Ollie's Bargain Outlet Sees Strong Q1 Growth

Ollie's Bargain Outlet Holdings, Inc. has reported a strong performance in the first quarter of fiscal 2024, with significant increases across various financial metrics compared to the same period in fiscal 2023.

Total net sales increased by 10.8% to $508.8 million, driven by both new store unit growth and a 3.0% increase in comparable store sales.

Gross profit rose by 17.2% to $209.4 million, with the gross margin expanding by 220 basis points to 41.1%, primarily due to favorable supply chain costs and higher merchandise margin.

Operating income surged by 46.6% to $56.5 million, resulting in an operating margin increase of 270 basis points to 11.1%.

Net income also saw a substantial increase, rising by 49.6% to $46.3 million, or $0.75 per diluted share, compared to $31.0 million, or $0.50 per diluted share, in the first quarter of fiscal 2023. Adjusted net income increased by 47.0% to $45.2 million, or $0.73 per diluted share, from $30.8 million, or $0.49 per diluted share, in the same period last year.

Adjusted EBITDA increased by 40.3% to $69.4 million, with the adjusted EBITDA margin expanding by 280 basis points to 13.6%.

The company's cash and cash equivalents and short-term investments were reported at $341.5 million, up from $275.5 million in the first quarter of fiscal 2023. Additionally, Ollie's invested $25.0 million to repurchase 336,934 shares of its common stock during the first quarter of fiscal 2024.

Looking ahead, Ollie's Bargain Outlet Holdings, Inc. has raised its sales and earnings outlook for fiscal 2024. The company anticipates new store openings, with a net increase of 48 stores, and a range of financial expectations including net sales between $2.257 billion to $2.277 billion, and adjusted net income per diluted share between $3.18 to $3.28.

In a separate announcement, Ollie's Bargain Outlet also disclosed executive promotions and appointments as part of the anticipated leadership succession, including the transition of John Swygert to executive chairman in early 2025 and the promotion of Eric Van Der Valk to the role of president, effective immediately, and to chief executive officer in early 2025.

As a result of these announcements, the company's shares have moved 9.8% on the market, and are now trading at a price of $90.08. For the full picture, make sure to review Ollie's Bargain Outlet's 8-K report.

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