Ollie's Bargain Outlet Holdings, Inc.
For the period ended Aug 1, 2026. Filed Sep 2, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 1, 2026 · Filed Sep 2, 2026
OLLI$90.40-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-05-02; filed 2026-06-03.
0001140361-26-023882
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-01; filed 2026-09-02.
0001104659-26-104755
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 103 current paragraphs.
52 unchanged; 25 reworded; 22 added; 11 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
During the second quarter of fiscal 2026, we opened 15 new stores and closed one store due to storm-related damage, compared with 29 new store openings in the second quarter of fiscal 2025. Pre-opening expenses related to these store openings were $5.2 million and $9.0 million for the second quarters of fiscal 2026 and 2025, respectively.
Current report
During the twenty-six weeks ended August 1, 2026, we opened 42 new stores and closed one store, compared with 54 new store openings during the same period in fiscal 2025. Pre-opening expenses related to these store openings were $11.6 million and $15.6 million for the twenty-six weeks ended August 1, 2026 and August 2, 2025, respectively.
Current report
Second Quarter of Fiscal 2026 Compared to Second Quarter of Fiscal 2025
Current report
SG&A expenses increased to $197.2 million in the second quarter of fiscal 2026 from $175.5 million in the second quarter of fiscal 2025, an increase of $21.7 million, or 12.4%. As a percentage of net sales, SG&A increased 80 basis points to 26.6% in the second quarter of fiscal 2026 from 25.8% in the second quarter of fiscal 2025. The increase in SG&A as a percentage of net sales was primarily driven by the deleveraging of fixed costs from the decline in comparable store sales and higher marketing expense due to the timing shift of one merchandise flyer.
Current report
Year-to-Date Fiscal 2026 Compared to Year-to-Date Fiscal 2025
Current report
Net Sales
Current report
Net sales increased to $1.400 billion in the twenty-six weeks ended August 1, 2026 from$1.256 billion in the twenty-six weeks ended August 2, 2025, an increase of $143.9 million, or 11.5%. The increase in net sales was the result of new store unit growth.
Current report
Comparable store sales were flat in the twenty-six weeks ended August 1, 2026 compared with a 3.9% increase in the twenty-six weeks ended August 2, 2025.
Current report
Gross Profit and Gross Margin
Current report
Gross profit increased to $598.1 million in the twenty-six weeks ended August 1, 2026 from$508.4 million in the twenty-six weeks ended August 2, 2025, an increase of $89.7 million, or 17.7%. Gross margin increased 220 basis points to 42.7% in the twenty-six weeks ended August 1, 2026 from 40.5% in the twenty-six weeks ended August 2, 2025. The increase in gross margin was driven by lower supply chain costs, primarily from IEEPA tariff refunds received and lower tariff rates incurred in the second quarter.
Current report
Selling, General, and Administrative Expenses
Current report
SG&A expenses increased to $385.9 million in the twenty-six weeks ended August 1, 2026 from $340.3 million in the twenty-six weeks ended August 2, 2025, an increase of $45.6 million, or 13.4%. As a percentage of net sales, SG&A increased 50 basis points to 27.6% in the twenty-six weeks ended August 1, 2026 from 27.1% in the twenty-six weeks ended August 2, 2025. The increase in SG&A as a percentage of net sales was primarily driven by the deleveraging of fixed costs from the decline in comparable store sales in the second quarter and higher marketing expense due to the timing shift of one merchandise flyer.
Current report
Pre-Opening Expenses
Current report
Pre-opening expenses decreased to $11.6 million in the twenty-six weeks ended August 1, 2026 from $15.6 million in the twenty-six weeks ended August 2, 2025, a decrease of $4.0 million, or 25.5%. The decline was primarily driven by fewer new store openings. We opened 42 stores in the twenty-six weeks ended August 1, 2026, compared with 54 stores in the prior-year period. As a percentage of net sales, pre-opening expenses decreased to 0.8% in the twenty-six weeks ended August 1, 2026 compared to 1.2% in the twenty-six weeks ended August 2, 2025.
Current report
Interest Income, Net
Current report
Interest income, net increased to $11.1 million in the twenty-six weeks ended August 1, 2026 from $9.3 million in the twenty-six weeks ended August 2, 2025. The increase was primarily due to tariff interest received in the second quarter and higher investment balances, partially offset by lower interest rates.
Current report
Income Tax Expense
Current report
Net Income
Current report
As a result of the foregoing, net income increased to $141.9 million in the twenty-six weeks ended August 1, 2026 from $108.9 million in the twenty-six weeks ended August 2, 2025, an increase of $33.0 million or 30.3%.
Current report
Adjusted EBITDA
Current report
Adjusted EBITDA increased to $215.0 million in the twenty-six weeks ended August 1, 2026 from $165.9 million in the twenty-six weeks ended August 2, 2025, an increase of $49.0 million, or 29.6%.
Current report
In December 2020, our Board of Directors authorized a share repurchase program, which has subsequently been increased and extended from time to time. Through August 1, 2026, our Board had authorized an aggregate of $700.0 million for share repurchases under the program. The current authorization is effective through March 31, 2029.
Removed paragraphs (11)
Previous report
Index
Previous report
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Previous report
We opened 27 new stores in the first quarter of fiscal 2026 and opened 25 new stores in the first quarter of fiscal 2025. In connection with these store openings, we incurred expenses of $6.4 million and $6.7 million in the respective periods.
Previous report
Index
Previous report
Index
Previous report
First Quarter of Fiscal 2026 Compared to First Quarter of Fiscal 2025
Previous report
SG&A increased to $188.7 million in the first quarter of fiscal 2026 from $164.8 million in the first quarter of fiscal 2025, an increase of $23.9 million, or 14.5%, driven by higher selling expenses primarily related to new store growth. As a percentage of net sales, SG&A remained flat at 28.6% in the first quarter of fiscal 2026 and 2025, respectively.
Previous report
Index
Previous report
Index
Previous report
Index
Reworded paragraphs (25)
Previous wording
We operate on a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday nearer to January 31 st of the following year. References to “fiscal year 2026” or “fiscal 2026” refer to the 52-week period of February 1, 2026 to January 30, 2027. References to “fiscal year 2025” or “fiscal 2025” refer to the 52-week period of February 2, 2025 to January 31, 2026. References to the “first quarter of fiscal 2026” and the “first quarter of fiscal 2025” refer to the thirteen weeks of February 1, 2026 to May 2, 2026 and February 2, 2025 to May 3, 2025, respectively. Historical results are not necessarily indicative of the results to be expected for any future period and results for any interim period may not necessarily be indicative of the results that may be expected for a full year.
Current wording
We operate on a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52-**or 53-week period ending on the Saturday nearer to January 31st* of the following year. References to “fiscal year 2026” or “fiscal 2026” refer to the 52-week period of February 1, 2026 to January 30, 2027. References to “fiscal year 2025” or “fiscal 2025” refer to the 52-week period of February 2, 2025 to January 31, 2026. References to the “second quarter of fiscal 2026” and the “second quarter of fiscal 2025” refer to the thirteen weeks of May 3, 2026 to August 1, 2026 and May 4, 2025 to August 2, 2025, respectively. Year-to-date periods ended August 1, 2026 and August 2, 2025 refer to the twenty-six weeks of February 1, 2026 to August 1, 2026 and February 2, 2025 to August 2, 2025, respectively. Historical results are not necessarily indicative of the results to be expected for any future period and results for any interim period may not necessarily be indicative of the results that may be expected for a full year.*
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects,” and similar references to future periods, prospects, financial performance, and industry outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, capital market conditions, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market, and regulatory conditions, including, but not limited to, supply chain challenges, legislation, national trade policy, and the following: our failure to adequately procure and manage our inventory, anticipate consumer demand, or achieve favorable product margins; changes in consumer confidence and spending; risks associated with our status as a “brick and mortar” only retailer; risks associated with intense competition; our failure to open new profitable stores, or successfully enter new markets, on a timely basis or at all; fluctuations in comparable store sales and results of operations, including on a quarterly basis; factors such as inflation, cost increases, and energy prices; the risks associated with doing business with international manufacturers and suppliers including, but not limited to, potential increases or changes in tariffs on imported goods; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to properly hire and to retain key personnel and other qualified personnel; changes in market levels of wages; risks associated with cybersecurity events, and the timely and effective deployment, protection, and defense of computer networks and other electronic systems, including e-mail; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop, open and operate, or the loss of, disruption or interruption in the operations of, any of our centralized distribution centers; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for adverse outcomes; our inability to successfully develop or implement our marketing, advertising, and promotional efforts; the seasonal nature of our business; risks associated with natural disasters, w…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects,” and similar references to future periods, prospects, financial performance, and industry outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, capital market conditions, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market, and regulatory conditions, including, but not limited to, supply chain challenges, legislation, national trade policy, and the following: our failure to adequately procure and manage our inventory, anticipate consumer demand, or achieve favorable product margins; changes in consumer confidence and spending; risks associated with our status as a “brick and mortar” only retailer; risks associated with intense competition; our failure to open new profitable stores, or successfully enter new markets, on a timely basis or at all; fluctuations in comparable store sales and results of operations, including on a quarterly basis; factors such as inflation, cost increases, and energy prices; the risks associated with doing business with international manufacturers and suppliers including, but not limited to, potential increases or changes in tariffs on imported goods; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to properly hire and to retain key personnel and other qualified personnel; changes in market levels of wages; risks associated with cybersecurity events, and the timely and effective deployment, protection, and defense of computer networks and other electronic systems, including e-mail; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop, open and operate, or the loss of, disruption or interruption in the operations of, any of our centralized distribution centers; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for adverse outcomes; our inability to successfully develop or implement our marketing, advertising, and promotional efforts; the seasonal nature of our business; risks associated with natural disasters, w…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Our primary point of differentiation against other retailers is the pricing of our products. Our goal is to be the lowest priced retailer of any product offered by our stores. We believe our flexible business model, opportunistic buying strategy, low cost structure, experienced merchant team with deep relationships across the vendor community, and long history of experience of buying and selling closeout merchandise and excess inventory differentiates us from traditional retailers.
Current wording
Our primary point of differentiation against other retailers is the pricing of our products. Our goal is to be the lowest- priced retailer of any product offered by our stores. We believe our flexible business model, opportunistic buying strategy, low-cost structure, experienced merchant team with deep relationships across the vendor community, and extensive experience of buying and selling closeout merchandise and excess inventory differentiate us from traditional retailers.
Previous wording
Since the founding of Ollie’s in 1982, our principal growth strategy has been the opening of new stores. Historically, we have expanded our store base by opening new stores organically. More recently, we have expanded our store base through acquiring former store locations of bankrupt retailers through the bankruptcy auction process. Our growth strategy continuously evaluates the best opportunities in the marketplace and combines organic new store openings with the acquisition of store locations. We follow a contiguous unit growth strategy that combines backfilling existing markets and states with entering new markets and states in a contiguous manner. As of May 2, 2026 we have grown to 672 stores in 35 states.
Current wording
Since the founding of Ollie’s in 1982, our principal growth strategy has been the opening of new stores. Historically, we have expanded our store base by opening new stores organically. In fiscal 2024 and fiscal 2025, we expanded our store base by acquiring former store locations of bankrupt retailers through the bankruptcy auction process. Our growth strategy continuously evaluates the best opportunities in the marketplace and combines organic new store openings with the acquisition of store locations. We follow a contiguous unit growth strategy that combines backfilling existing markets and states with entering new markets and states in a contiguous manner. As of August 1, 2026 we operated 686 stores in 36 states.
Previous wording
Comparable store sales measure performance of a store during the current reporting period against the performance of the same store in the corresponding period of the previous year. Comparable store sales consist of net sales from our stores beginning on the first day of the sixteenth full fiscal month following the store’s opening, which is when we believe comparability is achieved. Stores that remain open during a remodel or refresh process, stores that are relocated within the same trade area, and stores that changed in size are generally classified in the same way as the original store, and we believe that the impact to our change in consolidated comparable store sales percentage is immaterial. Comparable store sales are also referred to as “same-store” sales by other retail companies.
Current wording
Comparable store sales measure performance of a store during the current reporting period against the performance of the same store in the corresponding period of the previous year. Comparable store sales consist of net sales from our stores beginning on the first day of the sixteenth full fiscal month following the store’s opening, which is when we believe comparability is achieved. Stores that remain open during a remodel or refresh process, stores that are relocated within the same trade area, and stores that changed in size are generally classified in the same way as the original store, and we believe that their impact on the percentage change in consolidated comparable store sales is immaterial. Comparable store sales are also referred to as “same-store” sales by other retail companies.
Previous wording
Gross profit is equal to our net sales less our cost of sales. Included in cost of sales are: merchandise costs, inventory markdowns, inventory shrinkage and transportation, distribution, and warehousing costs, including wages, benefits, and depreciation and amortization.
Current wording
Gross profit is equal to our net sales less our cost of sales. Cost of sales includes: merchandise costs, inventory markdowns, inventory shrinkage and tariff, transportation, distribution, and warehousing costs, including wages, benefits, and depreciation and amortization.
Previous wording
The method of calculating comparable store sales, gross profit, SG&A and pre-opening expenses varies across the retail industry. As a result, our calculation of these items may not necessarily be compatible with similarly titled measures reported by other retail companies.
Current wording
The method of calculating comparable store sales, gross profit, SG&A and pre-opening expenses varies across the retail industry. As a result, our calculation of these items may not be comparable to similarly titled measures reported by other retail companies.
Previous wording
In February 2026, the U.S. Supreme Court issued a ruling that certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”) were invalid, and in March 2026, the U.S. Court of International Trade ruled that the U.S. Customs and Border Protection (“CBP”) must refund duties imposed under IEEPA. In April 2026, the CBP launched a platform for submitting IEEPA tariff refund claims. As of May 2, 2026, we had not recognized the effect of any potential tariff refunds, as the timing and amount of any potential refunds for previously collected tariffs remains uncertain and may be subject to further legal and regulatory developments. We will continue to monitor these developments and their potential impact on our financial position, results of operations, and cash flows.
Current wording
In February 2026, the U.S. Supreme Court issued a ruling that certain tariffs previously imposed under IEEPA were invalid, and in March 2026, the U.S. Court of International Trade ruled that the CBP must refund duties imposed under IEEPA. In April 2026, the CBP launched a platform for submitting IEEPA tariff refund claims. During the second quarter of fiscal 2026, we received $29.4 million in tariff refunds, of which $28.3 million was included in cost of sales and $1.1 million was included in interest income.
Previous wording
We derived the condensed consolidated statements of income for the first quarter of fiscal 2026 and the first quarter of fiscal 2025 from our unaudited condensed consolidated financial statements and related notes. Our historical results are not necessarily indicative of the results that may be expected in the future.
Current wording
We derived the condensed consolidated statements of income for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 from our unaudited condensed consolidated financial statements and related notes. Our historical results are not necessarily indicative of the results that may be expected in the future.
Previous wording
Net sales increased to $658.9 million in the first quarter of fiscal 2026 from $576.8 million in the first quarter of fiscal 2025, an increase of $82.1 million, or 14.2%. The increase in net sales was the result of new store unit growth and a comparable store sales increase of 1.7%.
Current wording
Net sales increased to $741.3 million in the second quarter of fiscal 2026 from$679.6 million in the second quarter of fiscal 2025, an increase of $61.7 million, or 9.1%. The increase in net sales was the result of new store unit growth, partially offset by a comparable store sales decrease of 1.8%.
Previous wording
Comparable store sales increased 1.7% in the first quarter of fiscal 2026 compared with a 2.6% increase in the first quarter of fiscal 2025. The increase in comparable store sales in the first quarter of fiscal 2026 was driven by an increase in basket size.
Current wording
Comparable store sales decreased 1.8% in the second quarter of fiscal 2026 compared with a 5.0% increase in the second quarter of fiscal 2025. The decrease in comparable store sales in the second quarter of fiscal 2026 was driven by a decrease in basket size.
Previous wording
Gross profit increased to $276.0 million in the first quarter of fiscal 2026 from $237.0 million in the first quarter of fiscal 2025, an increase of $39.0 million, or 16.4%. Gross margin increased 80 basis points to 41.9% in the first quarter of fiscal 2026 from 41.1% in the first quarter of fiscal 2025. The increase in gross margin was driven by lower supply chain costs and a modest increase in merchandise margin.
Current wording
Gross profit increased to $322.2 million in the second quarter of fiscal 2026 from$271.3 million in the second quarter of fiscal 2025, an increase of $50.8 million, or 18.7%. Gross margin increased 360 basis points to 43.5% in the second quarter of fiscal 2026 from 39.9% in the second quarter of fiscal 2025. The increase in gross margin was driven by lower supply chain costs, primarily from IEEPA tariff refunds received and lower tariff rates incurred in the period.
Previous wording
Pre-opening expenses decreased to $6.4 million in the first quarter of fiscal 2026 from $6.7 million in the first quarter of fiscal 2025, a decrease of $0.3 million, or 3.2%. The decrease was primarily driven by lower dark rent expense associated with the bankruptcy acquired stores, partially offset by an increase in store openings. In the first quarter of fiscal 2026, we incurred rent expense on 24 bankruptcy acquired stores, compared with 66 such stores in the first quarter of fiscal 2025, and these stores carry higher levels of dark rent. We opened 27 stores in the first quarter of fiscal 2026, compared to 25 stores in the first quarter of fiscal 2025. As a percentage of net sales, pre-opening expenses decreased to 1.0% in the first quarter of fiscal 2026 compared to 1.2% in the first quarter of fiscal 2025.
Current wording
Pre-opening expenses decreased to $5.2 million in the second quarter of fiscal 2026 from $9.0 million in the second quarter of fiscal 2025, a decrease of $3.8 million, or 42.0%. The decline was primarily driven by fewer new store openings. We opened 15 stores in the second quarter of fiscal 2026, compared with 29 stores in the prior-year period. As a percentage of net sales, pre-opening expenses decreased to 0.7% in the second quarter of fiscal 2026 compared to 1.3% in the second quarter of fiscal 2025.
Previous wording
Interest income, net was $5.0 million in the first quarter of fiscal 2026 compared with $4.8 million in the first quarter of fiscal 2025. The increase is primarily due to higher average cash and cash equivalent and investments balances, partially offset by lower interest rates.
Current wording
Interest income, net was $6.1 million in the second quarter of fiscal 2026 compared with $4.5 million in the second quarter of fiscal 2025. The increase was primarily due to tariff interest received in the quarter and higher investment balances, partially offset by lower interest rates.
Previous wording
Income tax expense in the first quarter of fiscal 2026 was $18.1 million compared to $13.4 million in the first quarter of fiscal 2025. The effective tax rates for the first quarters of fiscal 2026 and fiscal 2025 were 24.3% and 22.0%, respectively. The change in the effective income tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, and the expiration of the Work Opportunity Tax Credit.
Current wording
Income tax expense in the second quarter of fiscal 2026 was $29.2 million compared to $20.2 million in the second quarter of fiscal 2025. The effective tax rates for the second quarters of fiscal 2026 and fiscal 2025 were 25.4% and 24.8%, respectively. The change in the effective income tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation and the expiration of the Work Opportunity Tax Credit.
Previous wording
As a result of the foregoing, net income increased to $56.4 million in the first quarter of fiscal 2026 from $47.6 million in the first quarter of fiscal 2025, an increase of $8.8 million or 18.6%.
Current wording
As a result of the foregoing, net income increased to $85.5 million in the second quarter of fiscal 2026 from $61.3 million in the second quarter of fiscal 2025, an increase of $24.2 million or 39.4%.
Previous wording
Adjusted EBITDA increased to $87.9 million in the first quarter of fiscal 2026 from $72.2 million in the first quarter of fiscal 2025, an increase of $15.7 million, or 21.8%.
Current wording
Adjusted EBITDA increased to $127.1 million in the second quarter of fiscal 2026 from $93.8 million in the second quarter of fiscal 2025, an increase of $33.3 million, or 35.5%.
Previous wording
Our primary sources of liquidity are net cash flows provided by operating activities and available borrowings under our $100.0 million Revolving Credit Facility. Our primary cash needs are for capital expenditures and working capital. As of May 2, 2026, we had $89.6 million available to borrow under our Revolving Credit Facility and $249.6 million of cash and cash equivalents and short-term investments on hand. For further information regarding our Revolving Credit Facility, see Note 7 under “Notes to Unaudited Condensed Consolidated Financial Statements.”
Current wording
Our primary sources of liquidity are net cash flows provided by operating activities and available borrowings under our $100.0 million Revolving Credit Facility. Our primary cash needs are for capital expenditures and working capital. As of August 1, 2026, we had $88.4 million available to borrow under our Revolving Credit Facility and $187.5 million of cash and cash equivalents and short-term investments on hand. For further information regarding our Revolving Credit Facility, see Note 7 under “Notes to Unaudited Condensed Consolidated Financial Statements.”
Previous wording
Our capital expenditures are primarily related to new store openings, lease acquisitions and related build-out costs, store resets, which consist of improvements to stores as they are needed, expenditures related to our distribution centers, and infrastructure-related investments, including investments related to upgrading and maintaining our information technology systems. We spent $25.5 million and $26.7 million for capital expenditures during the first quarters of fiscal 2026 and fiscal 2025, respectively. We opened 27 new stores during the first quarter of fiscal 2026 and opened 25 new stores during the first quarter of fiscal 2025.
Current wording
Our capital expenditures are primarily related to new store openings, lease acquisitions and related build-out costs, store resets, which consist of improvements to stores as they are needed, expenditures related to our distribution centers, and infrastructure-related investments, including investments related to upgrading and maintaining our information technology systems. We spent $43.3 million and $26.4 million for capital expenditures during the second quarters of fiscal 2026 and fiscal 2025, respectively. For the twenty-six weeks ended August 1, 2026, we spent $68.8 million for capital expenditures compared to $53.2 million for the twenty-six weeks ended August 2, 2025. We opened 15 new stores during the second quarter of fiscal 2026 and opened 29 new stores during the second quarter of fiscal 2025.
Previous wording
Capital expenditures in fiscal 2026 are planned to be approximately $103 to $113 million, primarily for the opening of 75 new stores, store-level initiatives at our existing stores, the expansion of two existing distribution centers, as well as general corporate capital expenditures, including information technology. We have experienced, and may continue to experience, delays in construction and permitting of new stores and other projects.
Current wording
Capital expenditures in fiscal 2026 are planned to be approximately $103 to $113 million, primarily for the opening of 75 new stores, store-level initiatives at our existing stores, the expansion of one existing distribution center, as well
Previous wording
In December 2020, our Board of Directors authorized common stock repurchases under a share repurchase program. The authorized amount of the program, which has been increased from time to time, is authorized for up to $700.0 million of the Company’s stock as of May 2, 2026. The share repurchase program is effective through March 31, 2029. The shares to be repurchased may be purchased from time to time in open market conditions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issuer self-tender offers or any combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of our shares, general market, economic and business conditions, and other corporate considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which could allow us to purchase our shares during periods when we otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. Repurchases are expected to be funded from cash on hand or through the utilization of our Revolving Credit Facility. The repurchase authorization does not require the purchase of a specific number of shares and is subject to suspension or termination by our Board at any time.
Current wording
The shares to be repurchased may be purchased from time to time in open market conditions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issuer self-tender offers or any combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of our shares, general market, economic and business conditions, and other corporate considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which could allow us to purchase our shares during periods when we otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. Repurchases are expected to be funded from cash on hand or through the utilization of our Revolving Credit Facility. The repurchase authorization does not require the purchase of a specific number of shares and is subject to suspension or termination by our Board at any time.
Previous wording
During the first quarter of fiscal 2026, we repurchased 542,486 shares of our common stock for $53.4 million, inclusive of transaction costs, pursuant to our share repurchase program. During the first quarter of fiscal 2025, we repurchased 159,757 shares of our common stock for $17.1 million, inclusive of transaction costs, pursuant to our share repurchase program. These expenditures were funded by cash generated from operations. As of May 2, 2026, we had approximately $205.4 million remaining under our share repurchase authorization. There can be no assurances that any additional repurchases will be completed, or as to the timing or amount of any repurchases.
Current wording
During the twenty-six weeks ended August 1, 2026, we repurchased 1,649,889 shares of our common stock for $137.3 million, inclusive of transaction costs, pursuant to our share repurchase program. During the twenty-six weeks ended August 2, 2025, we repurchased 257,434 shares of our common stock for $28.6 million, inclusive of transaction costs, pursuant to our share repurchase program. The repurchases were funded by cash generated from operations. As of August 1, 2026, we had approximately $121.5 million remaining under our share repurchase authorization. There can be no assurance that any additional repurchases will be completed, or as to the timing or amount of any repurchases.
Previous wording
Net cash provided by operating activities in the first quarters of fiscal 2026 and fiscal 2025 was $45.5 million and $28.7 million, respectively. Operating cash flow was positively impacted by higher net income and higher operating expense related accruals, partially offset by an increase in inventory resulting from new store growth and the timing of merchandise payments.
Current wording
Net cash provided by operating activities was $153.6 million for the twenty-six weeks ended August 1, 2026 as compared to $109.4 million for the twenty-six weeks ended August 2, 2025. Operating cash flow was positively impacted by higher net income and higher operating expense related accruals, partially offset by an increase in inventory resulting from new store growth and the timing of merchandise payments.
Previous wording
Net cash used in investing activities in the first quarters of fiscal 2026 and fiscal 2025 was $49.6 million and $18.3 million, respectively. Cash used in investing activities includes purchases of property and equipment of $25.5 million and purchases of investments, net of maturities, of $24.5 million.
Current wording
Net cash used in investing activities for the twenty-six weeks ended August 1, 2026 and August 2, 2025 was $150.7 million and $58.0 million, respectively. Cash used in investing activities includes capital expenditures of $68.8 million and purchases of investments, net of maturities, of $82.3 million.
Previous wording
Net cash used in financing activities in the first quarters of fiscal 2026 and fiscal 2025 was $57.9 million and $16.5 million, respectively. Cash used in financing activities reflects payments of $53.4 million for the repurchase of common stock and $4.8 million for taxes related to restricted stock vestings.
Current wording
Net cash used in financing activities for the twenty-six weeks ended August 1, 2026 and August 2, 2025 was $141.9 million and $25.4 million, respectively. Cash used in financing activities reflects payments of $137.3 million for the repurchase of common stock and $4.9 million for taxes related to restricted stock vestings.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
**ITEM 2.**Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.
Current report — wording carried from elsewhere
Income tax expense in the twenty-six weeks ended August 1, 2026 was $47.3 million compared to $33.6 million in the twenty-six weeks ended August 2, 2025. The effective tax rates for the twenty-six weeks ended August 1, 2026 and August 2, 2025 were 25.0% and 23.6%, respectively. The change in the effective income tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation and the expiration of the Work Opportunity Tax Credit.
Current report — wording carried from elsewhere
as general corporate capital expenditures, including information technology. We have experienced, and may continue to experience, delays in construction and permitting of new stores and other projects.