Ollie’s Bargain Outlet declared market conditions provide it with greater opportunity in 2025 after posting lower-than expected sales and profits in its recent fourth quarter.
Net income was $68.6 million, or $1.11 per diluted share, in the fourth quarter versus $76.5 million, or $1.23 per diluted share, in the year-previous period. Adjusted for one-time events, net income was $73.4 million, or $1.19 per diluted share, versus $76.3 million, or $1.23 per diluted share, in the year-before period.
Ollie’s missed a Zacks Investment Research analyst consensus estimate of $1.20 per adjusted diluted share and $672.11 million in revenue
Net sales were $667.1 million versus $648.9 million in the year-earlier quarter with comparable sales, up 2.8%, and store growth contributing to the advance. A 53rd week in the fiscal 2023 fourth quarter generated $34 million of the period’s net sales total. Comps gained because of increases in transactions and basket size, Ollie’s pointed out.
Operating income was $87.7 million versus $97.7 million in the year-prior quarter while adjusted operating income ws $93.2 million versus $97.7 million, the company stated.
For the full fiscal year, Ollie’s net income was $199.8 million, or $3.23 per diluted share, versus $181.4 million, or $2.92 per diluted share, in the year-previous quarter. Adjusted net was $202.4 million, or $3.28 per diluted share, versus $180.4 million, or $2.91 per diluted share, in the year-before period.
Net sales were $2.27 billion versus $2.10 billion in fiscal 2023, with the advance driven by a 2.8% comp increase and new store additions. The 53rd week in fiscal 2023 generated $34 million of the year’s net sales total
Operating income was $249.5 million versus $227.8 million in the year prior while adjusted operating income was $255 million versus $227.8 million.
Eric van der Valk, Ollie’s president and CEO, said in a conference call market conditions, including consumers who are under economic pressure and retail store closures, will provide opportunity in the year ahead. In one move to capitalize on that opportunity, Ollie’s is acquiring 40 additional former Big Lots store leases that come with below-market rents on long-term deals. The CEO added the availability of closeout merchandise remains strong and stable, allowing Ollie’s to present consumers with a changing assortment of unique products at sharp prices.
The company ended the quarter with 559 stores in 31 states, up 9% year-over-year. It opened 13 new stores in the quarter and 50 during the fiscal year. Ollie’s already has debuted 16 stores in fiscal 2025, Robert Helm, the company’s executive vice president and CFO, said in the conference call. The retailer intends to open 75 new stores in the current fiscal year. Helm also noted top performing categories in the fourth quarter were housewares, food and candy, electronics and room air.
In announcing the financial results, van der Valk said, “We were very pleased with our financial results and the underlying trends in our business. At a time when consumers need it most, we are delivering unprecedented value through an ever-changing assortment that combines quality, national brands and pricing in a way that can only be found at Ollie’s. With so many retailers closing stores or going bankrupt in the past year, there are a considerable number of abandoned customers, merchandise, real estate and talent in the marketplace. We think there is a unique opportunity to take on some of these assets in a manner that strengthens our competitive positioning, broadens our footprint, and bolsters shareholder returns for years to come. With our expanded supply chain, flexible and resilient operating model, fortress balance sheet, and committed associates, we are ready.”
