- Store Expansion Surge Opened 32 new stores (total 645) in Q3 2025, 18% YoY increase, with 86 planned for 2025 and a 1,300-store long-term target.
- Loyalty Program Growth Ollie's Army members rose 12% to 16.6 million, with 30% YoY new membership growth and 12% customer file increase.
- Financial Performance Net sales surged 19% to $614 million, driven by 3.3% comp sales growth and SG&A expense reduction to 29.4% (50 bps decline).
- Profitability Boost Adjusted net income and EPS climbed 29% to $46 million and $0.75, respectively, with full-year EPS guidance raised to $3.81–$3.87.
- Strategic Shifts Digital marketing shift boosted October sales, while supply chain investments (Texas DC expansion +150k sq ft) support 50% capacity increase to 800 stores.
Store Expansion and Loyalty Program Growth
The company opened 32 new stores in the quarter, bringing the total to 645 stores, an 18% increase year-over-year. Ollie's Army loyalty program saw significant growth, with a 12% increase in members to 16.6 million. The company is shifting its marketing strategy to a more digital-first approach, which has shown positive results, including a significant increase in sales in October.
Valuation and Growth Prospects
With a P/E Ratio of 29.62 and an expected revenue growth rate of 16.4% next year, the company's valuation appears reasonable. The P/S Ratio is 2.61, and the EV/EBITDA is 21.03, indicating a moderate valuation. The company's ROE is 12.7%, and ROIC is 8.11%, demonstrating a decent return on equity and invested capital. As Robert F. Helm noted, "quarter-to-date trends are currently ahead of guidance," citing strength in transaction trends and a step change in AUR.
Margin Expectations and Store Performance
Ollie's guidance for gross margin is 40.3%, above their long-term algorithm of 40%. The company has seen strong new store performance, with 85% of stores opened this year beating plan. Stores in markets where Big Lots has closed continue to outperform the rest of the chain, with a low single-digit to mid-single-digit lift in sales.
Future Growth Plans
The company plans to open 86 new stores in 2025 and has a long-term target of 1,300 stores with a minimum 10% annual unit growth. With a strong pipeline of new stores and a focus on digital marketing, Ollie's is well-positioned for continued growth. The company expects to benefit from a favorable real estate environment and a step change in new store openings, driving double-digit top-line growth and mid-teens bottom-line growth in the long term.