Ollie’s Bargain Outlet Holdings, Inc. reported third‑quarter 2025 results on December 9, 2025, with net sales of $613.6 million—an 18.6% year‑over‑year increase from $517.4 million in Q3 FY2024. Earnings per share rose to $0.75, beating the consensus estimate of $0.71 by $0.04, or 5.6%. Gross margin fell to 41.3% from 41.3% in the prior year, a 10‑basis‑point decline driven by higher supply‑chain costs and tariff expenses, while operating income climbed to $55.4 million, reflecting a 9.0% operating margin that improved 40 basis points over the same period.
The revenue miss—$613.6 million versus the $615.7 million consensus—was largely attributable to incremental tariff costs and higher freight expenses that offset the company’s strong demand. Despite the shortfall, the 18.6% YoY sales growth underscores robust demand across the close‑out portfolio, and the company’s comparable store sales grew 3.3% versus a 0.5% decline in the prior year, indicating healthy store‑level performance.
EPS beat expectations because of disciplined cost management and operating leverage. Pre‑opening expenses rose 3.2% to $7.4 million, but the company’s accelerated store‑opening program and dark‑rent expense of $1.0 million were offset by higher merchandise margins and efficient inventory sourcing. The result was a 24.5% increase in operating income and a 40‑basis‑point lift in operating margin to 9.0%.
Management raised full‑year guidance, projecting revenue of $2.648–$2.655 billion—up from the prior $2.631–$2.644 billion range—and adjusted EPS of $3.81–$3.87—up from $3.76–$3.84. The upward revision reflects confidence in continued demand, the momentum of the Ollie’s Army loyalty program, and the company’s ability to control costs amid supply‑chain headwinds.
CEO Eric van der Valk said the quarter was a result of “extraordinary execution of our team,” noting record store openings, accelerated membership growth, and a widening price gap to premium retailers. He added that the company remains well positioned for the holiday season, citing expanded seasonal merchandise and competitive deals.
Investors reacted negatively to the revenue miss, with the market focusing on the shortfall despite the EPS beat and guidance raise. The negative reaction highlights the premium placed on revenue growth in the current retail environment, while the guidance increase signals management’s confidence in sustaining momentum through the holiday period and beyond.
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