By Emon Reiser

Ollie's Bargain Outlet said its sales and store openings are on the rise as consumers shrink their spending.

The discount retailer logged net income of $68.6 million, or $1.11 a share, for the fourth quarter, down from $76.5 million, or $1.23 a share, a year earlier.

Stripping out one-time items, earnings also came in at $1.19 a share, matching the expectations of analysts polled by FactSet.

Quarterly sales rose to $667.1 million, shy of the $675 million analysts expected. In the year-ago period, sales were $648.9 million.

Comparable store sales increased 2.8%. Analysts expected 2.4%.

Chief Executive Eric van der Valk said Ollie's has an opportunity to increase its footprint at a time when other retailers are closing stores or going bankrupt, leaving abandoned customers, merchandise, real estate, and talent in th emarketplace. The company opened 13 stores in the fourth quarter and accelerated its growth target to 75 store openings for fiscal 2025 from 50 stores. The company recently announced the acquisition of 40 former Big Lots store locations.

"We think there is a unique opportunity to take on some of these assets in a manner that strengthens our competitive positioning, broadens our footprint, and bolsters shareholder returns for years to come," van der Valk said. "With our expanded supply chain, flexible and resilient operating model, fortress balance sheet, and committed associates, we are ready."

Ollie's forecast fiscal 2025 sales between $2.56 billion and $2.59 billion. The company guided full-year adjusted net income between $3.65 and $3.75 a share.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

March 19, 2025 08:12 ET (12:12 GMT)

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