Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) has reported a robust financial performance for its second quarter, showcasing significant gains across key financial metrics.
The company's net sales surged by 12.4% to reach $578.4 million, driven by a 5.8% increase in comparable store sales and the addition of nine new stores.
This expansion brings Ollie’s total presence to 525 stores across 31 states.
The discount retailer also saw a healthy increase in operating income, which climbed 15.6% to $60.8 million, while the operating margin edged up by 30 basis points to 10.5%.
This performance marks a continuation of positive growth trends, albeit at a slightly slower pace compared to last year’s increase in comparable store sales of 7.9%.
Net income for the quarter rose 16.1% to $49 million, translating to $0.79 per diluted share.
Furthermore, adjusted EBITDA improved by 16.4% to $74.5 million, with the adjusted EBITDA margin expanding by 50 basis points to 12.9%.
Meanwhile, the company’s financial health was further underscored by its cash reserves.
As of the end of the second quarter, Ollie’s held $353.1 million in cash and cash equivalents and short-term investments, an increase from the $310.2 million recorded in the same period the previous year.
Following the earnings release, Ollie’s share price fell over 6% to $87.99 in early trading.