Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) issued a confident outlook for the coming year, signaling that the appetite for extreme-value retail remains robust even as the broader consumer sector faces fluctuating discretionary spending.
The Harrisburg, Pennsylvania-based discounter expects fiscal 2026 net sales to reach between $2.985 billion and $3.013 billion, according to a statement Thursday.
The company also forecast adjusted earnings per share in the range of $4.40 to $4.50, supported by an anticipated gross margin of approximately 40.5%.
The guidance follows a landmark fiscal 2025, during which the retailer capitalized on a steady stream of closeout merchandise and inventory liquidations from struggling competitors.
Net sales for the full year climbed 16.6% to $2.649 billion, while net income rose to $240.6 million.
The company’s growth engine was powered by a record 86 new store openings, bringing its "Good Stuff Cheap" mantra to dozens of new markets.
Central to the company’s resilience is its loyalty program, Ollie’s Army, which expanded to 17 million members by year-end.
This database of bargain hunters has become a critical moat for the retailer, providing a steady flow of repeat foot traffic.
Management utilized its strong balance sheet to reward shareholders, repurchasing $73.8 million of stock while ending the year with $562.8 million in cash and investments.
Looking ahead, Ollie’s plans to maintain its aggressive physical expansion, with approximately 75 new store openings slated for fiscal 2026.
While comparable store sales are expected to moderate to a growth rate of about 2%, the company's focus remains on capturing market share through geographic density and its unique supply chain of opportunistic buying.