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Ollie's Bargain Outlet (OLLI) is nicely higher after reporting its Q4 (Jan) results this morning. The closeout retailer reported EPS in line with expectations, while revenue increased 16.8% yr/yr to $779 mln, also roughly in line with expectations. For FY27, OLLI guided EPS to $4.40-4.50 and revenue to $2.985-3.013 bln, both in line with expectations, along with comp sales growth of approximately 2%.

• Comp sales increased 3.6%, above its guidance for +2-3% and a slight acceleration from 3.3% in Q3 despite significant store closures from winter storms, driven by increases in both basket and transactions.
• The strong performance reflects OLLI's continued execution on store growth and customer acquisition. Ollie's Army grew 12.1% yr/yr to 17 mln members, while OLLI opened a record 86 stores in FY26, well above its prior record of 50.
• In addition to accelerating membership growth, OLLI is attracting a broader customer base as it expands into new markets. While benefiting from value-seeking consumers and trade-down behavior, OLLI is also reaching more Gen Z and millennial shoppers through digital marketing efforts.
• Gross margin fell 80 bps yr/yr to 39.9%, though that was above plan and primarily reflected planned investments in price. On tariffs, OLLI expects to mitigate any pressure in FY27, and noted that tariffs, as a form of disruption, have historically tended to benefit OLLI's model.
• While FY27 guidance was largely in line, OLLI's longer-term commentary was notably constructive. OLLI said its growing scale, better merchandise access, and continued investment should support about 2% annual comp growth, gross margin near 40.5%, and mid-teen EPS growth, helped by higher buybacks.

Briefing.com Analyst Insight

While OLLI's Q4 results were largely in line, this was still an encouraging quarter. Comp sales accelerated modestly and exceeded guidance despite winter weather disruptions, reinforcing the strength of its value positioning. This is evident not only in its growing loyalty membership, but also in its broadening customer base as it expands into new markets. While part of that reflects the current environment, it also highlights solid execution on store growth, merchandising, and customer acquisition. Its FY27 guidance was largely in line as well, but we think management's commentary around mitigating tariff pressure and maintaining healthy margin and comp growth over the long run was constructive. That should keep the focus on new-store performance, customer and loyalty growth, and efforts to further improve the in-store experience. Still, with a favorable backdrop, modest comp acceleration, and supportive longer-term commentary, shares are responding well today.