Discount retail company Ollie’s Bargain Outlet (NASDAQ: OLLI) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 9.1% year on year to $741.3 million. The company’s full-year revenue guidance of $2.93 billion at the midpoint came in 0.8% below analysts’ estimates. Its non-GAAP profit of $1.42 per share was 26.5% above analysts’ consensus estimates.
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Ollie's (OLLI) Q2 CY2026 Highlights:
- Revenue: $741.3 million vs analyst estimates of $750 million (9.1% year-on-year growth, 1.2% miss)
- Adjusted EPS: $1.42 vs analyst estimates of $1.12 (26.5% beat)
- Adjusted EBITDA: $127.1 million vs analyst estimates of $103.6 million (17.1% margin, 22.7% beat)
- The company dropped its revenue guidance for the full year to $2.93 billion at the midpoint from $2.99 billion, a 1.9% decrease
- Management raised its full-year Adjusted EPS guidance to $4.61 at the midpoint, a 2.4% increase
- Operating Margin: 14.6%, up from 11.3% in the same quarter last year
- Free Cash Flow Margin: 8.7%, similar to the same quarter last year
- Locations: 686 at quarter end, up from 613 in the same quarter last year
- Same-Store Sales fell 1.8% year on year (5% in the same quarter last year)
- Market Capitalization: $4.37 billion
Mr. van der Valk continued, “Consumers continue to seek value and many of the same pressures affecting our customers are creating buying opportunities across the closeout market. We continue to see strong deal flow and remain committed to reinvesting in price and strengthening our competitive position. With a flexible business model, deep vendor relationships, growing scale, and a talented team, we believe Ollie's is well positioned to deliver long-term profitable growth through any retail environment.”
Company Overview
Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $2.79 billion in revenue over the past 12 months, Ollie's is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores.
As you can see below, Ollie’s 12.9% annualized revenue growth over the last three years was solid as it opened new stores and increased sales at existing, established locations.
This quarter, Ollie’s revenue grew by 9.1% year on year to $741.3 million, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 12.2% over the next 12 months, similar to its three-year rate. This projection is eye-popping and suggests the market is forecasting success for its products.
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Store Performance
Number of Stores
The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow.
Ollie's sported 686 locations in the latest quarter. Over the last two years, it has opened new stores at a rapid clip by averaging 13.5% annual growth, among the fastest in the consumer retail sector. This gives it a chance to scale into a mid-sized business over time.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Same-Store Sales
The change in a company’s store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket).
Ollie’s demand rose over the last two years and slightly outpaced the industry. On average, the company’s same-store sales have grown by 2.1% per year. This performance gives it the confidence to meaningfully expand its store base.
In the latest quarter, Ollie’s same-store sales fell by 1.8% year on year. This decline was a reversal from its historical levels.
Key Takeaways from Ollie’s Q2 Results
We were impressed by how significantly Ollie's blew past analysts’ gross margin expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue slightly missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, we think this was a mixed quarter. The stock traded up 5.4% to $76.22 immediately following the results.
Ollie's had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
