Q1 2026 Ollie's Bargain Outlet Holdings Inc Earnings Call Transcript
Key Points
- Ollie's Bargain Outlet Holdings Inc (OLLI) reported strong earnings growth driven by solid top-line results, robust margins, and disciplined expense control.
- The company opened 27 new stores in the first quarter, increasing its store count by more than 15% to 672 stores across 35 states.
- Ollie's Army loyalty program grew by 13% to 17.5 million members, with these members accounting for more than 80% of sales.
- Gross margin increased by 80 basis points to 41.9%, driven by lower supply chain costs and higher merchandise margins.
- The company repurchased $53 million of its common stock in the quarter, reflecting confidence in its business model and financial strength.
- Unseasonable weather and surging fuel prices negatively impacted key categories such as Lawn and Garden and Summer Furniture.
- Traffic was affected by trip consolidation due to higher gas prices, particularly impacting lower-income consumers.
- The South region underperformed due to drought-like conditions, with the lawn and garden category being the biggest drag.
- The company is running behind its full-quarter guidance for the second quarter, primarily due to weather volatility and pressure on lower-income consumers.
- Inventory levels increased by 12% year-over-year, driven by new store growth, which could pose a risk if sales do not meet expectations.
Good morning, and welcome to Ollie's Bargain Outlet's conference call to discuss financial results for the first-quarter fiscal year 2026. 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.
I would now like to introduce our host for today's call, John Rouleau, Managing Director of Corporate Communications and Business Development for Ollie's. John, please go ahead.
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Thank you, Carmen. Good morning, everybody. We appreciate your time and participation. Joining me on today's call from Ollie's are Eric van der Valk, President and Chief Executive Officer, and Robert Helm, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions. (Event Instructions)
Finally, let me remind you that certain comments made on today's call may constitute forward-looking
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