Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) shares rose 2.3% in premarket trading after the off-price retailer reported fiscal second-quarter 2026 results, including higher net sales and adjusted earnings per share.
Net sales increased 9.1% year over year, while adjusted net income per diluted share rose 43.4% to $1.42.
The supplied information cites a consensus earnings estimate of $1.14 per share and an analyst revenue estimate of $756.4 million. It does not provide Ollie’s reported quarterly revenue figure.
Comparable Store Sales Decline 1.8%
Comparable store sales decreased 1.8% during the quarter.
Chief Executive Eric van der Valk attributed the decline to less favourable weather, continued economic pressure on consumers and a higher level of promotional activity.
These factors represent management’s explanation for the comparable sales performance.
Despite the decline in comparable store sales, Ollie’s increased its expectations for gross margin and adjusted earnings per share for the full year.
Ollie’s Raises Profitability Guidance
The company raised its gross margin guidance to approximately 40.7% from 40.5%.
Ollie’s also increased its adjusted earnings per share forecast to a range of $4.45 to $4.55, compared with its previous guidance of $4.40 to $4.50.
The revised projections represent company guidance and remain subject to future operating and market conditions.
Company Repurchases $84 Million of Shares in Q2
Ollie’s spent approximately $84 million to repurchase 1.107 million shares during the second quarter.
Share repurchases during the first half of the fiscal year totalled $137.3 million, according to the supplied information.
The buybacks represent capital allocation decisions by the company and do not by themselves establish management’s view of the stock’s future performance or valuation.
Ollie’s Shares Remain Lower for the Year
Ollie’s entered the quarterly report trading near $75, with the shares down approximately 32% year to date and below their 52-week high.
Elsewhere in the discount retail sector, the supplied information showed differing recent results. Ross Stores reported revenue growth of 13.3% and results above estimates, while Burlington reported results below expectations.
Broader U.S. equity markets provided a mixed-to-lower backdrop in premarket trading, with the S&P 500 slightly negative and the Nasdaq down 0.4%.
Ollie’s 2.3% premarket increase followed the company’s quarterly results and higher profitability guidance. However, the extent to which individual factors contributed to the share-price move cannot be established from the supplied information.