Q4 2024 Ollie's Bargain Outlet Holdings Inc Earnings Call Transcript
Key Points
- Ollie's Bargain Outlet Holdings Inc (OLLI) reported a 2.8% increase in comparable store sales for the fourth quarter, aligning with expectations.
- The company successfully acquired 40 additional store leases from former Big Lots locations, which are expected to generate long-term profitability due to below-market rents and long-term leases.
- Ollie's army membership grew by over 8% to 15.1 million members, with sales to members representing over 80% of total sales.
- The company ended the quarter with a strong balance sheet, holding $429 million in cash and short-term investments, and no outstanding borrowings.
- Ollie's announced a new $300 million share buyback program, demonstrating a commitment to returning capital to investors while pursuing growth opportunities.
- The company faced some pressure from unfavorable weather and the liquidation of Big Lots stores, impacting near-term earnings growth.
- There were transitory expenses related to bankruptcy-acquired stores and accelerated growth, which put pressure on near-term earnings.
- The first quarter of fiscal 2025 got off to a sluggish start, with challenges such as weather, Big Lots store closures, and delayed tax refunds.
- Big ticket items have been softer, and there is ongoing pressure from tariffs creating uncertainty across the retail landscape.
- The company anticipates higher pre-opening expenses due to the acquisition of Big Lots locations, which will impact earnings in the short term.
Good morning and welcome to Ollie's Bargain Outlet conference call to discuss financial results for the fourth quarter and fiscal year 2024. (Operator Instructions) Please be advised that this call is being recorded, and the reproduction of this call in whole or in part is not permitted without the express written authorization of Ollie's.
Joining us on today's call from Ollie's management are Eric van der Valk, President and Chief Executive Officer; and Robert Helm, Executive Vice President and Chief Financial Officer.
Certain comments made today may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended.
Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ material from such statements. These risks and uncertainties are described in our annual report on Form 10-K and quarterly reports on Form 10-Q on file with the SEC and earnings press release.
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