Ollie's Bargain Outlet Holdings Inc. (OLLI) saw its stock surge 12.21% in pre-market trading on Tuesday, following the release of its impressive fiscal third-quarter 2024 financial results.

The discount retailer reported a 7.8% increase in net sales to $517.4 million, driven by an 8.1% year-over-year increase in its store count to 546 locations across 31 states. Ollie's opened a record 24 new stores during the quarter, capitalizing on favorable real estate opportunities to strengthen its expansion pipeline.

"We delivered strong earnings on higher sales, gross margin, and disciplined expense control. We also took advantage of a number of real estate opportunities that strengthened our new store pipeline and enhanced our competitive positioning for the future," said CEO John Swygert.

Despite a 0.5% dip in comparable store sales, Ollie's adjusted earnings per share of $0.58 beat analyst estimates of $0.57, supported by favorable supply chain costs and expense discipline. The company's gross margin expanded by 100 basis points to 41.4%, while adjusted EBITDA surged 17% to $59.8 million, reflecting an 11.6% adjusted EBITDA margin.