Ollie's Bargain Outlet Holdings Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chuck Grom - Gordon Haskett Research Advisors - Analyst : I was hoping you could frame out the state of your consumer in light of your basket commentary. [DG] also spoke about some ticket compression during times of consumer dress recently and also historically. And then bigger picture, can you talk about your vendor relationships, both on the closeout on but more importantly, the steps you're taking to drive deeper CPG relationships?

Question: Matthew Boss - JPMorgan Chase & Co - Analyst : Great. So could you elaborate on the components of the third quarter comp, particularly the growth in transactions maybe relative to the second quarter versus drivers of the basket decline? And just how this fits into your customer acquisition strategy? And separately, could you speak to the cadence of monthly comps that you saw in the third quarter and just help define the strong start that you cited in the first quarter, maybe notably trends that you saw before and after Black Friday weekend?

Question: Stephen Zarcone - Citi - Analyst : I wanted to follow up there. The customer acquisition trends, can you talk about the growth you're seeing with new customers and then overall customer retention? And then as it relates to the Ollie's Army Night in December, how is your planning for that event changed at all based on the learnings from adding an additional night in June this year?

Question: Bradley Thomas - KeyBanc Capital Markets Inc - Analyst : You did a nice job here of driving leverage even with such a large increase in stores here this quarter. I was hoping you could talk a little bit more about some of the levers that you're pulling in SG&A and perhaps an early look at how to think about that into next year?

Question: Josh Young - Truist Securities - Analyst : This is Josh Young on for Scott. So can you just give us an update on the performance you're seeing from your stores that are in similar markets that have been now closed Big Lot locations? And then as we think about new stores and you've kind of accelerated the pace of openings here, there been any operational stresses you've had to work through or that might be supply chain or labor? Anything to call out there?

Question: Anthony Chukumba - Loop Capital Markets LLC - Analyst : So you talked in your prepared remarks about the fact that you have this increased seasonal merchandise assortment as well as an expanded holiday gift program. If I remember correctly, last year, a lot of the holiday gifts were essentially closed out from Big Lots. But I'm assuming -- correct me if I'm wrong, but a lot of the season on the gift, it's a direct sourced from Asia. I guess, first off, let me know if that's correct or not, then then also just what are the margin implications of direct sourcing of the seasonal and the holiday gift as opposed to closeout?

Question: Mark Carden - UBS AG - Analyst : So building on your marketing spend commentary, on the dollar shift from print to digital, you noted you cut on some of the post cards. How are you thinking about the traditional print flyers role going forward in your advertising strategy? And would you expect to make any incremental changes on that front in the coming quarters? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:30PM, OLLI.OQ - Q3 2025 Ollie's Bargain Outlet Holdings Inc Earnings Call

Question: Lauren Ng - Morgan Stanley - Analyst : This is Lauren Ng on for Simeon. First, can you maybe walk through your expectations for the Q4 comp? You mentioned quarter-to-date trends are currently ahead of the guide. So maybe how should we think about this in the context of Q4 and maybe what's driving your expectations for this acceleration? And then quickly, just following up on gross margins, are you able to help us size the impact of the tariff-related expenses on the Q3? And it looks like the Q4 gross margin contracts pretty meaningfully year-over-year. Is this primarily driven by the tariff impacts?