Ollie's Bargain Outlet Holdings, Inc. announced its financial results for the second quarter ended August 1, 2026, reporting a 9.1% increase in net sales to $741.3 million. The company opened 15 new stores during the quarter, ending the period with 686 stores across 36 states, a 11.9% increase from the prior year.
Despite the sales growth driven by new store openings, comparable store sales decreased by 1.8%. The company attributed this decline to less favorable weather, economic pressure on consumers, and a more elevated promotional environment. Gross margin for the quarter increased by 360 basis points to 43.5%, driven by lower supply chain costs, specifically $38 million in IEEPA tariff refunds.
Net income for the quarter was $85.5 million, or $1.42 per diluted share, compared to $61.3 million, or $0.99 per diluted share, in the prior year. Adjusted net income per diluted share remained flat year-over-year at $1.42. The company reported total cash and investments of $507.1 million and invested $84.0 million to repurchase 1.107 million shares of common stock during the quarter.
Ollie's updated its fiscal 2026 outlook, projecting net sales between $2.928 billion and $2.941 billion, down from the previous range of $2.980 billion to $3.000 billion. The company also revised its expected adjusted net income to between $275 million and $279 million, with an annual effective tax rate of approximately 25%.
