Financial Performance - Ollie's Bargain Outlet reported quarterly earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.20 per share, and down from $1.23 per share a year ago, representing an earnings surprise of -0.83% [1] - The company posted revenues of $667.08 million for the quarter, missing the Zacks Consensus Estimate by 0.75%, compared to $648.95 million in the same quarter last year [2] - Over the last four quarters, Ollie's has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Ollie's Bargain Outlet shares have declined approximately 9.7% since the beginning of the year, while the S&P 500 has decreased by 4.5% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $572.98 million, and for the current fiscal year, it is $3.76 on revenues of $2.57 billion [7] - The outlook for the Consumer Products - Staples industry, where Ollie's operates, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Ollie's Bargain Outlet (OLLI) Q4 2025 Earnings Call March 19, 2025 08:30 AM ET Company Participants Eric van der Valk - President & CEORobert Helm - Executive VP & CFOSteven Zaccone - Director, Equity Research, Hardlines RetailChuck Grom - Managing DirectorAlexia Morgan - AVP - Equity ResearchBradley Thomas - Associate Director of ResearchKate McShane - Managing DirectorAnthony Chukumba - Managing Director Conference Call Participants Matt Boss - Equity Research AnalystLauren Ng - AnalystScot Ciccarelli - M ...

Sales Performance - Q4 net sales increased 2.8% to $667.1 million, with a comparable store sales increase of 2.8%[4] - Fiscal 2024 total net sales increased 8.0% to $2.272 billion, with a comparable store sales increase of 2.8%[10] - Net sales for the quarter ended February 1, 2025, were $667.1 million, an increase of 2.0% from $648.9 million for the same quarter in 2024[38] - Comparable store sales change for the quarter was 2.8%, compared to 3.9% in the same quarter of 2024[61] - Average net sales per store for the quarter ended February 1, 2025, was $1,200,000, down from $1,273,000 in the same quarter of 2024[61] Store Expansion - The company opened 13 new stores in Q4, ending the quarter with 559 stores, a 9.2% year-over-year increase[4] - The company plans to open 75 new stores in fiscal 2025, up from 50 in fiscal 2024[28] - The number of stores open at the end of the quarter was 559, an increase from 512 at the end of the same quarter in 2024[61] - The company opened 13 new stores in the quarter, compared to 7 new stores opened in the same quarter of 2024[61] Financial Performance - Net income for Q4 was $68.6 million, or $1.11 per diluted share, a decrease of 10.4% from the prior year[12] - Net income for the fiscal year 2025 was $199.8 million, representing an increase of 10.0% from $181.4 million in 2024[38] - The company reported a diluted earnings per share of $3.23 for the fiscal year 2025, compared to $2.92 in 2024, reflecting an increase of 10.6%[38] - Net income for the quarter ended February 1, 2025, was $68,554,000, down from $76,475,000 in the same quarter of 2024, a decrease of 10.5%[54] - Adjusted net income for the fiscal year ended February 1, 2025, was $202,418,000, compared to $180,365,000 in 2024, an increase of 12.2%[54] EBITDA and Operating Income - Adjusted EBITDA for Q4 was $109.4 million, with an adjusted EBITDA margin of 16.4%[13] - Operating income for the quarter was $87.7 million, a decrease of 10.0% compared to $97.7 million in the same quarter last year[38] - Adjusted operating income for the fiscal year ended February 1, 2025, was $254,991,000, up from $227,799,000 in 2024, representing an increase of 11.9%[51] - EBITDA for the quarter ended February 1, 2025, was $100,317,000, compared to $107,357,000 in the same quarter of 2024, a decrease of 6.9%[60] - Adjusted EBITDA for the fiscal year ended February 1, 2025, was $313,076,000, up from $275,156,000 in 2024, an increase of 13.8%[60] Assets and Cash Flow - Total assets as of February 1, 2025, were $2.56 billion, an increase from $2.29 billion as of February 3, 2024[42] - Cash and cash equivalents decreased to $205.1 million from $266.3 million year-over-year[42] - The company ended fiscal 2024 with cash and cash equivalents of $428.7 million, compared to $353.2 million at the end of fiscal 2023[21] - Net cash provided by operating activities for the fiscal year was $227.5 million, down from $254.5 million in 2024[45] Capital Expenditures and Share Repurchase - Capital expenditures for fiscal 2024 were $120.6 million, primarily for new store development and distribution center completion[23] - The company announced a new share repurchase authorization for an additional $300 million of its outstanding common stock[25] Future Outlook - Fiscal 2025 net sales are estimated to be between $2.564 billion and $2.586 billion[28] - The company plans to continue expanding its market presence and investing in new store openings to drive future growth[38]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. has announced a new share repurchase authorization of $300 million, effective through March 31, 2029, reflecting the company's commitment to returning capital to shareholders while pursuing growth opportunities [1][2]. Financial Performance - The company has repurchased nearly $414 million, or 5.5 million shares, since initiating its first buyback in 2019 [1]. - As of the end of fiscal 2024, Ollie's reported $429 million in cash and short-term investments, with no borrowings under its revolving credit facility, indicating strong cash generation capabilities [2]. Business Strategy - The company aims to balance accelerated growth with capital returns to investors through share repurchases, while also addressing working capital needs [2]. - Ollie's operates 575 stores across 31 states, positioning itself as America's largest retailer of closeout merchandise and excess inventory [3].

Core Points - Ollie's Bargain Outlet Holdings, Inc. has announced a new share repurchase authorization of $300 million for its outstanding common stock, effective through March 31, 2029 [1] - The company has repurchased nearly $414 million, or 5.5 million shares, since initiating its first buyback in 2019 [1] - The company reported having $429 million in cash and short-term investments with no borrowings under its revolving credit facility at the end of fiscal 2024, indicating strong cash generation [2] Company Overview - Ollie's is the largest retailer of closeout merchandise and excess inventory in America, offering a variety of brand name products at discounted prices [3] - The company operates 575 stores across 31 states and continues to expand its footprint [3]

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported a 2.8% increase in comparable store sales for Q4 fiscal 2024, with net sales rising to $667.1 million from $648.9 million in Q4 fiscal 2023 [8][14] - The company plans to open 75 new stores in fiscal 2025, up from 50 in fiscal 2024, indicating a strong growth strategy [29][28] - The adjusted net income for Q4 fiscal 2024 was $73.4 million, or $1.19 per diluted share, reflecting a decrease from the previous year's adjusted net income of $76.3 million, or $1.23 per diluted share [14][21] Financial Performance - For the full fiscal year 2024, total net sales increased by 8.0% to $2.272 billion, with comparable store sales rising by 2.8% [9][16] - Gross margin improved to 40.3% in fiscal 2024 from 39.6% in fiscal 2023, primarily due to favorable supply chain costs [16] - Selling, general, and administrative expenses as a percentage of net sales increased to 27.0% in fiscal 2024 from 26.8% in fiscal 2023 [17] Operational Highlights - The company opened 13 new stores in Q4 fiscal 2024, ending the quarter with a total of 559 stores, a 9.2% increase year-over-year [8][9] - Pre-opening expenses rose to $4.8 million in Q4 fiscal 2024 from $1.6 million in Q4 fiscal 2023, driven by earlier store openings [12] - Operating income for Q4 fiscal 2024 was $87.7 million, which included a one-time expense of $5.5 million related to equity awards [13] Balance Sheet and Cash Flow - As of the end of fiscal 2024, the company had cash and cash equivalents of $428.7 million, up from $353.2 million at the end of fiscal 2023 [23] - Inventories increased by 9.2% to $552.5 million, reflecting the company's accelerating store growth [24] - Capital expenditures for fiscal 2024 were $120.6 million, primarily for new store development and distribution center completion [25] Future Outlook - For fiscal 2025, the company estimates net sales between $2.564 billion and $2.586 billion, with a comparable store sales increase of 1% to 2% [29][30] - The projected adjusted net income for fiscal 2025 is between $225 million and $232 million, translating to an adjusted net income per diluted share of $3.65 to $3.75 [30]

Financial Results - Ollie's Bargain Outlet is set to release its fourth-quarter financial results on March 19, with expected earnings of $1.19 per share, a decrease from $1.23 per share in the same period last year [1] - The company projects quarterly revenue of $674.52 million, an increase from $648.95 million a year earlier [1] Leadership Changes - On February 3, Ollie's Bargain Outlet announced the appointment of Eric van der Valk as President & Chief Executive Officer [2] Stock Performance - Ollie's Bargain Outlet shares fell 4.1% to close at $99.06 [3] Analyst Ratings - RBC Capital analyst Steven Shemesh maintained an Outperform rating and raised the price target from $130 to $133 [5] - Wells Fargo analyst Edward Kelly maintained an Equal-Weight rating and increased the price target from $95 to $105 [5] - JP Morgan analyst Matthew Boss maintained an Overweight rating and boosted the price target from $105 to $135 [5] - Craig-Hallum analyst Jeremy Hamblin maintained a Buy rating and increased the price target from $107 to $130 [5] - Truist Securities analyst Scot Ciccarelli maintained a Buy rating and raised the price target from $109 to $121 [5]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. is expected to report a revenue increase for Q4 fiscal 2024, but a decline in earnings per share is anticipated compared to the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Q4 revenues is $672.1 million, reflecting a 3.6% year-over-year increase [1]. - The earnings per share estimate remains at $1.20, indicating a 2.4% decrease year-over-year [2]. - The company has a trailing four-quarter earnings surprise of 5%, with the last quarter outperforming estimates by 1.8% [2]. Group 2: Key Factors Influencing Performance - Ollie's business model of "buying cheap and selling cheap," along with cost-containment efforts and a focus on store productivity, are expected to positively impact revenue [3]. - The Ollie's Army loyalty program has seen continuous membership growth, with 14.8 million active members contributing to over 80% of sales [3]. - Comparable store sales growth is projected at 2.8% for the final quarter [3]. Group 3: Operational Strategies - The company's disciplined inventory management and sourcing from closeouts and overstocks ensure stores are well-stocked, enhancing customer experience and foot traffic [4]. - Ongoing store expansion, including the acquisition of "99 Cents Only" stores and leases for former Big Lots locations, is driving incremental revenue [5]. Group 4: Margin Considerations - There are concerns regarding margins due to potential increases in SG&A expenses, which are expected to rise by 3.8% year-over-year [6]. - An operating margin contraction of 110 basis points is anticipated [6]. Group 5: Earnings Prediction Model - The Zacks model indicates that Ollie's Bargain does not conclusively predict an earnings beat this time, with an Earnings ESP of +0.28% and a Zacks Rank of 4 (Sell) [7][8].

Core Viewpoint - Ollie's Bargain Outlet (OLLI) is expected to report a quarterly earnings per share (EPS) of $1.20, reflecting a 2.4% decline year-over-year, while revenues are projected to increase by 3.6% to $672.11 million [1] Earnings Estimates - The consensus EPS estimate has been adjusted downward by 0.4% over the past 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock performance [3] Key Metrics - Comparable store sales change is estimated at 2.6%, down from 3.9% a year ago [5] - The number of stores at the end of the period is projected to be 559, compared to 512 last year [5] - Analysts forecast 13 new stores, an increase from 7 in the previous year [5] - The number of stores open at the beginning of the period is expected to reach 546, up from 505 a year ago [6] Market Performance - Ollie's Bargain Outlet shares have decreased by 5.1% in the past month, while the Zacks S&P 500 composite has declined by 9.6% [7] - With a Zacks Rank of 4 (Sell), OLLI is anticipated to underperform the overall market in the near term [7]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. will release its fourth quarter and full-year fiscal 2024 financial results on March 19, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call hosted by the President and CEO, Eric van der Valk, and the Executive Vice President and CFO, Robert Helm, at 8:30 a.m. Eastern Time on the same day [1] - The company encourages interested parties to pre-register for the live conference call and provides options for listening to a live webcast or replay through its Investor Relations section [2] Group 2: Company Overview - Ollie's is recognized as America's largest retailer of closeout merchandise and excess inventory, offering significant value on brand name products across various departments [3] - The company operates 571 stores across 31 states and continues to expand its presence [3]