Ollie’s Bargain Outlet credited second-quarter earnings and comparable sales gains in part on tariff-related purchasing opportunities, and housewares was among the deep discounter’s top performers.
Net income was $61.3 million, or 99 cents per diluted share, versus $49 million, or 79 cents per diluted share, in the year-previous quarter. Adjusted for one-time events, net income was $60.9 million, or 99 cents per diluted share, versus $48.2 million, or 78 cents per diluted share, in the year-before period, the company reported.
A Zacks Investment Research analyst consensus estimate pegged second quarter adjusted diluted earnings per share at 91 cents and revenues at $662.7 million.
Year over year, comparable store sales increased 5%, driven by a transactions increase.
Net sales were $679.6 million versus $578.4 million in the year-prior period. Operating income was $77 million versus $60.8 million in the year-earlier quarter.
Ollie’s raised its full-year fiscal guidance on sales, now $2.63 billion to $2.64 billion from $2.58 billion to $2.6 billion, comps now 3% to 3.5% from 1.4% to 2.2% and adjusted net income per diluted share, now $3.76 to $3.84 from $3.65 to $3.75.
Ollies opened 29 stores during the second quarter, ending the period with 613 in 34 states.
As stated in a conference call, Ollie’s top five performing product segments were lawn and garden, hardware, food, housewares and domestics. The company said disruptions caused by recent tariff changes presented Ollie’s with buying opportunities, and it is purchasing based on its value formula from sources in the United States and around the world.
In announcing the financial results,” Eric van der Valk, Ollie’s president and CEO, said, “We had a very strong second quarter and are operating with the wind in our sails. We are driving the business to new heights through improved planning, coordination and execution across the organization. New store openings, total sales, comparable store sales and earnings were all ahead of our expectations in the quarter, and we are raising our full-year outlook across the board. Consumers responded to our compelling assortment of bargains, especially in our consumer staples and seasonal categories. Ollie’s Army growth was another bright spot in the quarter, headlined by an outstanding response to our reimagined Ollie’s Days event.”
