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Ollie's Bargain Outlet Holdings, Inc. Announces First Quarter Fiscal 2025 Results

1. OLLI opened 25 new stores, increasing total to 584. 2. Net sales rose 13.4% to $576.8 million. 3. Comparable store sales increased by 2.6% due to more transactions. 4. Reaffirmed fiscal 2025 earnings outlook despite market conditions. 5. Cash reserves increased by 21.5%, totaling $414.9 million.

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OLLI's strong sales growth and new store openings may positively influence stock performance. Historically, sustained growth in sales correlates with rising share prices.

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The article provides critical financial metrics and management outlook that can influence investor sentiment and stock market performance.

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Immediate positive impact expected as investors respond to recent performance and outlook. Prior instances show market reaction within days after similar announcements.

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Opened 25 New Stores Net Sales Increased 13.4% and Comparable Store Sales Increased 2.6% Earnings Per Share Ahead of Expectations Reaffirming Fiscal 2025 Earnings Outlook HARRISBURG, Pa., June 03, 2025 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today announced financial results for the first quarter ended May 3, 2025 (fiscal 2025). “We had a strong first quarter, highlighted by accelerated store growth and better than expected sales and earnings,” said Eric van der Valk, President and Chief Executive Officer. “As consumers seek out value and the current environment weighs on retailers and suppliers, we believe we are well positioned to benefit and continue to serve our customers with amazing deals. Our unique operating model gives us a ton of flexibility when it comes to navigating a choppy environment, and this puts us in a very strong position versus most retailers.”   Quarter ended  May 3, May 4,  2025 2024(Dollars in thousands, except per share data)    Net sales $576,767  $508,818 Yr/yr change  13.4%  10.8%Comparable store sales change (1)  2.6%  3.0%Net income $47,560  $46,342 Net income per diluted share $0.77  $0.75 Adjusted net income per diluted share $0.75  $0.73 Yr/yr change  2.7%  49.0%Adjusted EBITDA $72,159  $69,431 % of net sales  12.5%  13.6%New store openings (2)  25   4 Store growth, yr/yr change  13.2%  8.4%     (1) Comparable store sales are calculated based on the comparable number of weeks from the prior year.(2) New store openings is a gross number that does not include any store closures in the period.  First Quarter Highlights Opened 25 new stores, including 18 former Big Lots locations acquired through bankruptcy auction, and ended the quarter with a total of 584 stores in 32 states, an increase of 13.2% year over year.Net sales increased 13.4% to $576.8 million, driven by new store unit growth and an increase in comparable store sales.Comparable store sales increased 2.6%, driven by an increase in transactions.Ollies Army loyalty members increased 9.2% to more than 15.5 million.Gross margin was flat at 41.1%. Lower supply chain costs were offset by lower merchandise margin driven by changes in mix.SG&A expenses as a percentage of sales increased 60 basis points to 28.6%, driven primarily by higher medical and casualty claims.Pre-opening expenses increased $3.9 million to $6.7 million, driven by new store growth, and included $1.8 million of dark rent associated with the bankruptcy acquired stores.Adjusted net income per diluted share was $0.75.Adjusted EBITDA(1) was $72.2 million and adjusted EBITDA margin(1) was 12.5%.Cash, cash equivalents and short-term investments were $369.5 million, with an additional $45.4 million in long-term investments, for a total cash and investment position of $414.9 million, an increase of 21.5% year over year.The Company invested $17.1 million of cash to repurchase 159,757 shares of its common stock. At the end of the first quarter, $315.5 million remained available for future share repurchases under the current share repurchase authorization. Fiscal 2025 Outlook The Company is reaffirming its previously provided earnings outlook for fiscal 2025. This earnings outlook assumes the current tariffs remain in place for the balance of the year and is summarized in the table below.  Current PreviousNew store openings75 75Net sales$2.579 to $2.599 billion $2.564 to $2.586 billionComparable store sales increase1.4% to 2.2% 1.0% to 2.0%Gross margin40% 40%Operating income(1)$283 to $292 million $283 to $292 millionAdjusted net income(1)(2)(3)$225 to $232 million $225 to $232 millionAdjusted net income per diluted share(1)(2)(3)$3.65 to $3.75 $3.65 to $3.75Annual effective tax rate (excludes excess tax benefits related to stock-based compensation)25% 25%Diluted weighted average shares outstanding62 million 62 millionCapital expenditures$83 to $88 million $83 to $88 million     (1) The earnings outlook noted above includes dark rent expenses of approximately $5 million, or $0.06 in adjusted earnings per share, included within pre-opening expenses resulting from the Company’s acquisition of leases of former Big Lots stores. (2) The outlook ranges as provided for adjusted net income and adjusted net income per diluted share exclude the excess tax benefits related to stock-based compensation as the Company cannot predict such estimates without unreasonable effort.(3) The earnings outlook noted above includes interest income of approximately $17 million. This assumes the potential for lower interest rates in fiscal 2025. Conference Call Information A conference call to discuss first quarter fiscal 2025 financial results is scheduled for today, June 3, 2025, at 8:30 a.m. Eastern Time. To access the live conference call, please pre-register here. Registrants will receive a confirmation with dial-in instructions. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at https://investors.ollies.com/. A replay of the conference call webcast will be available at the investor relations website for one year. About Ollie’s We are America’s largest retailer of closeout merchandise and excess inventory, offering Real Brands and Real Bargain prices®! We offer extreme value on brand name products in a variety of departments, including housewares, food, books and stationery, bed and bath, floor coverings, toys, health and beauty aids, and more. As of May 3, 2025, we operated 584 stores in 32 states and growing! For more information, visit www.ollies.com. Non-GAAP Reconciliation The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), adjusted net income (loss) per diluted share, and adjusted operating income (loss) are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business. Please refer to the “Reconciliation of Non-GAAP Financial Information to GAAP” later in this press release, which sets forth the non-GAAP operating adjustments for the 13-week periods ended May 3, 2025 and May 4, 2024. Forward-Looking Statements This press release contains certain forward-looking statements, including statements regarding industry trends, value creation, customer trends, new stores, distribution centers, financial guidance for second quarter 2025 and fiscal 2025, including new store openings, net sales, comparable store sales, gross margin, SG&A, operating income, net income, adjusted net income, adjusted net income per diluted share, effective tax rate, diluted weighted average shares outstanding and capital expenditures. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “could”, “may”, “might”, “will,” “likely”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “expects”, “continues”, “projects”, “forecasts”, and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to factors outside of our control. These factors include, without limitation, the impact of the recent tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Investor Contact John RouleauManaging Director of Corporate Communication & Business DevelopmentJRouleau@ollies.us Media Contact Tom KuypersSenior Vice President – Marketing & Advertising717-657-2300 tkuypers@ollies.us  Ollie’s Bargain Outlet Holdings, Inc.Condensed Consolidated Statements of Income (unaudited)(In thousands except for per share amounts)   Quarter ended  May 3, May 4,  2025 2024     Net sales $576,767  $508,818 Cost of sales  339,736   299,460 Gross profit  237,031   209,358 Selling, general and administrative expenses  164,832   142,419 Depreciation and amortization expenses  9,357   7,716 Pre-opening expenses  6,656   2,726 Operating income  56,186   56,497 Interest (income), net  (4,788)  (4,301)Income before income taxes  60,974   60,798 Income tax expense  13,414   14,456 Net income $47,560  $46,342 Earnings per common share:    Basic $0.78  $0.76 Diluted $0.77  $0.75 Weighted average common shares outstanding:    Basic  61,343   61,380 Diluted  61,816   61,739      Percentage of net sales:    Net sales  100.0%  100.0%Cost of sales  58.9   58.9 Gross profit  41.1   41.1 Selling, general and administrative expenses  28.6   28.0 Depreciation and amortization expenses  1.6   1.5 Pre-opening expenses  1.2   0.5 Operating income  9.7   11.1 Interest (income), net  (0.8)  (0.8)Income before income taxes  10.6   11.9 Income tax expense  2.3   2.8 Net income  8.2%  9.1%     Components may not add to totals due to rounding.      Ollie’s Bargain Outlet Holdings, Inc.Condensed Consolidated Balance Sheets (unaudited)(In thousands)       May 3, May 4,Assets 2025 2024Current assets:    Cash and cash equivalents $199,018  $212,250 Short-term investments  170,490   129,250 Inventories  611,852   527,469 Accounts receivable  2,348   916 Prepaid expenses and other current assets  14,313   8,897 Total current assets  998,021   878,782 Property and equipment, net  346,151   282,669 Operating lease right-of-use assets  639,664   472,525 Goodwill  444,850   444,850 Trade name  230,559   230,559 Long-term investments  45,355   - Other assets  2,379   2,083 Total assets $2,706,979  $2,311,468 Liabilities and Stockholders’ Equity    Current liabilities:    Current portion of long-term debt $566  $599 Accounts payable  137,869   103,495 Income taxes payable  14,364   29,227 Current portion of operating lease liabilities  99,767   89,607 Accrued expenses and other current liabilities  95,238   87,864 Total current liabilities  347,804   310,792 Revolving credit facility  -   - Long-term debt  925   1,077 Deferred income taxes  81,006   71,628 Long-term portion of operating lease liabilities  547,431   395,547 Total liabilities  977,166   779,044 Stockholders’ equity:    Common stock  68   67 Additional paid-in capital  739,333   697,816 Retained earnings  1,415,273   1,214,293 Treasury - common stock  (424,861)  (379,752)Total stockholders’ equity  1,729,813   1,532,424 Total liabilities and stockholders’ equity $2,706,979  $2,311,468   Ollie’s Bargain Outlet Holdings, Inc.Condensed Consolidated Statements of Cash Flows (unaudited)(In thousands)   Quarter ended  May 3, May 4,  2025 2024Net cash provided by operating activities $28,702  $40,184 Net cash used in investing activities  (18,266)  (68,515)Net cash used in financing activities  (16,541)  (25,681)Net decrease in cash and cash equivalents  (6,105)  (54,012)Cash and cash equivalents, beginning of the period  205,123   266,262 Cash and cash equivalents, end of the period $199,018  $212,250   Ollie’s Bargain Outlet Holdings, Inc.Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)(In thousands except for per share amounts)   Quarter ended  May 3, May 4,  2025 2024     Net income $47,560  $46,342 Excess tax benefits related to stock-based compensation (1) (1,487)  (1,132)Adjusted net income $46,073  $45,210      Net income per diluted share $0.77  $0.75 Adjustments as noted above, per dilutive share:    Excess tax benefits related to stock-based compensation (1)  (0.02)  (0.02)Adjusted net income per diluted share $0.75  $0.73      Diluted weighted-average common shares outstanding  61,816   61,739      Net income $47,560  $46,342 Interest income, net  (4,788)  (4,301)Depreciation and amortization expenses  12,809   9,785 Income tax expense  13,414   14,456 EBITDA  68,995   66,282 Non-cash stock-based compensation expense  3,164   3,149 Adjusted EBITDA $72,159  $69,431           Components may not add to totals due to rounding.    (1) Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation.  Ollie’s Bargain Outlet Holdings, Inc.Key Statistics (unaudited)(Dollars in thousands)       Quarter ended  May 3, May 4,  2025 2024     Number of stores open at beginning of period  559   512 Number of new stores  25   4 Number of stores open at end of period  584   516 Yr/yr store growth  13.2%  8.4%     Average net sales per store (1) $1,005  $993 Comparable store count – end of period  508   466 Comparable stores sales change  2.6%  3.0%     Cash, cash equivalents, and short-term investments $369,508  $341,500 Long-term investments $45,355  $- Capital expenditures $26,740  $26,865 Share repurchases $17,107  $25,007      (1) Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for the respective periods presented.

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