OLLI Ollie'S Bargain Outlet Holdings, Inc. - 8-K

EX-99.1
2
ef20075441_ex99-1.htm
EXHIBIT 99.1

Exhibit 99.1

Ollie’s Bargain Outlet Holdings, Inc. Announces

First Quarter Fiscal 2026 Results

Earnings Ahead of Expectations

Net Sales Increased 14%, Earnings Per Share Increased 19%,

and Adjusted Earnings Per Share Increased 21%

Raising Fiscal 2026 Earnings Per Share Outlook

HARRISBURG, PA – June 3, 2026 – Ollie’s Bargain
Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced financial results for the first quarter ended May 2, 2026.

“ We are very pleased with our first quarter results and the
outstanding performance of our team,” said Eric van der Valk, President and Chief Executive Officer. “We delivered strong earnings growth driven by solid top line results and unit growth, robust margins, and disciplined expense control. These
results underscore the durability of our business model, the strength of our value proposition, and our ability to execute through a challenging consumer backdrop.”

Mr. van der Valk continued, “On top of delivering strong earnings growth in the quarter, we continue to execute well against our strategic initiatives. We opened 27 new
stores, grew our Ollie’s Army membership base by 13%, made progress on our category productivity initiatives, reinvested in our supply chain, and returned $53 million to shareholders through share repurchases in the first quarter. Based on our solid
start to the year, we are raising our earnings per share outlook for fiscal 2026.”

Thirteen weeks ended

Dollars in thousands, except per share data

May 2,

2026

May 3,

2025

Net sales

$

658,928

$

576,767

Yr/yr change

14.2

%

13.4

%

Comparable store sales change (1)

1.7

%

2.6

%

Net income

$

56,400

$

47,560

Net income per diluted share

$

0.92

$

0.77

Adjusted net income per diluted share

$

0.91

$

0.75

Yr/yr change

21.3

%

2.7

%

Adjusted EBITDA

$

87,892

$

72,159

% of net sales

13.3

%

12.5

%

Store openings

27

25

Store growth, yr/yr change

15.1

%

13.2

%

(1)

Calculated based on the comparable number of weeks from the prior year.

First Quarter 2026 Highlights and Year-Over-Year Comparisons

•

Opened 27 new stores and ended the quarter with 672 stores in 35 states, an increase of 15.1%.

•

Ollie’s Army loyalty members increased 12.6% to 17.5 million members.

•

Net sales increased 14.2% to $658.9 million, driven by new store unit growth and an increase in comparable store sales.

•

Comparable store sales increased 1.7%, driven primarily by an increase in basket.

•

Gross margin increased 80 basis points to 41.9%. This was above our expectation and driven by lower supply chain costs and a modest increase in merchandise margin.

•

Selling, general, and administrative (“SG&A”) expenses as a percentage of net sales was flat at 28.6%.

•

Pre-opening expenses decreased 3.2% to $6.4 million, primarily driven by lower dark rent expense associated with the bankruptcy acquired stores, partially offset by an increase in store openings.

•

Adjusted net income increased 21.3% to $55.9 million and adjusted net income per diluted share
increased 21.3% to $0.91 .

•

Total cash and investments increased 26.7%, or $110.7 million, to $525.6 million. This included cash and cash equivalents of $197.7 million, short-term investments of $51.9 million, and long-term
investments of $276.0 million.

•

The Company invested $53.4 million of cash to repurchase 542,486 shares of its common stock. At the end of the first quarter, $205.4 million remained available for future share repurchases under the
current share repurchase authorization.

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Outlook

The Company is raising its earnings per share outlook for the 2026 fiscal year ending January 30, 2027. A table comparing the current outlook metrics to the previous
outlook metrics is below. These metrics do not assume any impact from IEEPA tariff refunds.

Current

Previous

New store openings

75

75

Net sales

$2.980 to $3.000 billion

$2.985 to $3.013 billion

Comparable store sales growth

~2%

~2%

Gross margin

~40.7%

~40.5%

Operating income

$340 to $348 million

$339 to $348 million

Adjusted net income (1)(2)

$271 to $277 million

$270 to $277 million

Adjusted net income per diluted share (1)(2)

$4.45 to $4.55

$4.40 to $4.50

Annual effective tax rate (2)

~25%

~25%

Diluted weighted average shares outstanding

~60.9 million

~61.4 million

Capital expenditures

$103 to $113 million

$103 to $113 million

Share repurchases

~$125 million

~$100 million

(1)

Includes interest income of approximately $21 million.

(2)

Excludes the excess tax benefits related to stock-based compensation, as the Company cannot predict such estimates without unreasonable
effort.

Conference Call Information

A conference call to discuss first quarter 2026 financial results is scheduled for today, June 3, 2026, at 8:30 a.m. Eastern Time. To access the live conference call,
please preregister here . Registrants will receive a confirmation with
dial-in instructions. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at https://investors.ollies.com/ . A replay of the conference
call webcast will be available on the investor relations website for one year.

About Ollie’s

Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good
Stuff Cheap®. We do this through a flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at
prices up to 70% below traditional retailers. As of May 2, 2026, we operated 672 stores in 35 states and growing! For more information, visit www.ollies.com .

Non-GAAP Reconciliation

The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), Adjusted net income (loss) per diluted
share, EBITDA, and Adjusted EBITDA are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded
as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business.

Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” table included in this press release, which sets forth the non-GAAP operating adjustments for
the 13-week periods ended May 2, 2026 and May 3, 2025.

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Forward-Looking Statements

This press release contains certain forward-looking statements, which includes but is not limited to statements regarding industry trends, value creation, customer
trends, new stores, distribution centers, and various financial outlook figures, including new store openings, net sales, comparable store sales, gross margin, SG&A, operating income, net income, adjusted net income, adjusted net income per
diluted share, effective tax rate, diluted weighted average shares outstanding and capital expenditures. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to
the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations.
Forward-looking statements are usually identified by or are associated with such words as “could”, “may”, “might”, “will,” “likely”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “expects”, “continues”, “projects”, “forecasts”, and
similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to factors outside of our control. These factors include, without
limitation, the impact of the recent tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and
Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from
those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q,
and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to
or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Investor Contact

John Rouleau

Managing Director of Corporate Communication & Business Development

[email protected]

Media Contact

Tom Kuypers

Senior Vice President, Marketing

[email protected]

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Ollie’s Bargain Outlet Holdings, Inc.

Condensed Consolidated Statements of Income (unaudited)

(In thousands except for per share amounts)

Thirteen weeks ended

May 2,

2026

May 3,

2025

Net sales

$

658,928

$

576,767

Cost of sales

382,964

339,736

Gross profit

275,964

237,031

Selling, general and administrative expenses

188,682

164,832

Depreciation and amortization expenses

11,283

9,357

Pre-opening expenses

6,442

6,656

Operating income

69,557

56,186

Interest income, net

(4,966

)

(4,788

)

Income before income taxes

74,523

60,974

Income tax expense

18,123

13,414

Net income

$

56,400

$

47,560

Earnings per common share:

Basic

$

0.93

$

0.78

Diluted

$

0.92

$

0.77

Weighted average common shares outstanding:

Basic

60,884

61,343

Diluted

61,191

61,816

Percentage of net sales:

Net sales

100.0

%

100.0

%

Cost of sales

58.1

58.9

Gross profit

41.9

41.1

Selling, general and administrative expenses

28.6

28.6

Depreciation and amortization expenses

1.7

1.6

Pre-opening expenses

1.0

1.2

Operating income

10.6

9.7

Interest income, net

(0.8

)

(0.8

)

Income before income taxes

11.3

10.6

Income tax expense

2.8

2.3

Net income

8.6

%

8.2

%

Components may not add to totals due to rounding.

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Ollie’s Bargain Outlet Holdings, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(In thousands)

Assets

May 2,

2026

May 3,

2025

Current assets:

Cash and cash equivalents

$

197,673

$

199,018

Short-term investments

51,886

170,490

Inventories

686,922

611,852

Accounts receivable

4,887

2,348

Prepaid expenses and other current assets

19,621

14,313

Total current assets

960,989

998,021

Property and equipment, net

398,308

346,151

Operating lease right-of-use assets

680,820

639,664

Goodwill

444,850

444,850

Trade name

230,559

230,559

Long-term investments

276,038

45,355

Other assets

2,335

2,379

Total assets

$

2,993,899

$

2,706,979

Liabilities and Stockholders’ Equity

Current liabilities:

Current portion of long-term debt

$

844

$

566

Accounts payable

154,751

137,869

Income taxes payable

25,952

14,364

Current portion of operating lease liabilities

111,764

99,767

Accrued expenses and other current liabilities

120,909

95,238

Total current liabilities

414,220

347,804

Long-term debt

1,513

925

Deferred income taxes

91,905

81,006

Long-term portion of operating lease liabilities

596,175

547,431

Total liabilities

1,103,813

977,166

Stockholders’ equity:

Common stock

68

68

Additional paid-in capital

760,276

739,333

Retained earnings

1,664,709

1,415,273

Treasury - common stock

(534,967

)

(424,861

)

Total stockholders’ equity

1,890,086

1,729,813

Total liabilities and stockholders’ equity

$

2,993,899

$

2,706,979

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Ollie’s Bargain Outlet Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

(In thousands)

Thirteen weeks ended

May 2,

2026

May 3,

2025

Net cash provided by operating activities

$

45,501

$

28,702

Net cash used in investing activities

(49,561

)

(18,266

)

Net cash used in financing activities

(57,947

)

(16,541

)

Net decrease in cash and cash equivalents

(62,007

)

(6,105

)

Cash and cash equivalents, beginning of the period

259,680

205,123

Cash and cash equivalents, end of the period

$

197,673

$

199,018

Ollie’s Bargain Outlet Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

(In thousands except for per share amounts)

Thirteen weeks ended

May 2,

2026

May 3,

2025

Net income

$

56,400

$

47,560

Excess tax benefits related to stock-based compensation (1)

(494

)

(1,487

)

Adjusted net income

$

55,906

$

46,073

Net income per diluted share

$

0.92

$

0.77

Adjustments as noted above, per dilutive share:

Excess tax benefits related to stock-based compensation (1)

(0.01

)

(0.02

)

Adjusted net income per diluted share

$

0.91

$

0.75

Diluted weighted-average common shares outstanding

61,191

61,816

Net income

$

56,400

$

47,560

Interest income, net

(4,966

)

(4,788

)

Depreciation and amortization expenses

14,934

12,809

Income tax expense

18,123

13,414

EBITDA

84,491

68,995

Non-cash stock-based compensation expense

3,401

3,164

Adjusted EBITDA

$

87,892

$

72,159

Components may not add to totals due to rounding.

(1)

Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards
Update 2016-09, Stock Compensation

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Ollie’s Bargain Outlet Holdings, Inc.

Key Statistics (unaudited)

(Dollars in thousands)

Thirteen weeks ended

May 2,

2026

May 3,

2025

Number of stores - beginning of period

645

559

Store openings

27

25

Store closings

-

-

Number of stores - end of period

672

584

Yr/yr store growth

15.1

%

13.2

%

Comparable stores sales change

1.7

%

2.6

%

Comparable store count – end of period

557

508

Total cash and investments (1)

$

525,597

$

414,863

Capital expenditures

$

25,474

$

26,740

Share repurchases

$

53,366

$

17,107

(1)

Includes cash and cash equivalents, short-term investments,
and long-term investments.

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