Ollie's Bargain Outlet Holdings, Inc. Reports Third Quarter Financial Results
HARRISBURG, Pa., Dec. 10, 2024 — Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) announced its financial results for the third quarter ended November 2, 2024. The company witnessed remarkable growth and continued its expansion strategy despite challenges in comparable store sales.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $517.4 million | $480.1 million | +7.8% |
| Earnings Per Share (EPS) | $0.58 | $0.51 | +13.7% |
The company achieved a 7.8% increase in total net sales, driven by significant new store growth, although comparable store sales slightly declined by 0.5%. Earnings per share rose impressively by 13.7% to $0.58. The enhancements in the operating income and margin indicate strong expense control and operational efficiency.
Segment Revenue Performance:
| Segment | Revenue Q3 2024 | Revenue Q3 2023 | YoY Change |
|---|---|---|---|
| Comparable Store Sales | -0.5% | +7.0% | - |
The decrease in comparable store sales highlights a slight decline in performance compared to the previous year’s increase. However, the company's expansion activities, particularly in new store openings, positively impacted overall revenue growth.
Key Developments & Operational Highlights: - Opened 24 new stores while closing three, including two permanent and one temporary closure due to Hurricane Helene. - Ended the third quarter with a total of 546 stores across 31 states, marking an 8.1% increase in store count year-over-year. - Achieved an operating margin increase of 50 basis points to 8.6%.
Comments from Company Officers:
CEO John Swygert expressed satisfaction with the results, crediting disciplined expense control and robust sales strategies for the strong financial performance. He mentioned the upcoming leadership transition, with Eric van der Valk set to take over as CEO at the beginning of fiscal 2025, while expressing optimism about Ollie's growth potential and market positioning.
Share Repurchase Program:
During the quarter, Ollie's repurchased 169,359 shares for $15.8 million, with $38.4 million remaining in its share repurchase program, signaling a commitment to enhancing shareholder value.
Forward Guidance:
Ollie's fiscal 2024 outlook includes adjustments stemming from third-quarter results, though detailed figures for the fourth quarter remain largely unchanged.
In conclusion, Ollie's Bargain Outlet has demonstrated robust growth in the third quarter of fiscal 2024, spurred by strategic expansions and effective fiscal management. The projected leadership transition and ongoing store expansion further solidify the company's promising outlook.
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