Ollie’s Bargain Outlet remained bullish on its future growth plans after a strong third quarter where the retailer grew both sales and income.
Net sales increased 26.7% to $414.4 million in the third quarter of fiscal 2020 ended October 31 as compared with net sales of $327 million in the third quarter of fiscal 2019. The increase in net sales was driven by a comparable store sales increase of 15.3% and strong new store performance.
Net income increased 67.7% to $45.2 million, or $0.68 per diluted share, in the third quarter of fiscal 2020 as compared with net income of $27 million, or $0.41 per diluted share, in the third quarter of fiscal 2019.
John Swygert, president and CEO, Ollie’s, stated, “I am extremely proud of our entire team for working tirelessly during these unprecedented times and delivering another exceptional quarter. We once again demonstrated our ability to respond to opportunities in the market, resulting in strong comparable store sales growth. We opened 46 new stores this year and I am very pleased with our ability to execute these projects in a challenging environment. These stores continued to perform exceptionally well. Across the organization, we remain focused on what we do best: offering great deals and delivering great value to our customers. My heartfelt thanks goes out to the entire Ollie’s family for their dedication to ensure the continued health and safety of our customers and each other during these difficult times.”
Swygert continued, “Our inventory pipeline remains strong and we are maintaining flexibility in our open-to-buy to capture great deals. Quarter-to-date, our comparable store sales increases are tracking in the low single-digits. That said, this holiday season is subject to many uncertainties regarding the impact of the pandemic and there are a lot of large volume days still ahead of us. What we do know is that value will always be a priority for the consumer and we have a proven ability to navigate uncertain times. As always, we will tightly manage what is in our control and we feel very good about our ability to provide exciting holiday deals to our customers. Longer-term, based on our proven business model, our strong financial position and the growth opportunities in front of us, we are bullish on our ability to drive profitable growth and shareholder value into the future.”