Ollie’s Bargain Outlet raises full-year outlook as Q1 earnings surge

Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) reported strong financial results for the first quarter of fiscal 2026, driven by double-digit sales growth, substantial margin expansion, and an aggressive build-out of its physical store footprint.

The discount retailer outpaced prior-year benchmarks across all primary performance metrics, prompting management to boost its full-year earnings guidance.

Net sales for the quarter climbed 14.2% to $658.9 million, up from the same period last year, reflecting robust consumer traffic as shoppers continue to seek out discretionary value.

Profitability gains outpaced top-line growth, with diluted earnings per share rising 19% to $0.92.

On an adjusted basis, earnings per share jumped 21.3% to $0.91, while the company’s adjusted EBITDA margin reached a healthy 13.3%.

Operational efficiency and favorable closeout deal structures underpinned the quarter's strong bottom-line performance.

Ollie’s gross margin expanded by 80 basis points to 41.9%, illustrating the company's ability to navigate supply chain costs while maintaining competitive pricing advantages.

The Harrisburg, Pennsylvania-based retailer accelerated its market penetration during the three-month window by opening 27 new stores, expanding its total retail fleet to 672 locations nationwide.

This physical expansion was matched by deeper digital engagement; the company grew its active loyalty program base by 12.6%, bringing total Ollie’s Army members to 17.5 million.

This sticky membership base continues to drive a significant portion of the company's recurring transaction volume.

During the quarter, Ollie’s remained committed to its capital allocation strategy, deploying $53.4 million toward the repurchase of its common stock on the open market.

Buoyed by the strong start to the fiscal year and a highly liquid inventory pipeline, management updated its full-year financial projections.

Ollie’s raised its fiscal 2026 adjusted EPS guidance to a range of $4.45 to $4.55.