Ollie's Bargain Outlets has a blowout quarter as it keeps on expanding

The deals at Ollie's Bargain Outlets were too good for shoppers to pass up in the retailer's second quarter, which topped analysts' expectations.



The value retailer, whose motto is "Good Stuff Cheap," said that its net income increased 50.1% to $19.7 million, or $0.30 per diluted share, in the quarter ended Aug. 29, from $13.1 million, or $0.21 per diluted share, in the year-ago period. Adjusted net income, increased 34.0% to $17.8 million, or $0.27 per diluted share, in the quarter.



"Strong deal flow, consistent margins and tight expense control all contributed to our exceptional earnings growth in the quarter," said Mark Butler, chairman, president and CEO. "Our business has never been stronger and we believe we are well positioned to continue delivering great bargains to our customers and long-term growth to our shareholders. Everyone loves a Bargain and that will never go out of style.”



Ollie's total net sales increased 20.5% to $254.6 million in the quarter, up from $211.3 million last year, helped by the addition of 11 new stores. Comparable store sales increased 4.5%.



Ollie's recently celebrated the 250th store opening and is now present in 20 states. The company has plenty of room for further expansion, commented Håkon Helgesen, analyst at GlobalData Retail, who said he was encouraged by the company's focus on penetrating new markets.



"The long-term goal of 950 shops looks feasible, although this will take many years to deliver," Helgesen said.



Ollie's expects full-year earnings in the range of $1.16 to $1.19 per share, with revenue estimated at $1.05 billion.