Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported its financial results for the first quarter of fiscal year 2025, showcasing a robust performance characterized by significant growth in both sales and store openings. As of May 3, 2025, Ollie’s operates 584 stores across 32 states.

In the first quarter, net sales reached $576.8 million, reflecting a year-over-year increase of 13.4% from $508.8 million. The company’s comparable store sales grew by 2.6%, driven primarily by an increase in customer transactions. Sales to members of Ollie’s Army loyalty program accounted for over 80% of total sales and saw a 9.2% increase in membership, totaling 15.5 million members.

During the period, Ollie’s opened 25 new stores, an increase of 13.2% versus the previous year, which included 18 former Big Lots locations. At the same time, gross margin remained flat at 41.1%, as lower supply chain costs offset decreases in merchandise margin due to changes in product mix. Selling, general and administrative (SG&A) expenses as a percentage of sales increased by 60 basis points to 28.6%, attributed primarily to higher medical and casualty claims.

Ollie’s reported an adjusted net income of $46.1 million, or $0.75 per diluted share, compared to $45.2 million, or $0.73 per share, in the same quarter of the prior year. Adjusted EBITDA reached $72.2 million, with a margin of 12.5%. The company ended the quarter with $369.5 million in cash and cash equivalents, along with $45.4 million in long-term investments, leading to a total cash and investment position of approximately $414.9 million.

For the fiscal year 2025, Ollie’s reaffirmed its earnings outlook, projecting 75 new store openings and net sales between $2.579 billion and $2.599 billion, with comparable store sales growth expected at 1.4% to 2.2%. The gross margin target remains at 40%, while operating income is anticipated to fall between $283 million and $292 million. Adjusted net income is projected to be in the range of $225 million to $232 million, translating to adjusted earnings per diluted share between $3.65 and $3.75.

Throughout the first quarter, operational challenges arising from seasonal weather impacted certain categories, contributing an estimated 150-basis-point headwind to comparable sales. Despite this, demand for consumer staples remained strong, and traffic trends indicated a strong core performance in non-seasonal categories.

Overall, Ollie’s Bargain Outlet demonstrated solid financial results in the first quarter, driven by strategic store expansions and a strong sales performance among its loyal customer base.