Ollie's’s Q2 Earnings Call: Our Top 5 Analyst Questions

September 04, 2025 at 01:32 AM EDT

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Ollie’s Q2 results reflected strong execution in new store openings and customer engagement, supported by disruption in the broader retail sector. Management highlighted accelerated unit growth and enhanced loyalty programs as primary drivers for the quarter, with the Ollie’s Army initiative boosting both membership and sales. President and CEO Eric van der Valk credited the company’s ability to capitalize on retail bankruptcies and supply chain improvements, noting, “Our model thrives on disruption. Tariffs have created uncertainty in the market, which is disruptive. This has resulted in additional buying opportunities.” Demand for staples and seasonal products, paired with operational efficiencies, contributed meaningfully to quarterly performance.

Is now the time to buy OLLI? Find out in our full research report (it’s free).

Ollie's (OLLI) Q2 CY2025 Highlights:

Revenue: $679.6 million vs analyst estimates of $661.9 million (17.5% year-on-year growth, 2.7% beat)
Adjusted EPS: $0.99 vs analyst estimates of $0.93 (6.8% beat)
Adjusted EBITDA: $93.79 million vs analyst estimates of $87.36 million (13.8% margin, 7.4% beat)
The company lifted its revenue guidance for the full year to $2.64 billion at the midpoint from $2.59 billion, a 1.9% increase
Management raised its full-year Adjusted EPS guidance to $3.80 at the midpoint, a 2.7% increase
Operating Margin: 11.3%, in line with the same quarter last year
Locations: 613 at quarter end, up from 525 in the same quarter last year
Same-Store Sales rose 5% year on year, in line with the same quarter last year
Market Capitalization: $7.89 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Ollie's’s Q2 Earnings Call

Matthew Robert Boss (JPMorgan) asked how recent disruption in the closeout market impacted deal flow, and CEO Eric van der Valk explained that tariffs and retail bankruptcies have created additional buying opportunities, resulting in strong inventory growth.
Peter Jacob Keith (Piper Sandler) inquired about the Ollie’s Army event’s impact on new member acquisition, and van der Valk confirmed record customer engagement and sign-ups, with CFO Robert Helm noting sales exceeded expectations without margin dilution.
Charles P. Grom (Gordon Haskett) questioned future store growth and earnings power, and van der Valk reiterated commitment to double-digit annual unit growth, while Helm stated that recent store openings and improving cost trends should support earnings growth into next year.
Steven Emanuel Zaccone (Citi) asked about new store performance and distribution needs, with Helm reporting strong economics and consistent payback periods, and van der Valk indicating plans to expand existing distribution centers to support up to 800 stores.
Katharine Amanda McShane (Goldman Sachs) probed customer acquisition trends, and Helm highlighted increased sign-ups among younger and higher-income customers, attributing this to the company’s digital strategy and trade-down appeal.

Catalysts in Upcoming Quarters

Looking at the remainder of the year, the StockStory team will be watching (1) the pace and performance of new store openings, especially those in recently acquired locations from bankrupt retailers, (2) the impact of further enhancements to the Ollie’s Army loyalty program on sales growth and customer retention, and (3) Ollie’s ability to maintain gross margin improvements amid ongoing supply chain and tariff disruptions. Progress on distribution center expansions will also be a key marker for scaling future growth.

Ollie's currently trades at $126, down from $130.70 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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Ollie's’s Q2 Earnings Call: Our Top 5 Analyst Questions

Ollie's (OLLI) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Ollie's’s Q2 Earnings Call

Catalysts in Upcoming Quarters

Our Favorite Stocks Right Now

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