilities | $411,584 | $368,366 |
| Long-term debt | $1,420 | $912 |
| Deferred income taxes | $94,733 | $85,640 |
| Long-term portion of operating lease liabilities | $624,260 | $561,024 |
| Total liabilities | $1,131,997 | $1,015,942 |
| Stockholders’ equity: | ||
| Common stock | $68 | $68 |
| Additional paid-in capital | $764,299 | $745,636 |
| Retained earnings | $1,750,163 | $1,476,583 |
| Treasury - common stock | $(618,931) | $(436,377) |
| Total stockholders’ equity | $1,895,599 | $1,785,910 |
| Total liabilities and stockholders’ equity | $3,027,596 | $2,801,852 |
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