Ollie’s Bargain Outlet Holdings, Inc. stock climbed Thursday after the discount retailer reported fiscal fourth-quarter results.

Earnings Snapshot

The company reported fourth-quarter adjusted earnings per share of $1.39, in line with the Street view. Quarterly sales of $779.256 million (+16.8% year over year) missed the analyst consensus estimate of $783.271 million.

“In the fourth quarter, we delivered better than expected sales and earnings, driven by solid comp growth, healthy margins, and disciplined expense control,” said Eric van der Valk, President and Chief Executive Officer.

Comparable store sales increased 3.6%, driven by an increase in basket and transactions. Seasonal, consumables, hardware, stationery, and sporting goods were the top-performing categories in the quarter.

Gross margin came in at 39.9%, exceeding the company’s expectations.

The 80-basis-point year-over-year decline mainly reflected planned pricing investments.

Ollie’s Bargain opened a record 86 stores during the fiscal year. The retailer ended the period with 645 stores across 34 states, up 15.4%.

Ollie’s Army loyalty membership grew 12.1% to 17.0 million members.

The firm exited the quarter with cash and equivalents worth $259.68 million.

The company repurchased $33.6 million in common stock during the fourth quarter and $73.8 million over the full fiscal year.

Outlook

Ollie’s Bargain Outlet expects fiscal 2026 adjusted earnings of $4.40 to $4.50 per share, compared with a $4.48 estimate.

The company expects fiscal 2026 sales of $2.985 billion to $3.013 billion, compared with a $3.002 billion estimate.

The company expects to open 75 new stores in fiscal 2026. It also projects about 2% comparable store sales growth for the year ending Jan. 30, 2027.

During the earnings call, management committed to returning approximately 50% of free cash flow to shareholders through share repurchases, starting with $100 million in 2026.

CFO Robert Helm said, “We are targeting to return approximately 50% of our free cash flow back to investors through share repurchases going forward.”

OLLI Price Action: Ollie’s Bargain Outlet shares were up 4.54% at $108.06 at the time of publication on Thursday, according to Benzinga Pro data.