Ollie's Bargain Outlet: Delivering Strong Earnings Growth in a Challenging Retail Landscape

In its second-quarter 2026 earnings call, Ollie's Bargain Outlet demonstrated resilience in the face of economic pressures and an elevated promotional environment. Despite a 1.8% decline in comparable store sales due to less favorable weather, continued consumer economic pressure, and increased promotions, the company delivered strong earnings growth.

"We believe our sales results were negatively impacted by the combination of less favorable weather, continued economic pressure on the consumer, and an elevated promotional environment, which all led to a more challenging backdrop than we originally expected," said Eric van der Valk, President and Chief Executive Officer of Ollie's Bargain Outlet.

"The consumer remains resilient, but increasingly selective in how they choose to spend. Lower income customers are prioritizing needs over wants, shopping closer to need, and in many cases, delaying discretionary purchases where they can, while higher income customers continue to trade down in search of value," added van der Valk.

The company's unique treasure hunt shopping experience, combining extreme value, well-known brands, and an ever-changing assortment, has helped it maintain a strong connection with its customer base. Ollie's Bargain Outlet has seen a 13% increase in Ollie's Army members, with over 18 million bargainers at the end of the quarter.

"We are all about growth, and our growth starts with opening new stores and acquiring new customers," stated van der Valk. During the second quarter, Ollie's Bargain Outlet opened 50 new stores, exceeding its first-half target of 42 new stores, more than halfway to its full-year goal of 75.

The company is also investing in events and programs that strengthen engagement and deepen connections with customers. Its successful Ollie's Army Night and annual Ollie Days events drove even stronger customer acquisition and engagement compared to the previous year.

"Our flexible closeout model gives us the ability to pursue exceptional deals while strengthening categories that are driving demand," noted van der Valk. As a result of its strong deal flow, Ollie's Bargain Outlet can sharpen its value proposition and optimize its assortment and category mix to better align with today's customer preferences.

Overall, Ollie's Bargain Outlet demonstrated its resilience in the face of market challenges, delivering strong earnings growth while continuing to execute against its strategic initiatives. The company remains focused on driving growth through new store openings, customer acquisition, and strengthening its value proposition in a competitive retail landscape."
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