Ollie’s Bargain Outlet pointed to a robust closeout environment as the retailer reported growth across the board for the second quarter ended August 4.
Net sales increased 13.1% to $288.1 million in the second quarter of fiscal 2018 from $254.6 million in the second quarter of fiscal 2017. The increase in net sales was driven by a 12.8% increase in the number of stores and a 4.4% increase in comparable store sales. The company opened six stores in the second quarter of fiscal 2018 and ended the period with 282 locations, compared to 250 stores at the end of the comparable prior year period.
Net income increased 51.4% to $29.8 million, or $0.45 per diluted share, in the second quarter of fiscal 2018 from $19.7 million, or $0.30 per diluted share, in the second quarter of fiscal 2017. Diluted earnings per share in the second quarter of fiscal 2018 and fiscal 2017 included a benefit of $0.06 and $0.03, respectively, due to excess tax benefits related to stock-based compensation. Adjusted net income, which excludes these benefits, increased 46.2% to $26.1 million, or $0.40 per diluted share, in the second quarter of fiscal 2018 from $17.8 million, or $0.27 per diluted share, in the second quarter of fiscal 2017.
Mark Butler, chairman, president and CEO of Ollie’s, said, “We are extremely pleased with our results for the quarter, which were strong across the board. We once again exceeded our sales and earnings expectations, delivering total sales growth of 13% and adjusted net income per diluted share growth of 48%. This was our 17th consecutive quarter of positive comparable store sales, with a 4.4% comparable store sales increase on top of an 8% increase on a two-year stack basis. With the continued momentum of our business and a robust closeout environment, we are raising our sales and earnings guidance for fiscal 2018. Our philosophy of buying cheap and selling cheap, coupled with tight expense control and successful new store growth, has driven our business for 36 years and we feel very good about our ability to continue executing against our strategic growth initiatives this year and beyond.”
Based on year-to-date results and expectations for the second half of fiscal 2018, Ollie’s is raising its sales and earnings guidance for the full-year fiscal 2018. The company is now estimating total net sales of $1.222 billion to $1.227 billion and comparable store sales growth of 2.5% to 3%.