Ollie's Bargain Outlet Holdings, Inc.
For the period ended May 2, 2026. Filed Jun 3, 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.
May 2, 2026 · Filed Jun 3, 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 2025-11-01; filed 2025-12-09.
0001140361-25-045024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent 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 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 122 previous paragraphs and 88 current paragraphs.
46 unchanged; 25 reworded; 17 added; 50 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 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 (17)
Current report
Our highly experienced merchandise team is constantly scouring the market and leveraging deep, long-standing relationships across the supply chain to find the best products at the best prices. We focus on buying cheap and selling cheap, and source products as unique buying opportunities present themselves. While the individual products sold in our stores are constantly changing, our overall merchandise mix is designed to save people money on a wide variety of brand name household products that they need and use in their everyday lives.
Current report
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 report
Pre-opening expenses consist of all expenses associated with the opening of new stores and distribution centers, as well as all expenses associated with the remodel and/or closing of an existing store.
Current report
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 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.
Current report
IEEPA Tariff Refunds
Current report
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 report
First Quarter of Fiscal 2026 Compared to First Quarter of Fiscal 2025
Current report
Net Sales
Current report
Gross Profit and Gross Margin
Current report
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 report
Selling, General, and Administrative Expenses
Current report
Pre-Opening Expenses
Current report
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 report
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 report
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 report
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.
Removed paragraphs (50)
Previous report
Our Growth Strategy
Previous 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.
Previous report
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 report
We have invested in our associates, infrastructure, distribution network, and information systems to allow us to continue to rapidly grow our store footprint, including:
Previous report
Our business model has produced consistent and predictable store growth over the past several years, during both strong and weaker economic cycles. We plan to continue to enhance our competitive positioning and drive growth in sales and profitability by executing on the following strategies:
Previous report
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 report
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 report
How We Assess the Performance of Our Business and Key Line Items
Previous report
Number of New Stores
Previous report
We expect new store growth to be the primary driver of our sales growth. Our initial lease terms are approximately seven years with options to renew for three to five successive five-year periods. Our portable and predictable real estate model focuses on backfilling existing markets and entering new markets in contiguous states. Our new stores often open with higher sales levels as a result of greater advertising and promotional spend in connection with grand opening events but decline shortly thereafter to our new store model levels.
Previous report
Comparable Store Sales
Previous report
We define comparable stores to be stores that:
Previous report
Non-comparable store sales consist of new store sales and sales for stores not open for a full 15 months. Stores which are closed temporarily, but for more than five days in any fiscal month, are included in non-comparable store sales beginning in the fiscal month in which the temporary closure begins until the first full month of operation once the store re-opens, at which time they are included in comparable store sales.
Previous report
Opening new stores is the primary component of our growth strategy and as we continue to execute on our growth strategy, we expect a significant portion of our sales growth will be attributable to non-comparable store sales. Accordingly, comparable store sales are only one measure we use to assess the success of our growth strategy.
Previous report
In addition, our gross margin is impacted by product mix, as some products generally provide higher gross margins, by our merchandise mix and availability, and by our merchandise cost, which can vary.
Previous report
Our gross profit is variable in nature and generally follows changes in net sales. We regularly analyze the components of gross profit, as well as gross margin. Specifically, our product margin and merchandise mix is reviewed by our merchant team and senior management, ensuring strict adherence to internal margin goals. Our disciplined buying approach has produced consistent gross margins and we believe helps to mitigate adverse impacts on gross profit and results of operation.
Previous report
The components of our cost of sales may not be comparable to the components of cost of sales or similar measures of our competitors and other retailers. As a result, our gross profit and gross margin may not be comparable to similar data made available by our competitors and other retailers.
Previous report
The components of our SG&A may not be comparable to the components of SG&A or similar measures of our competitors and other retailers. As a result, our SG&A may not be comparable to similar data made available by our competitors and other retailers.
Previous report
Depreciation and Amortization Expenses
Previous report
Property and equipment are stated at original cost less accumulated depreciation and amortization. Depreciation and amortization expenses are calculated over the estimated useful lives of the related assets, or in the case of leasehold improvements, the lesser of the useful lives or the remaining term of the lease. Expenditures for additions, renewals, and betterments are capitalized; expenditures for maintenance and repairs are charged to expense as incurred. Depreciation and amortization are computed on the straight-line method for financial reporting purposes. Depreciation as it relates to our distribution centers is included within cost of sales on the condensed consolidated statements of income.
Previous report
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 report
Operating Income
Previous report
Operating income is gross profit less SG&A, depreciation and amortization, and pre-opening expenses. Operating income excludes net interest income or expense, and income tax expense or benefit. We use operating income as an indicator of the productivity of our business and our ability to manage expenses.
Previous report
EBITDA and Adjusted EBITDA
Previous report
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.
Previous report
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 report
Third quarter of Fiscal 2025 Compared to Third quarter of Fiscal 2024
Previous report
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 report
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 report
Year-to-Date Fiscal 2025 Compared to Year-to-Date Fiscal 2024
Previous report
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 report
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 report
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 report
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 report
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 report
Index
Previous report
Interest Income, Net
Previous report
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 report
Income Tax Expense
Previous report
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.
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Reworded paragraphs (25)
Previous wording
The following discussion and analysis of the financial condition and results of our operations should be read together with the financial statements and related notes of Ollie’s Bargain Outlet Holdings, Inc. included in Item 1 of this Quarterly Report on Form 10-Q and with our audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, filed on March 26, 2025, as amended by Amendment No. 1 to the Annual Report on Form 10-K for the fiscal year ended February 1, 2025, filed on April 11, 2025 (as amended, the “Annual Report”) with the Securities and Exchange Commission, or SEC. As used in this Quarterly Report on Form 10-Q, except where the context otherwise requires or where otherwise indicated, the terms “Ollie’s,” the “Company,” “we,” “our,” and “us” refer to Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries.
Current wording
The following discussion and analysis of the financial condition and results of our operations should be read together with the financial statements and related notes of Ollie’s Bargain Outlet Holdings, Inc. included in Item 1 of this Quarterly Report on Form 10-Q and with our audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the Securities and Exchange Commission, or SEC, on March 19, 2026 (“Annual Report”). As used in this Quarterly Report on Form 10-Q, except where the context otherwise requires or where otherwise indicated, the terms “Ollie’s,” the “Company,” “we,” “our,” and “us” refer to Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries.
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 “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.
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 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.
Previous wording
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 wording
Ollie’s Bargain Outlet is a leading off-price retailer of brand name household products. Since our founding in 1982, the Company’s 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 shopping environment at prices up to 70% below 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 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.
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 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.
Previous wording
Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of the merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. Net sales consist of sales from comparable stores and non-comparable stores, described below under “Comparable Store Sales.” Growth of our net sales is primarily driven by expansion of our store base in existing and new markets. As we continue to grow, we believe we will have greater access to brand name and closeout merchandise and an increased deal selection, resulting in more potential offerings for our customers. Net sales are impacted by product mix, merchandise mix and availability, as well as promotional activities and the spending habits of our customers. Our broad selection of offerings across diverse product categories supports growth in net sales by attracting new customers, which results in higher spending levels and frequency of shopping visits from our customers, including Ollie’s Army members.
Current wording
While we are focused on driving comparable store sales and managing our expenses, the biggest driver of our net sales and profitability growth has historically been the opening of new stores. As we continue to grow, we believe we will have greater access to brand name closeout merchandise and an increased deal selection, resulting in more potential offerings for our customers.
Previous wording
Our ability to grow and our results of operations may be impacted by additional factors and uncertainties, such as consumer spending habits, which are subject to macroeconomic conditions and changes in discretionary income. Our customers’ discretionary income is primarily impacted by gas prices, wages, rising interest rates, inflation, and consumer trends and preferences, which fluctuate depending on the environment. The potential consolidation of our competitors or other changes in our competitive landscape could also impact our results of operations or our ability to grow, even though we compete with a broad range of retailers.
Current wording
Our ability to grow and our results of operations may be impacted by additional factors and uncertainties, such as consumer spending levels, which are subject to macroeconomic conditions and changes in discretionary income. Our customers’ discretionary income is impacted by changes in wages, gasoline and energy prices, interest rates, inflation, housing prices, rental rates, and consumer trends and preferences. The potential consolidation of our competitors or other changes in our competitive landscape could also impact our results of operations or our ability to grow. However, because we offer a broad selection of merchandise at extreme values, we believe we are generally less impacted than other retailers by economic cycles that correspond with declines in general consumer spending habits. We believe we also benefit from periods of increased consumer spending.
Previous wording
We consider a variety of financial and operating measures in assessing the performance of our business. The key measures we use are number of new stores, net sales, comparable store sales, gross profit and gross margin, SG&A, pre-opening expenses, operating income, EBITDA and Adjusted EBITDA.
Current wording
Management looks at a number of financial and operating measures in assessing the performance of the business, including new store openings, net sales, comparable store sales, gross profit and gross margin, operating expenses, operating income, earnings per share, EBITDA, and Adjusted EBITDA.
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, and in some cases store buildout, 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, which we amortize over time. Sales of new stores are typically strong in the first few months of operation because of the advertising and marketing spending associated with a new store grand opening and the word of mouth in the local community.
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. Comparable store sales are impacted by the same factors that impact net sales.
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 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.
Previous wording
Gross profit is equal to our net sales less our cost of sales. Cost of sales includes merchandise costs, inventory markdowns, shrinkage and transportation, distribution and warehousing costs, including depreciation. Gross margin is gross profit as a percentage of our net sales. Gross margin is a measure used by management to indicate whether we are selling merchandise at an appropriate gross profit.
Current 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.
Previous wording
SG&A expenses are comprised of payroll and benefits for store, field support, and support center associates. SG&A also includes marketing and advertising expense, occupancy costs for stores and the store support center, insurance, corporate infrastructure, and other general expenses. The components of our SG&A remain relatively consistent per store and for each new store opening. The components of our SG&A may not be comparable to the components of similar measures of other retailers. Consolidated SG&A generally increases as we grow our store base and as our net sales increase. A significant portion of our expenses are primarily fixed in nature, and we expect to continue to maintain strict discipline while carefully monitoring SG&A as a percentage of net sales. We expect that our SG&A will continue to increase in future periods with future growth.
Current wording
SG&A expenses are comprised of wages and benefits for store, field support, and support center associates. SG&A expenses also include marketing and advertising expense, occupancy and operating costs for stores and the store support center, insurance, corporate infrastructure, and other general expenses.
Previous 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.
Current wording
There is some seasonality to our business. Net sales are 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 holiday-related seasonality and other variations 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 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.
Current 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.
Previous 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.
Current 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%.
Previous 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.
Current 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.
Previous 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.
Current wording
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 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.
Current 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.
Previous 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.
Current 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.
Previous 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%.
Current 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%.
Previous 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%.
Current 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%.
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 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.”
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 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.”
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 $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.
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 $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.
Previous 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.
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 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.
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, 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.
Current 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.
Previous 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.
Current 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The spending habits of our customers are subject to macroeconomic conditions and changes in discretionary income. Our customers’ discretionary income is primarily impacted by gas prices, wages, inflation, and consumer trends and preferences, which fluctuate depending on the environment. However, because we offer a broad selection of merchandise at extreme values, we believe we are less impacted than other retailers by economic cycles that correspond with declines in general consumer spending habits. We believe we also benefit from periods of increased consumer spending.