Ollie's Bargain Outlet Holding (OL6) Q2 2026 Earnings Report

The call was cautiously optimistic. Ollie's delivered substantial earnings, EBITDA and cash-flow-related strength, continued store growth, strong customer loyalty gains, robust deal flow and ongoing supply-chain investments. However, comparable sales declined 1.8%, seasonal categories were materially affected by weather, consumers remained selective, promotions were unusually aggressive, and full-year comparable-sales expectations were reduced to flat to positive 0.5%. Management maintained confidence in long-term profitable growth while taking a more measured view of the near term.

The revised fiscal 2026 outlook assumes 75 new store openings, 2 store closures from storm damage, net sales of $2.928 billion to $2.941 billion, comparable store sales growth of flat to positive 0.5%, gross margin in the range of 41.3%, operating income of $345 million to $350 million, adjusted net income of $275 million to $279 million and adjusted net income per share of $4.57 to $4.65; the back half assumes comp growth close to flat in the third quarter and up 1% in the fourth quarter, $28 million of tariff refunds, net of a 50 basis point investment in price, current tariff rates and fuel costs remain in place for the balance of the fiscal year, depreciation and amortization expense of $62 million, inclusive of $15 million included in cost of goods sold, preopening expenses of $21 million, interest income of $22 million, an annual effective tax rate of approximately 25%, diluted weighted average shares outstanding of approximately 60 million, a higher share repurchase level of $175 million and capital expenditures in the range of $103 million to $113 million; the company is planning for the full year to invest approximately $15 million in price investments and expects fuel pressure to continue to be in the range of, say, 20 to 30 basis points, while its long-term target for gross margin remains 40.5%.