Ollie's Bargain Outlet Holdings, Inc. reported its financial results for the third quarter ended November 2, 2024, on December 10, 2024. The company achieved a 7.8% increase in net sales, reaching $517.4 million compared to $480.1 million in the prior year's third quarter, driven by new store unit growth.
Despite a 0.5% decrease in comparable store sales, gross profit rose by 10.5% to $214.5 million, with gross margin improving by 100 basis points to 41.4%. This margin expansion was primarily due to favorable supply chain costs, partially offset by a higher mix of consumables impacting merchandise margin.
Diluted earnings per share increased by 13.7% to $0.58, up from $0.51 in the third quarter of fiscal 2023. The company also reported a 14.0% increase in operating income to $44.5 million. Ollie's ended the quarter with $303.9 million in cash and short-term investments and no outstanding borrowings on its $100 million revolving credit facility.
The company repurchased 169,359 shares of its common stock for $15.8 million during the quarter, with $38.4 million remaining under its current share repurchase program. Ollie's also provided an updated fiscal 2024 outlook, projecting net sales between $2.279 billion and $2.289 billion, and adjusted diluted EPS between $3.20 and $3.25, reflecting a slight adjustment to comparable store sales expectations to 1.0% to 1.5%.
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