Raise the roof, Ollie’s Bargain Outlet (NASDAQ: OLLI) gains on earnings beat, raised outlook

Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported first quarter results that exceeded earnings expectations and raised its full-year earnings outlook, sending shares up 5.4% premarket.

The discount retailer posted adjusted earnings per share of $0.91 for the first quarter ended May 2, beating the analyst consensus estimate of $0.87. However, revenue of $658.9 million came in slightly below the $662.3 million consensus, though it increased 14% from $576.8 million in the same quarter last year.

The company raised its fiscal 2026 adjusted EPS guidance to a range of $4.45 to $4.55, up from the previous range of $4.40 to $4.50. The midpoint of $4.50 is an increase from the prior midpoint of $4.45.

Comparable store sales rose 1.7% in the quarter, driven primarily by an increase in basket size. Gross margin expanded 80 basis points to 41.9%, exceeding expectations due to lower supply chain costs and a modest increase in merchandise margin. The company opened 27 new stores during the quarter and ended with 672 stores across 35 states, representing 15% growth.