Ollie's Bargain Outlet reported fiscal 2026 second-quarter revenue of $741 million, up 9.1% year on year, driven by contributions from new stores, while same-store sales declined 1.8%. Full-year guidance was lowered to flat to 0.5% growth in same-store sales, while its long-term growth strategy remained unchanged.
Revenue rose 9.1% year on year to $741 million, driven by contributions from new stores, while same-store sales declined 1.8%. Management said the number of transactions was flat and that lower average ticket size affected results. Gross margin expanded by 360 basis points to 43.5%, although management also pointed out that the increase was aided by tariff refunds. Adjusted net income rose 40% to $85 million, and adjusted diluted EPS increased 43% to $1.42.
Management lowered its sales outlook for the second half and reduced its full-year same-store sales guidance to flat to 0.5% growth. At the same time, it maintained its plan to open 75 new stores in fiscal 2026 and expressed confidence in its long-term growth strategy, including capital investment and an expanded share repurchase authorization. Cash and marketable securities totaled approximately $507 million, while long-term interest-bearing debt was close to zero. The company indicated that it intends to increase the amount of share repurchases.
The earnings presentation projects second-half sales to be roughly flat in the third quarter and up approximately 1% in the fourth quarter. Based on assumptions including approximately $28 million in tariff refunds and the impact of price investments, full-year guidance calls for revenue of $2.928 billion to $2.941 billion, ECM same-store sales growth of approximately 0% to 0.5%, a gross margin of approximately 41.3%, adjusted net income of approximately $275 million to $279 million, and adjusted EPS of $4.57 to $4.65.