Ollie's Bargain Outlet Holdings, Inc.
For the period ended Nov 1, 2025. Filed Dec 9, 2025.
View on SEC.govAbout this filing
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.
Nov 1, 2025 · Filed Dec 9, 2025
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 2025-08-02; filed 2025-09-03.
0001140361-25-033812
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-01; filed 2025-12-09.
0001140361-25-045024
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 125 previous paragraphs and 122 current paragraphs.
69 unchanged; 37 reworded; 16 added; 18 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 18 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 (16)
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Ollie’s is a leading off-price retailer of brand name household products. Since our founding in 1982, our mission has been to sell Good Stuff Cheap®. We do this through a flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. Our stores offer Real Brands! Real Bargains! ® in a treasure hunt environment at prices up to 70% below traditional retailers.
Current report
The size and configuration of each of our stores is different and we do not pursue a singular store prototype. Our average store size across our existing base of stores is slightly above 32,000 square feet and we operate stores ranging from 18,000 to 50,000 square feet in size. For new stores, we target a store size of approximately 30,000 square feet, an upfront cash investment of approximately $1 million, net sales of approximately $4 million, and a four-wall profit margin in the mid-teens percentage rate. The upfront cash investment target of approximately $1 million includes store fixtures and equipment, store-level and distribution center inventory (net of payables), and pre-opening expenses. For new stores where the leases were acquired through the bankruptcy process, we incur additional pre-opening costs in the form of dark rent and buildout costs.
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We opened 32 stores in the third quarter of fiscal 2025, compared to 24 store openings and three store closings in the third quarter of fiscal 2024. Of the 32 store openings, 23 were bankruptcy acquired leases.
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Third quarter of Fiscal 2025 Compared to Third quarter of Fiscal 2024
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Removed paragraphs (18)
Previous report
Ollie’s is America’s largest retailer of closeout merchandise and excess inventory. Our stores sell name brand household related items that consumers use in their everyday lives at prices that are typically 20% to 70% below traditional retailers. Known for our assortment of products offered as “Good Stuff Cheap®,” we offer customers a broad selection of brand name products, including housewares, bed and bath, food, floor coverings, health and beauty aids, books and stationery, toys, and electronics. Our differentiated go-to market strategy is characterized by a unique, fun and engaging treasure hunt shopping experience, compelling customer value proposition and witty, humorous in-store signage and advertising campaigns.
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growing our merchant buying team to increase our access to brand name/closeout merchandise;
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adding members to our senior management team;
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expanding the capacity of our distribution centers to their current 3.0 million square feet; and
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investing in information technology, accounting, and warehouse management systems.
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growing our store base;
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increasing our offerings of great bargains; and
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leveraging and expanding Ollie’s Army.
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We have a proven portable, flexible, and highly profitable store model that has produced consistent financial results and returns. Our new store model targets a store size between 25,000 to 35,000 square feet and an average initial cash investment of approximately $1.0 million, which includes store fixtures and equipment, store-level and distribution center inventory (net of payables), and pre-opening expenses. We target new store sales of approximately $4.0 million in their first full year of operations.
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have been remodeled while remaining open;
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are closed for five or fewer days in any fiscal month;
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are closed temporarily and relocated within their respective trade areas; and
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have expanded, but are not significantly different in size, within their current locations.
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We opened 29 stores in the second quarter of fiscal 2025, compared to 9 stores in the second quarter of fiscal 2024. Of the 29 store openings, 22 were bankruptcy acquired leases.
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Components may not add to totals due to rounding.
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Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for the respective periods presented.
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Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our condensed consolidated statements of income.
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Second Quarter of Fiscal 2025 Compared to Second Quarter of Fiscal 2024
Reworded paragraphs (37)
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 calendar year. References to “2025” refer to the 52-week period of February 2, 2025 to January 31, 2026. References to “2024” refer to the 52-week period of February 4, 2024 to February 1, 2025. References to the “second quarter of fiscal 2025” and the “second quarter of fiscal 2024” refer to the thirteen weeks of May 4, 2025 to August 2, 2025 and May 5, 2024 to August 3, 2024, respectively. Year-to-date periods ended August 2, 2025 and August 3, 2024 refer to the twenty-six weeks of February 2, 2025 to August 2, 2025 and February 4, 2024 to August 3, 2024, 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 31 st of the following calendar year. References to “2025” refer to the 52-week period of February 2, 2025 to January 31, 2026. References to “2024” refer to the 52-week period of February 4, 2024 to February 1, 2025. References to the “third quarter of fiscal 2025” and the “third quarter of fiscal 2024” refer to the thirteen weeks of August 3, 2025 to November 1, 2025 and August 4, 2024 to November 2, 2024, respectively. Year-to-date periods ended November 1, 2025 and November 2, 2024 refer to the thirty-nine weeks of February 2, 2025 to November 1, 2025 and February 4, 2024 to November 2, 2024, 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
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 also have opportunistically expanded our store base through acquiring former store locations of distressed or bankrupt retailers through the bankruptcy auction or similar process. Our growth strategy continuously evaluates the best opportunities in the marketplace and combines organic new store openings with the acquisition of store locations through alternative means. 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 2, 2025, we operated 613 retail stores in 34 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. More recently, we also have opportunistically expanded our store base through acquiring former store locations of distressed or bankrupt retailers through the bankruptcy auction or similar process. Our new store growth strategy continuously evaluates the best opportunities in the marketplace and combines organic new store openings with the acquisition of store locations through alternative means. 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 November 1, 2025, we operated 645 retail stores in 34 states.
Previous wording
Our stores are supported by four distribution centers, one each in York, PA, Commerce, GA, Lancaster, TX, and Princeton, IL. We completed the construction of our Princeton, IL distribution center in the second quarter of 2024 and began shipping product in July 2024. With the addition of our fourth distribution center, we believe our distribution capabilities will support up to 750 stores.
Current wording
Our stores are supported by four distribution centers, one each in York, PA, Commerce, GA, Lancaster, TX, and Princeton, IL. We completed the construction of our Princeton, IL distribution center in the second quarter of 2024 and began shipping product in July 2024. With the addition of our fourth distribution center, we believe our distribution capabilities support up to approximately 750 stores.
Previous wording
While we are focused on driving comparable store sales and managing our expenses, our revenue and profitability growth will primarily come from opening new stores. The core elements of our business model are procuring great deals, offering extreme values to our customers, and creating consistent, predictable store growth and margins. In addition, our new stores generally open strong, immediately contributing to the growth in net sales and profitability of our business. We plan to achieve continued net sales growth, including comparable stores sales, by adding stores to our store base and by continuing to provide quality merchandise at a value for our customers as we scale and gain more access to purchase directly from major manufacturers. We also plan to leverage and expand our Ollie’s Army database marketing strategies. In addition, we plan to continue to manage our selling, general, and administrative expenses (“SG&A”) by continuing to make process improvements and by maintaining our standard policy of leveraging our fixed costs.
Current wording
While we are focused on increasing comparable store sales and managing our expenses, our revenue and profitability growth will primarily come from opening new stores. The core elements of our business model are procuring great deals, offering extreme values to our customers, and creating consistent, predictable store growth and margins. In addition, our new stores generally open strong, immediately contributing to the growth in net sales and profitability of our business. We plan to achieve continued net sales growth, including comparable stores sales, by adding stores to our store base and by continuing to provide quality merchandise at a value for our customers as we scale and gain more access to purchase directly from major manufacturers. We also plan to leverage and expand our Ollie’s Army database marketing strategies. In addition, we plan to continue to manage our selling, general, and administrative expenses (“SG&A”) by continuing to make process improvements and by maintaining our standard policy of leveraging our fixed costs.
Previous wording
Our key competitive advantage is our direct buying relationships with many major manufacturers, wholesalers, distributors, brokers, and retailers for our brand name closeout products and unbranded goods. We also augment our product mix with private label brands. As we continue to grow, we believe our increased scale will provide us with even greater access to brand name closeout products as major manufacturers seek a single buyer to acquire an entire deal.
Current wording
Our key competitive advantage is our flexible buying model that focuses on closeout merchandise and excess inventory from suppliers and manufacturers around the world. As such, we strive to build direct buying relationships with many major manufacturers, wholesalers, distributors, brokers, and retailers for our brand name closeout products and unbranded goods. We also augment our product mix with private label brands. As we continue to grow, we believe our increased scale will provide us with even greater access to brand name closeout products as major manufacturers seek a single buyer to acquire an entire deal.
Previous wording
The number of new stores reflects the number of stores opened during a particular reporting period. Before we open new stores, we incur pre-opening expenses described below under “Pre-Opening Expenses” and we make an initial investment in inventory. We also make initial capital investments in fixtures and equipment, which we amortize over time.
Current wording
The number of new stores reflects the number of stores opened during a particular reporting period. Before we open new stores, we incur pre-opening expenses described below under “Pre-Opening Expenses” and we make an initial investment in inventory. We also make initial capital investments in fixtures and equipment, and in some cases store buildout, which we amortize over time.
Previous wording
Pre-opening expenses consist of expenses of opening new stores and distribution centers, as well as store remodel and closing costs. For opening new stores, pre-opening expenses include grand opening advertising costs, payroll expenses, travel expenses, employee training costs, rent expenses, and store setup costs. Pre-opening expenses for new stores are expensed as they are incurred, which is typically within 30 to 45 days of opening a new store. For opening distribution centers, pre-opening expenses primarily include inventory transportation costs, employee travel expenses, and occupancy costs. Store remodel costs primarily consist of payroll expenses, travel expenses, and store setup costs expensed as they are incurred. Store closing costs primarily consist of insurance deductibles, rent, and store payroll.
Current wording
Pre-opening expenses consist of expenses of opening new stores and distribution centers, as well as store remodel and closing costs. For organic new store openings, pre-opening expenses include grand opening advertising costs, payroll expenses, travel expenses, employee training costs, rent expenses, and store setup costs. For new stores where the leases were acquired through the bankruptcy or similar process, we incur additional pre-opening costs in the form of dark rent and buildout costs. For opening distribution centers, pre-opening expenses primarily include inventory transportation costs, employee travel expenses, and occupancy costs. Store remodel costs primarily consist of payroll expenses, travel expenses, and store setup costs expensed as they are incurred. Store closing costs primarily consist of insurance deductibles, rent, and store payroll.
Previous wording
EBITDA and Adjusted EBITDA are key metrics used by management and our Board to assess our financial performance. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We use Adjusted EBITDA to supplement U.S. generally accepted accounting principles (“GAAP”) measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our performance in connection with compensation decisions and to compare our performance against that of other peer companies using similar measures. Management believes it is useful to investors and analysts to evaluate these non-GAAP measures on the same basis as management uses to evaluate the Company’s operating results. We believe that excluding items from operating income, net income and net income per diluted share that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
Current wording
EBITDA and Adjusted EBITDA are key metrics used by management and our Board to assess our financial performance. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We use Adjusted EBITDA to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our performance in connection with compensation decisions and to compare our performance against that of other peer companies using similar measures. Management believes it is useful to investors and analysts to evaluate these non-GAAP measures on the same basis as management uses to evaluate the Company’s operating results. We believe that excluding items from operating income, net income and net income per diluted share that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
Previous wording
Year-to-date, as of August 2, 2025, we have opened 54 stores, compared to 13 stores during the same period in fiscal 2024. Of the 54 store openings, 40 of these were bankruptcy acquired leases.
Current wording
Year-to-date, as of November 1, 2025, we have opened 86 stores, compared to 37 store openings and three store closings during the same period in fiscal 2024. Of the 86 store openings, 63 were bankruptcy acquired leases.
Previous wording
Our business is seasonal in nature and demand is generally the highest in our fourth fiscal quarter due to the holiday sales season. To prepare for the holiday sales season, we must order and keep in stock more merchandise than we carry during other times of the year and generally engage in additional marketing efforts. We expect inventory levels, along with accounts payable and accrued expenses, to reach their highest levels in our third and fourth fiscal quarters in anticipation of increased net sales during the holiday sales season. As a result of this seasonality, and generally because of variation in consumer spending habits, we experience fluctuations in net sales and working capital requirements during the year. Because we offer a broad selection of merchandise at extreme values, we believe we are less impacted than other retailers by economic cycles which correspond with declines in general consumer spending habits, and we believe we still benefit from periods of increased consumer spending.
Current wording
There is some seasonality to our business, and demand is generally the highest in our fourth fiscal quarter due to the holiday sales season. To prepare for the holiday sales season, we must order and keep in stock more merchandise than we carry during other times of the year and generally engage in additional marketing efforts. We expect inventory levels, along with accounts payable and accrued expenses, to reach their highest levels in our third and fourth fiscal quarters in anticipation of increased net sales during the holiday sales season. As a result of this seasonality, and generally because of variation in consumer spending habits, we experience fluctuations in net sales and working capital requirements during the year. Because we offer a broad selection of merchandise at extreme values, we believe we are less impacted than other retailers by economic cycles which correspond with declines in general consumer spending habits, and we believe we still benefit from periods of increased consumer spending.
Previous wording
We derived the condensed consolidated statements of income for the thirteen and twenty-six weeks ended August 2, 2025 and August 3, 2024 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 thirty-nine weeks ended November 1, 2025 and November 2, 2024 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 17.5% to $679.6 million in the second quarter of fiscal 2025 from $578.4 million in the second quarter of fiscal 2024. The increase in net sales was driven primarily by new store unit growth and an increase in comparable store sales.
Current wording
Net sales increased 18.6% to $613.6 million in the third quarter of fiscal 2025 from $517.4 million in the third quarter of fiscal 2024. The increase in net sales was driven primarily by new store unit growth and an increase in comparable store sales.
Previous wording
Comparable store sales increased 5.0% in the second quarter of fiscal 2025 compared with a 5.8% increase in the second quarter of fiscal 2024. The increase in comparable store sales was driven primarily by an increase in the number of transactions.
Current wording
Comparable store sales increased 3.3% in the third quarter of fiscal 2025 compared with a 0.5% decrease in the third quarter of fiscal 2024. The increase in comparable store sales was driven primarily by an increase in the number of transactions, partially offset by a decrease in the average basket, which was driven by a decline in the average ticket price.
Previous wording
Gross profit increased 23.9% to $271.3 million in the second quarter of fiscal 2025 from $219.0 million in the second quarter of fiscal 2024. Gross margin increased 200 basis points to 39.9% in the second quarter of fiscal 2025 from 37.9% in the second quarter of fiscal 2024. The increase in gross margin was primarily due to lower supply chain costs and higher merchandise margin.
Current wording
Gross profit increased 18.3% to $253.7 million in the third quarter of fiscal 2025 from $214.5 million in the third quarter of fiscal 2024. Gross margin decreased 10 basis points to 41.3% in the third quarter of fiscal 2025 from 41.4% in the third quarter of fiscal 2024. The decrease in gross margin was primarily driven by higher supply chain costs, including incremental tariff expenses, partially offset by higher merchandise margins.
Previous wording
SG&A expenses increased 20.5% to $175.5 million in the second quarter of fiscal 2025 from $145.7 million in the second quarter of fiscal 2024. As a percentage of net sales, SG&A expenses increased 60 basis points to 25.8% in the second quarter of fiscal 2025 from 25.2% in the second quarter of fiscal 2024. The increase in SG&A expenses as a percentage of net sales was primarily driven by higher medical and casualty claims, as well as slightly higher store labor expenses.
Current wording
SG&A expenses increased to $180.3 million in the third quarter of fiscal 2025 from $154.5 million in the third quarter of fiscal 2024, an increase of $25.8 million, or 16.7%, primarily driven by higher selling expenses related to new store growth. As a percentage of net sales, SG&A expenses decreased 50 basis points to 29.4% in the third quarter of fiscal 2025 from 29.9% in the third quarter of fiscal 2024. The decrease in SG&A expenses as a percentage of net sales was primarily driven by lower professional service expenses, lower stock-based compensation, and leverage from the continued optimization of our marketing spend.
Previous wording
Pre-opening expenses increased 95.3% to $9.0 million in the second quarter of fiscal 2025 from $4.6 million in the second quarter of fiscal 2024. The increase in pre-opening expenses was primarily driven by new store growth and dark rent of $2.3 million associated with the bankruptcy acquired stores. We opened 29 stores in the second quarter of fiscal 2025 compared to 9 stores in the second quarter of fiscal 2024. Of the 29 store openings, 22 were bankruptcy acquired leases that carried higher levels of dark rent.
Current wording
Pre-opening expenses increased 3.2% to $7.4 million in the third quarter of fiscal 2025 from $7.2 million in the third quarter of fiscal 2024. The increase in pre-opening expenses was primarily driven by new store growth and dark rent of $1.0 million associated with the bankruptcy acquired stores. We opened 32 stores in the third quarter of fiscal 2025 compared to 24 stores opened and 3 stores closed in the third quarter of fiscal 2024. Of the 32 store openings, 23 were bankruptcy acquired leases that carried higher levels of dark rent.
Previous wording
Interest income, net was $4.5 million in the second quarter of fiscal 2025 compared with net interest income of $3.9 million in the second quarter of fiscal 2024. The increase in interest income in the second quarter of fiscal 2025 is primarily due to higher average cash and cash equivalent and investments balances compared to the second quarter of fiscal 2024.
Current wording
Interest income, net was $4.5 million in the third quarter of fiscal 2025 compared with net interest income of $4.0 million in the third quarter of fiscal 2024. The increase in interest income in the third quarter of fiscal 2025 is primarily due to higher average cash and cash equivalent and investments balances, partially offset by lower rates.
Previous wording
Income tax expense increased to $20.2 million in the second quarter of fiscal 2025 compared to $15.7 million in the second quarter of fiscal 2024. The effective tax rates for the second quarters of fiscal 2025 and fiscal 2024 were 24.8% and 24.3%, respectively. The change in the effective tax rate was driven by the impact of higher non-deductible compensation as well as lower discrete items recognized, primarily excess tax benefits related to stock-based compensation.
Current wording
Income tax expense increased to $13.8 million in the third quarter of fiscal 2025 compared to $12.7 million in the third quarter of fiscal 2024. The effective tax rates for the third quarters of fiscal 2025 and fiscal 2024 were 23.0% and 26.1%, respectively. The change in the effective tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, partially offset by the impact of higher non-deductible compensation.
Previous wording
As a result of the foregoing, net income increased to $61.3 million in the second quarter of fiscal 2025 from $49.0 million in the second quarter of fiscal 2024, an increase of $12.3 million or 25.2%.
Current wording
As a result of the foregoing, net income increased to $46.2 million in the third quarter of fiscal 2025 from $35.9 million in the third quarter of fiscal 2024, an increase of $10.3 million or 28.7%.
Previous wording
Adjusted EBITDA increased to $93.8 million in the second quarter of fiscal 2025 from $74.5 million in the second quarter of fiscal 2024, an increase of $19.3 million, or 26.0%.
Current wording
Adjusted EBITDA increased to $72.9 million in the third quarter of fiscal 2025 from $59.8 million in the third quarter of fiscal 2024, an increase of $13.0 million, or 21.8%.
Previous wording
Net sales increased 15.6% to $1.256 billion in the twenty-six weeks ended August 2, 2025 from $1.087 billion in the twenty-six weeks ended August 3, 2024. The increase in net sales was driven primarily by new store unit growth and an increase in comparable store sales.
Current wording
Net sales increased 16.6% to $1.870 billion in the thirty-nine weeks ended November 1, 2025 from $1.605 billion in the thirty-nine weeks ended November 2, 2024. The increase in net sales was driven primarily by new store unit growth and an increase in comparable store sales.
Previous wording
Comparable store sales increased 3.9% in the twenty-six weeks ended August 2, 2025 compared with a 4.5% increase in the twenty-six weeks ended August 3, 2024. The increase in comparable store sales was driven primarily by an increase in the number of transactions.
Current wording
Comparable store sales increased 3.7% in the thirty-nine weeks ended November 1, 2025 compared with a 2.8% increase in the thirty-nine weeks ended November 2, 2024. The increase in comparable store sales was driven primarily by an increase in the number of transactions, partially offset by a decrease in the average basket, which was driven by a decline in the average ticket price.
Previous wording
Gross profit increased 18.7% to $508.4 million in the twenty-six weeks ended August 2, 2025 from $428.4 million in the twenty-six weeks ended August 3, 2024. Gross margin increased 110 basis points to 40.5% in the twenty-six weeks ended August 2, 2025 from 39.4% in the twenty-six weeks ended August 3, 2024. The increase in gross margin was primarily due to lower supply chain costs.
Current wording
Gross profit increased 18.6% to $762.0 million in the thirty-nine weeks ended November 1, 2025 from $642.8 million in the thirty-nine weeks ended November 2, 2024. Gross margin increased 70 basis points to 40.8% in the thirty-nine weeks ended November 1, 2025 from 40.1% in the thirty-nine weeks ended November 2, 2024. The increase in gross margin was primarily due to higher merchandise margins, partially offset by higher supply chain costs, including incremental tariff expense.
Previous wording
SG&A expenses increased 18.1% to $340.3 million in the twenty-six weeks ended August 2, 2025 from $288.1 million in the twenty-six weeks ended August 3, 2024. As a percentage of net sales, SG&A expenses increased 60 basis points to 27.1% in the twenty-six weeks ended August 2, 2025 from 26.5% in the twenty-six weeks ended August 3, 2024. The increase in SG&A expenses as a percentage of net sales was primarily driven by higher medical and casualty claims.
Current wording
SG&A expenses increased to $520.6 million in the thirty-nine weeks ended November 1, 2025 from $442.6 million in the thirty-nine weeks ended November 2, 2024, an increase of $78.0 million, or 17.6%, primarily driven by higher selling expenses related to new store growth. As a percentage of net sales, SG&A expenses increased 20 basis points to 27.8% in the thirty-nine weeks ended November 1, 2025 from 27.6% in the thirty-nine weeks ended November 2, 2024. The increase in SG&A expenses as a percentage of net sales was primarily driven by higher medical and casualty claims, partially offset by the leverage of fixed costs from higher sales.
Previous wording
Pre-opening expenses increased 113.5% to $15.6 million in the twenty-six weeks ended August 2, 2025 from $7.3 million in the twenty-six weeks ended August 3, 2024. The increase in pre-opening expenses was primarily driven by new store growth and dark rent expense of $4.1 million associated with the bankruptcy acquired stores. We opened 54 stores in the twenty-six weeks ended August 2, 2025 compared to 13 stores in the twenty-six weeks ended August 3, 2024. Of the 54 store openings, 40 of these were bankruptcy acquired leases that carried higher levels of dark rent.
Current wording
Pre-opening expenses increased 58.9% to $23.0 million in the thirty-nine weeks ended November 1, 2025 from $14.5 million in the thirty-nine weeks ended November 2, 2024. The increase in pre-opening expenses was primarily driven by new store growth and dark rent expense of $5.1 million associated with the bankruptcy acquired stores. We opened 86 stores in the thirty-nine weeks ended November 1, 2025 compared to 37 stores opened and three stores closed in the thirty-nine weeks ended November 2, 2024. Of the 86 store openings, 63 of these were bankruptcy acquired leases that carried higher levels of dark rent.
Previous wording
Interest income, net increased to $9.3 million in the twenty-six weeks ended August 2, 2025 from $8.2 million in the twenty-six weeks ended August 3, 2024, primarily due to favorable interest rates and higher average cash and cash equivalent and short-term investments balances.
Current wording
Interest income, net increased to $13.8 million in the thirty-nine weeks ended November 1, 2025 from $12.3 million in the thirty-nine weeks ended November 2, 2024, primarily due to higher average cash and cash equivalent and short-term investments balances, partially offset by lower rates.
Previous wording
Income tax expense in the twenty-six weeks ended August 2, 2025 was $33.6 million compared to income tax expense of $30.2 million in the twenty-six weeks ended August 3, 2024. The effective tax rates for the twenty-six weeks ended August 2, 2025 and August 3, 2024 were 23.6% and 24.0%, respectively. The decrease in the effective tax rate wasdriven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, partially offset by the impact of higher non-deductible compensation.
Current wording
Income tax expense in the thirty-nine weeks ended November 1, 2025 was $47.4 million compared to income tax expense of $42.8 million in the thirty-nine weeks ended November 2, 2024. The effective tax rates for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 were 23.4% and 24.6%, respectively. The decrease in the effective tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation, partially offset by the impact of higher non-deductible compensation.
Previous wording
As a result of the foregoing, net income increased to $108.9 million in the twenty-six weeks ended August 2, 2025 from $95.3 million in the twenty-six weeks ended August 3, 2024, an increase of $13.5 million or 14.2%.
Current wording
As a result of the foregoing, net income increased to $155.0 million in the thirty-nine weeks ended November 1, 2025 from $131.2 million in the thirty-nine weeks ended November 2, 2024, an increase of $23.8 million or 18.2%.
Previous wording
Adjusted EBITDA increased to $165.9 million in the twenty-six weeks ended August 2, 2025 from $143.9 million in the twenty-six weeks ended August 3, 2024, an increase of $22.1 million, or 15.3%.
Current wording
Adjusted EBITDA increased to $238.8 million in the thirty-nine weeks ended November 1, 2025 from $203.7 million in the thirty-nine weeks ended November 2, 2024, an increase of $35.1 million, or 17.3%.
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 August 2, 2025, we had $90.4 million available to borrow under our Revolving Credit Facility and $317.1 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 November 1, 2025, we had $88.1 million available to borrow under our Revolving Credit Facility and $186 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 $26.4 million and $38.3 million for capital expenditures during the second quarters of fiscal 2025 and fiscal 2024, respectively. For the twenty-six weeks ended August 2, 2025, we spent $53.2 million for capital expenditures compared to $65.2 million for the twenty-six weeks ended August 3, 2024. We opened 29 stores during the second 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 $30.7 million and $31.0 million for capital expenditures during the third quarters of fiscal 2025 and fiscal 2024, respectively. For the thirty-nine weeks ended November 1, 2025, we spent $83.9 million for capital expenditures compared to $96.2 million for the thirty-nine weeks ended November 2, 2024. We opened 32 stores during the third quarter of fiscal 2025.
Previous wording
Capital expenditures in 2025 are planned to be approximately $83 to $88 million, primarily for the opening of 85 stores, store-level initiatives at our existing stores, 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 2025 are planned to be approximately $88 million, primarily for the opening of 86 stores, store-level initiatives at our existing stores, 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.
Previous wording
Between December 15, 2020, and November 30, 2023, our Board of Directors approved and authorized the repurchase of up to $400.0 million of shares of our common stock through three separate approvals, set to expire March 31, 2026. On March 19, 2025, our Board of Directors approved a new share repurchase authorization of an additional $300.0 million of our outstanding common stock, 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 of Directors at any time.
Current wording
Between December 15, 2020, and November 30, 2023, our Board of Directors approved and authorized the repurchase of up to $400.0 million of shares of our common stock through three separate approvals, effective through March 31, 2026. On March 19, 2025, our Board of Directors approved a new share repurchase authorization of an additional $300.0 million of our outstanding common stock, 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 of Directors at any time.
Previous wording
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. During the twenty-six weeks ended August 3, 2024, we repurchased 418,274 shares of our common stock for $31.4 million, inclusive of transaction costs, pursuant to our share repurchase program. These expenditures were funded by cash generated from operations. As of August 2, 2025, we had $304.0 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 thirty-nine weeks ended November 1, 2025, we repurchased 346,032 shares of our common stock for $40.2 million, inclusive of transaction costs, pursuant to our share repurchase program. During the thirty-nine weeks ended November 2, 2024, we repurchased 587,633 shares of our common stock for $47.3 million, inclusive of transaction costs, pursuant to our share repurchase program. These expenditures were funded by cash generated from operations. As of November 1, 2025, we had $292.5 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.
Previous wording
Net cash provided by operating activities was $109.4 million for the twenty-six weeks ended August 2, 2025 as compared to net cash provided by operating activities of $84.1 million for the twenty-six weeks ended August 3, 2024. The increase in net cash provided by operating activities for the twenty-six weeks ended August 2, 2025 was primarily due to an increase in net income year over year, partially offset by changes in working capital, most notably the timing of merchandise payments.
Current wording
Net cash provided by operating activities was $114.2 million for the thirty-nine weeks ended November 1, 2025 as compared to net cash provided by operating activities of $79.7 million for the thirty-nine weeks ended November 2, 2024. The increase in net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025 was primarily due to an increase in net income year over year, partially offset by changes in working capital, most notably the timing of merchandise payments.
Previous wording
Net cash used in investing activities for the twenty-six weeks ended August 2, 2025 and August 3, 2024 was $58.0 million and $159.4 million, respectively. The decrease in cash used in investing activities is primarily due to an increase in maturities of investment securities, in addition to a decrease in capital expenditures. For the twenty-six weeks ended August 2, 2025, purchases of investments were $232.1 million offset with maturities of investments of $227.2 million. For the twenty-six weeks ended August 3, 2024, purchases of investments were $230.7 million offset with maturities of investments of $136.2 million.
Current wording
Net cash used in investing activities for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $146.1 million and $183.4 million, respectively. The decrease in cash used in investing activities is primarily due to an increase in maturities of investment securities, in addition to a decrease in capital expenditures. For the thirty-nine weeks ended November 1, 2025, purchases of investments were $363.4 million offset with maturities of investments of $300.8 million. For the thirty-nine weeks ended November 2, 2024, purchases of investments were $351.3 million offset with maturities of investments of $263.7 million.
Previous wording
Net cash used in financing activities for the twenty-six weeks ended August 2, 2025 and August 3, 2024 was $25.4 million and $20.3 million, respectively. The increase in cash used in financing activities is primarily due to a decrease in the proceeds from stock option exercises in the twenty-six weeks ended August 2, 2025 of $9.3 million compared to $14.7 million in the twenty-six weeks ended August 3, 2024.
Current wording
Net cash used in financing activities for the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $28.5 million and $33.8 million, respectively. The decrease in cash used in financing activities is primarily due to a decrease in the repurchase of common stock in the thirty-nine weeks ended November 1, 2025 compared to the thirty-nine weeks ended November 2, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Management’s Discussion and Analysis of Financial Condition and Results of Operations