Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), a leading retailer specializing in closeout merchandise and excess inventory, reported its fourth-quarter and fiscal year 2024 results. The company operates 575 stores across 31 states, providing consumers with significant discounts on brand-name products in various categories such as housewares, food, and health and beauty aids.

For the fourth quarter, Ollie’s net sales reached $667.1 million, reflecting an increase of 2.8% compared to $648.9 million in the same period last year. When excluding the previous fiscal year’s 53rd week, which accounted for $34.0 million in sales, the sales increase would have been 8.5%. Comparable store sales were up 2.8%, supported by equal increases in both transactions and shopping basket size.

Adjusted net income for the fourth quarter stood at $73.4 million, or $1.19 per diluted share, a decrease from $76.3 million, or $1.23 per diluted share, reported in the prior year’s fourth quarter. Overall net income for the quarter was $68.6 million, or $1.11 per diluted share, down from $76.5 million, or $1.23 per diluted share, year-over-year. Adjusted EBITDA amounted to $109.4 million, translating to a margin of 16.4%.

Gross margin for the fourth quarter improved by 20 basis points to 40.7%, primarily due to lower supply chain costs, although this was slightly offset by a marginal decline in merchandise margin driven by product mix changes. Selling, general, and administrative expenses (SG&A) grew to $169.8 million, increasing as a percentage of net sales to 25.5% from 24.1% compared to the prior year. Excluding one-time expenses related to equity awards, SG&A as a percentage of net sales rose to 24.6% from 24.1%.

Fiscal year 2024 also showed significant growth, with total net sales increasing by 8.0% to $2.272 billion, compared to $2.103 billion in fiscal year 2023. Excluding the 53rd week, net sales grew by 9.8%. Adjusted net income for the year was $202.4 million, or $3.28 per diluted share, representing an increase of 12.2% compared to $180.4 million, or $2.91 per diluted share, for the previous fiscal year. Adjusted EBITDA was $313.1 million, with an adjusted EBITDA margin of 13.8%.

For fiscal year 2025, Ollie’s plans to open approximately 75 new stores, significantly ramping up from the 50 stores opened in 2024. The company projects total net sales for fiscal 2025 in the range of $2.564 billion to $2.586 billion, with comparable store sales growth expected between 1% and 2%. The anticipated gross margin is approximately 40%, with operating income projected between $283 million and $292 million.

The company’s balance sheet remains strong, ending fiscal 2024 with approximately $429 million in cash and short-term investments and no borrowings under its revolving credit facility. Inventories at the end of fiscal year 2024 were $552.5 million, up 9.2% year-over-year, driven by new store growth. Capital expenditures totaled $120.6 million, primarily allocated to new store developments and enhancing distribution capabilities.

Ollie’s recently announced a new $300 million share repurchase program, building on its previous repurchases, which have totaled nearly $414 million since 2019. With strategic growth opportunities manifesting through recent store acquisitions, Ollie’s is poised for continued expansion within the closeout market.