Ollie's Bargain Outlet (OLLI) 27 Aug 202020 Q2 Earnings call transcript

Good afternoon, and welcome to the Ollie's Bargain Outlet Conference Call to Discuss Financial Results for the Second Quarter of Fiscal 2020. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from Ollie's. And as a reminder, this call is being recorded.

On the call today from management are John Swygert, President and Chief Executive Officer; and Jay Stasz, Senior Vice President and Chief Financial Officer. call Jean the to Investor turn started. get will over Fontana, to Relations, I ma'am. ahead, go Please

Thank or hello but on be was everyone not to that to [Valerie], limited release section Act such contain estimates second forward-looking this meaning and XXXX. you, expectations materially of and on mentioned copy that can and performance, considered quarter the results release predictions, a may those website. the items, call statements, the XXXX management's company's Reform within today's of be of differ could covering should the found remarks including, statements our financial Investor that company's future remind results of respect issued in actual afternoon Private everyone. this to, the press Litigation Any A forward-looking Relations press including from with call. want Securities I

SEC for filings, a encourage on more detailed place on as Factors them today be statements, filings. new control undue affect or in our to forward-looking of revise review as you or well factors. reliance these for these and XX-Q, You Form may results future obligation and discussed XX-K and are might release update earnings including earlier issued in no our report annual reports events. our future We Form quarterly as today, should undertake information of these not to on only our description that any speak not which we

we closely to earnings to With may to that, and diluted adjusted in investors turn will assessing non-GAAP such the adjusted financial be EBITDA, income, important financial net our measures be measures believe certain over to financial that I on John. as We comparable per our will net share measures income call referring operating the release. are included in adjusted performance. to today's GAAP Reconciliations non-GAAP call these most

our joining call for Thanks everyone. hello, and today. Jean, Thanks,

Before the for I our would like of with world discussing thank our results, customers unwavering impacts our their as cope to family, the Ollie's the and to COVID-XX. entire support second quarter suppliers, continues

to times. store year gross incredible Total We results XX% have to we customers ensure offer challenges together. remained increased and great health delivered best record want extraordinary incredibly in of XX% crisis priorities grew the and in sales and customers, we're than operating less our with safety outset adjusted a growth excited that Since am the managed of need team support our our how Top sales and these have proud difficult in in this the very Our has and to been expansion to these XX XX% to this XXX% an earnings. of I'm quarter. quarterly and during members excess combined history communities comparable what and our report with pandemic, margin team's led deals. margin line delivering an income. our controls net response expense nothing sales and our I tight growth and of our

are the strong comping across departments with our of XX positive. sales Our board XX of

We having were categories stimulus sales housewares, government and serve We for right monies, do. what our flooring, our aids, as the it's ready for a open portion communicated retailers elements we of products open at factors we were combination speaking, prices. quarter. that safely effectively customers them of such health performing changes, top Our the business electronics. to while great the had were stores It's closed other and that and and to bed Broadly and for bath, we a quarter. lifestyle macro benefited and beauty drove from clearly

our visit, customers result, Army and proposition value spending great per often and more customers more with with us a and deals. new shopping were Ollie's we As attracted

demand Our merchant to team long items are to their and new vendors in continuing consumer the items be unavailable and values source adapt standing ability from leveraged needs. new including to of expand responsive changing again stores. once to provide and great team opportunities They essential across marketplace The vendor demonstrated nimble of other certain our products, relationships in offerings to and deals all merchandise our categories. high incredible source and

lots business Our strong sales remains velocity as has our deal ever little to but availability. flow and right continue as us see a chasing of the product we now,

mentioned to so still We us, we marketplace opportunities takes impact disruption it to time of have additional come. for the expect mega in that for often manifest deals full the

position, relationships robust deals to the closeout handle proven Given we're environment. that confident our ability we large in to capitalize on liquidity long-term are position and strong great

operating job third While are ahead. distribution at deals, our The well facilities timed members are our an volumes doing center are as amazing center proven of our steam distribution substantially merchants incredible job an than doing processing full all securing opening team has higher planned.

and product team aggressively hiring our We members to additional additional working stores. to are push hours

and shelves Our an and keeping members customers health safety. do to to team the merchandise, store guidelines our while job stocked for serving incoming processing adhering continue incredible required CDC

are ended shape, we inventory position. inventories comfortable in with down X.X%, remained with the our have good particularly at quarter level and our store While inventories we current

into flow pushing record centers and remains mentioned, product our As at where remarkably are deal strong through our we levels. stores distribution I previously

and nicely us changing demands powder. and to dovetail inventories leaner dry open call into respond what deals. our buy, fact, to opportunistic strategy These practices I of consumer maintaining In are to quickly allow more capacity

We times. with Most importantly, customers who efficiencies the I As I improve level signed better a busiest the the urgency unprecedented sense even seasons prior experience with shopping year. store store of up to visit. our to biggest our easily for per before, new XX deals sales more our have members the be will new amazing an quarter inventories increase active of our of million a surpass Army operations the and said see want shopping team. the members, operating a of members at spending Ollie's was this holiday and us and a will over provide I and purchase. often – greater significant more will ended fresh in XX.X% with more reduced driver offense on believe all numbers quarter

We comps. average which we got products levels, Our Ollie's well of with a deals. our value have attracted contribute essential Like in door went the and them new beyond great believe our exceeded Army. to deals. the and of customers great lot reach customers these the with our We Army, historical basket significantly of assortment proposition

on share shoppers Army. efforts market the hold next will these gains new to be to our Our by to converting

annual very of continue mid-teen comp been growth absolutely our long to our performance term with stores. growth driver unit we pleased new stores, the committed remain has be are We While and as will to solid component looks our and with a a long-term strong important with XX XXXX of year. new of an ceiling both stores that of end, stores existing pipeline our markets. to algorithm XX To mix per

to on the and growth our quality expand And That's excited high the are lot have store with locations tremendous the base clearly consumers to opportunities. about potential X,XXX over a country. across lookout we're very we with growth prospects. these We for is whitespace. days, our always for Value runway a of

cheap back to how In we're we discipline are meantime, and to cheap, to our getting things business. the certainly and what maintaining going doing We sell forward operate keep best, we normal. looking while buy do

or to lot growth release, COVID related from the year. and future tracking retail trends stimulus, our of uncertainty predict environment. of and we the health impact the continue the the in There of slow landscape continued teens, in remains we're indicated this press we progress We to as believe the the second of financial to in As disruption well-positioned we crisis, and now cannot comp to expect marketplace. high benefit to a is the we half these

of could during continue to always, their remain the period. this plans. members long-term As results execute our our I opportunities contributions this leverage thank delivered part X,XXX we and growth to as demanding model and to about unique our dedication excited business quarter, this strategic our the we and to want unbelievable We team. closeout of I be not particularly agility business, team be for incredible prouder very

Jay we through you over are As hand take we now to say, financial Ollie's. results. it our I'll to

good of too the drivers everyone. and $XXX.X before my John. perseverance gratitude Net Like sales had new the across also transactions. we by performance. Their I been than average line XX.X% XX.X% to results very Ollie's am to more truly larger us baskets existing historical Comparable We increased afternoon, ever express bottom entire increased want pleased in quarter, Thanks, than driven Thank and the team. and in store top have We incredible grateful. to a I with John and with environment, basket and you. and the with both increases achieved were sales million. in customers. hard shop setting work challenging very customers record our

the quarter, ending a During XX.X% the in half increase year-over-year in new the the of XXX six year quarter states count. stores first store total of with XX XX opened at openings we for stores in

The under from as as payroll $XX Operating selling net to $XXX.X evenly sales. tripled returning of driven Our across basis XXX for store margin well XX.X%. the a nearly in above of million, $X.X occupancy, costs. period, of DC. the borrowings approximately new to and expenses outstanding compared $XXX new new margin stores additional significant in tight stores support increased totaled SG&A million our included to basis Adjusted $XXX other million quarter quarter improvements nearly continued net both increased supply increased increase percentage to in year. in in generated cash. income control. leveraging flows. increase million the for quarter. At based $X.XX expense the had million diluted to million split the due per The sales, in excludes XX.X%. increased million margin in [increased adjusted chain markets. points and related $X.XX] $XX.X benefits to to XXX to leverage markup quarter basis which stock SG&A increased $XX.X from significant the was profit EBITDA to between in sales payroll well the year. we driven million, in Gross points to last expenditures and with XXX as $XX the increased new we facility, decreased margin fixed due from margin cash higher threefold Capital million the increase the XX.X% expectations $XXX.X levels from strong to prior year. XX.X% merchandise Adjusted as Adjusted expenditures income, XXX million store million perform increased in by million from increased to to by revolving end as share points $XX.X and operating credit comp no Last XX.X%. $XX.X year. EBITDA $X.XX to primarily gross our $XXX year million expenses costs tax our of $XX.X to In continued $XX.X points Operating our prior and was decrease and and the million basis existing historical earnings construction to compensation and last

Our testament robust the proven of track of generation flow is model. to a cash our record strength

liquidity sheet very have this balance we're to prioritize economic in in cash of strong period We going and a continue uncertainty. to

Now for half at consumer year, the time. the including of we’re this impact XXXX of providing the our on turning level to outlook uncertainty, the on based the pandemic guidance the continued and not spending, of duration market back

range can wide on drivers. this a environment I obviously thoughts some with but level outcomes, Forecasting the is in key of for share challenging high potential

in As great demand, the on factors, are the deal of impact we year. high of highly environment. we competitive teens the now the number and tracking John uncertainty including of a stimulus remains as There economic front, slower around and through promotional growth consumer indicated, a potential expect for comps progress the a

XX%. our of at gross to we manage margin, Looking continue long-term goal

impacted to if ramps new we prior costs XXXX full our headwind trends, of as sales to chain This the supply Texas could experienced had capacity. gross to promotions. DC pandemic, in significant margin basis from we we by mix, changes would it XX course assumed stated basis or our be impacted XX for As rate points be of points

changes have Finally, SG&A, no there. know, expenses, keep as will on and you we a always tight always rein our

As point before, expenses leverage typically about we've X% to comp. on is our X.X% said a

performance. we which some do better our that we if expect we QX certainly can in So, leverage, saw than

closure. Our following: the The one stores, opening one relocation XX of current plans for include and XXXX including

four opened QX. have We stores in far so

there the don't openings we While for some into potential next be currently expect to further is year. pushed delays,

level stores, and We initiatives. store expect primarily $XX million $XX projects, capital expenditures to million, for of new IT

respond and to evaluate we continue marketplaces always, our the As necessary. to will plans

now Our the position, the that our of long-term nimble growth effectiveness the us future. I'll pivot call operating model enables for Operator? quickly. and It's session. financial our us to Q&A have excited model, opportunities the operator start to strong back this to turn

first Thank JPMorgan. you. from [Operator Instructions] Matthew question of Our Boss comes

line Your open. is

on congrats great and Thanks a quarter.

Thanks, Matt.

on to inventory in half at availability, year, comps leaner current you John, comp of to that, the of think on think you elaborate product this the industry front And advantage full your current back outlook half opportunity maybe could of as this high trend, time. take that about so your believe teens maybe XXXX we much relative closeout do or timeline, constraining how with just the you cited if on disruption? on I hand what's

I the our Yeah, are don't bit. one impacting believe inventories leaner Matt, negatively comps

store experience the execution better a it's better in-store; customer. level. positive a a actually it's operations think shopping It's I for

liner I about when that in playing the tell So, the was everybody. on what is I you we spoke QX phone into inventory strategy exactly would with were my

bit. not are So, The offerings. do that has to me tremendously customers concerned and great stores position great our business. responding in The one are to

to related back a the think the opportunity comps coming are more bit, people The I elsewhere. coming slowdown I’ll – back to little call online. have the economy businesses it and more shop

at more where the definitely impact. of and an not stores even not XX.X% Obviously our our shortage are having that's shape inventory pretty We're we I’d comp, with retailers difficulty have a issue the being inventory It's good are at and So necessarily all. most of chasing say still. pipeline, in in the business, whatsoever. would we're

we're great. The months, I closeout robust. long-term the or out So, think looking do deals now right from six perspective, still a months nine that market really are is

as big a product call, inventory production now [eight planning they’ll have very sourcing of them be is I coming the are ball] bit created producing. I’ll are have from do some buys of behind from have – obviously little that won't even in their no inventory merchants we're What today. on name There and ramps a in Our who are abundance but the see today. manufacturers a over think we'll vendors new in. They opportunities up from for their vendors exciting of business that folks over those excess it call chasing the mention or I and the stores, lot getting they're right lot them

definitely materialize, in probably sales merchandise the QX, job working. I single said, QX, a out think late is they're not our every that'll there's shortage broad there and of early are as Matt, great based but buyers, probably and for we very doing department a

if That's multi-year think best target, best up right. sounds the in on the from margin then gross year's it in remains last, opportunity I how merchandise follow great. perspective, a margin margin. decline? last gross to gross just like about and models to fourth margin caught the quarter, then about from to lapping then XX% How think And And that, quarter third

going the, a the you to expect full-year basis, We're I not margin balance margin know, be year. Yeah, Jay. stays right, for on managing at the for margin XX% the sales remember, this gross and trends, know, And speaking mean, what if would know, this always targeting on gross guidance. for with more that XX%, know, will long-term a generally intact. giving [head and and you normalized algorithm we're that happen the sure, you is but Matt, levels, merchandise passing we're who basis, mean, on I you we're this full-year knows long-term between consumer. front, to year, value we on strike]

going the you think we're well through going currently. still margin on going transportation to know, with we're a the targeting that really, There's fronts, be be through side, to volatility we're XX%. chain flow as standpoint, putting you be to I supply that on the the as merchandise So, from all side, know, DC’s

forecast, that. full-year we're can't for shooting but for. a you We that So, granular than more can't target know, really really think XX% I get is we the

That's great. Congrats again.

Matt. Thanks,

Thank you.

Sachs. comes from Chandni question of next Our Luthra Goldman

Your line is open.

Hi, taking question. for my thank you

for XX the you ones? out one then were what top about In you positive, that you terms know, were of And XX And categories that, you know, are in talked category your witnessing I that would about that so in teen you? high the well guess, basically those categories, you know, do third the of moment? how quarter didn't think you comp a categories wasn't at

our tell one luggage sense department, makes XXX% you will I no negative with was that only category comp traveling. the which

– very, was it's operate. luggage So and very, we department small a very that

very, So one worked we that departments does well. us other very bother said Everything very was bit. Every positive. not

said department buying saw stores and the followed on our by we during with performing we electronics, bath, were best health all customers changes what really script, aids, flooring, the and as lifestyle with consumer. housewares they the of So, the were broadly, is, quarter very beauty bed the our and was resonated we products selling

all So, very and departments very along comping strongly. very, were our of moving well

our broad difference We performance in furniture and I out stores lawn summer of continue our only is than because What of today. demand. the very say sold see to in ever the a this garden earlier based would we year is,

inventory performing So those not as sales have we to because departments don't with are to the season. the back well nearly

a is and all is still perspective, to thing I the stores and markdowns excitement over stores with the in deal our stores the in than our it's because the really have that freshness have good the think for we offers the season's slower responding that For with. the us actually Other in customer. to driving to consumer our

you cadence a from far geographic Thank That's states give you much. be, moved, different so you standpoint, on my so color any any up Thank of sort and would follow very concerns any and differences, change that know, up helpful. could re-emerge? you

is they all than the and that up within had Obviously, South, regions, would very performed all very, very the which you well. very here And entire our I in regions quarter. the tell one, four and that Northeast, within four the spread. quarter, look they're look strong. four region our but when of impact We and regions performed was pretty timing at earlier the would. There you a I little happened similarly mid-Atlantic more evenly different company at all

you. thank on great quarter. Great, Congratulations a

Thank you.

you. Thank

you. Thank

comes Thomas Our next Markets. KeyBanc Brad from Capital question of

Your line is open.

on I excited again from most you here. this This Brad. good deal thinking [Andrew] performance looking to record perspective? is categories the year? about afternoon. ahead, know, ask, how season Hey, what are holiday And Congrats for on you a a are you then wanted about

I tell said, set of in feel We I right then have good business, very business, we're loaded you, our we’re well. it's seasonal now. housewares, the categories. I'm for [indiscernible] going feeling the bed seasonal we business. coming about be and the would pretty toy Andrew, locked saying is now very are our And the category, real which and is world our is to in bath, Everything going we like pretty we’re to health we're think as consumer fire. on beauty where well is, that right holiday and deals We excited respond most and the doing Obviously, positioned strong. but heater think well, very

performance in good we're another flow seeing. I've expect holes feeling that in the back I like for our the said, categories based shape. remains I year. The and don't great, as deal all real think of big any broad there's we're half of So, we're

see if do then significant landscape? going affecting this forward? seeing continues And pace, to Great. any are as the evolve in at the competitive a business you And industry changes how your so, fast you

competitive any during the We stores Obviously, the any numbers to large was didn't our second that reopened by some compared all were in we've of first slight in maintainable Yeah, we place saw And thus the where slowdown landscape. not couple were these that liquidations quarter. far, very took Andrew, retailer. feel seen we that phenomenal. impact changes of with a but at, really months in pace not very, real

– the we're customer – into. the provide treasure we in being very real like closeout is come that feel able a situation a the the to interesting we shopping hunt just real with market a that experience in unique So,

we're e-commerce comp play, As you have with know, no we're not, we e-com. a and XX.X% delivering

customer seeing during that think like this and in is we're the new attracting So, stores question what difficult they resonating, I store into time. base definitely and period the our of

you've takes you've more the and that you And been know then half last you. know, I side, the on guess you on for the if where paying my margins, gross is, but associate thank know, puts on the question COVID especially expense, year, Great, the us you stand touched the I related SG&A premium out. back you including help pay for with expenses of could

we but to bonus at that forward rate going we're over second and with the speak probably the that kind yeah. more, second a won't of end it. payroll, about Hi, Jay be and sales We the our I hour had is about, as premium Oh, on the employees, leveraged, $X to sales with had got million on worth of that Obviously, that in We a and it of that, were we're forward included able to certainly the know, quarter. we've we payroll, going we for where quarter, discretionary and and absorb frontline we've second way leverage monthly the basis, premium going Andrew. near, don't levels talked pay. quarter. in the the can the something pay quarter stopped trends the stipend, in this was they great be been you And that $X.XX a of to transitioning expect anywhere or premium we run it. manage the kind we've a we quarter to but an of in

great you occupancy, fixed our also know, on We costs. the leverage got

would again, when the forward, normal we're start and know, basis, know again, second over normalized we depending back comp a around experience be if looking-forward and on for I we that the expect sales that, that's but go again, great we for going we on that sales, X.X on on but depending continue, levels and not not on XX% went you but leverage [indiscernible] we'd to sales the we're half, you obviously again, anything, SG&A. leverage a get little forecasting full-year X So, if have to got what to the on basis, of And know, a a happens maybe know, base some number. back we'd so plan, bit you SGA, we maybe from quarter, basis, our benefit the again, north maybe in that to

Understood. Thank you. That's all from me.

Thank you.

Thank you.

Our next question comes from Stanley. Simeon Gutman of Morgan

Your line is open.

date. How everyone. not want mid the It’s sales at clarify Hi, to think I clarify, now that I'm Simeon. just late are think update, teens. you? July teens. I high if we're were I to to slight mistaken, Just quarter And move? accelerated talking you less why than the but on know, know pickup, if that's the I of actually because you right what – opening, XX. they're that's And a mentioned, explains sales And sequential

out know, a days right. probably if you some are were the that release, issued weeks we year had you And the air product. end couple the a XX we seasonal time, heavy during you we Yeah, of and clearance from quarter. conditioners remember, ago, When of

a so towards quarter. of little And the that's subsided bit the end

from know, up, And the quarter. the during a the we bit, accelerate little have we XX] saw to pretty cadence know, you pre-release. good those decelerated the that's had you now, why and [XX.X versus the trends but in we a we still at So, comps closer again, feel ended that

saw a June, May Our July. step and saw down strongest quarter we the down we in of step month was in

that's be is have little about a last far to year. otherwise call, the feel So said And like early comp don't bit, is third have where seasonal just that also are based broad in a we that of in. position We is trend so that. some now John the and stock QX experiencing already continuing the that, we that part we the good of but on out did still stock, we're good in quarter categories

to then, this that of getting business and all can shown it you're staying could being John for is is you or in terms time, and I is an on being at question shorter? that lead help the what talk leaner old it changing this maybe buying. just you, think is just then, age mentioned actually And inventory disciplined is Okay, long about

you you You more, that hadn't before. get brands say, had know, as let's

So, how do you process? manage that

not much stop have getting leaner, new the the we new I turn a or don't Simeon existing think with about room. the full the in-store new rather distribution may big major is, the center great deals We I'm to staying or goods going thing vendors. manufacturers opportunities or down – when inventories. to in operational it's as [indiscernible] running can as stock stuff from have Well, to is not hold an where shoppable perspective. model it I as think think that's good be don't or store in it's back efficiency I be than

change of just with stores down a [applecart] really huge I from of shortage little a that a something not get bit not would not think a that's perspective. we of more be We're turning anything strategy, product. nature. the And we or shoppable get fresher. will not little little to that It's concerned that in change easily upside So a to so too the there's – your

months, flow have ability goods for where available a XX for. with don't deals sitting. and there's move we're months excited that speaking themselves, mega we're talk that pain we three I tell else, then know for will the bit it looking So, always a six normally they present we're the becomes there's have little price to it is generically fast When remain somewhere you nine no hard will of to vendor a at just deal time us months, months, about rule, strong. I when or

time So that materialize. to little normally takes bit a

we're Plenty deals. we're think that, we're the maybe great getting of I away – We're plenty seeing deal but of in what flow months, so six today. excited months eight from marketplace. seven, probably

So, to stores a deals distribute them. as the take some see can will hold larger we're they at we a handle then expecting in present and to that themselves later date

Okay, thank you.

you. Thank

you. Thank

Sandler. question of next comes Piper Our from Peter Keith

open. is line Your

wanted looking I [wipe the your change just or categories, home and and everything I housewares kind closeout to to would related your coming it home as what dig might sales, to if has we understand maybe been sales specifically related quarters? afternoon. hot] like retail. And bath good know John, cause some mix at into Hey, over availability bed I the XX% of of at of or try guess

So, strong? which consumables, is come dynamic those remained in is And the has closeout a to similar could availability two categories also going down? that there and happen

that's the Peter, definitely bath lot of bed hard not they their objectives area the in merchants inventory to a which area, as product housewares their HBA meet having need hard in, well, and question. you that are great consumables reside and meet a obviously I a and will finding our working plans. we sales the but and tell time the

So, we little a in the a like feel to previously we have we're items on bit bath some don't feeling of were pickup categories. had delayed. bed in shortage actually and going those ordered We're that

obviously you with till of benefit during goods March, be us starting with, there's back know, that we and seeing QX, which delayed a little So, little will might bit have QX COVID, a more would not expect. than in what challenge some a you even been may

have or basis there's to going point don't historically expect think don't between XXX we basis I company a categorically seen major a shift between shift. shift any point be XXX what real from I So, a departments perspective.

by and for QX ready department, in-line with I think we're go think set expectations QX. and So, our and I to we'll department be

So…

customers you've interested more was comp And be acquired hoping of understanding around have able traffic and good. Okay, quarter? I you in a little you new the some very to traffic might ticket I'm detail and during guess that the specifically whether Also comps. a provide

is XX. And were XX%. XX% average The basket Yeah, and was up up by increase Peter, Jay, our an was average this transactions in that in driven unit retail.

we up nice well pop saw in So, the UTP the average the as as a XX. in on retail, transactions

new we up are spending glad customers see into you new working non-Ollie's can we're So, know, customers and the that, box we you that we're know, Army absolutely into to to numbers the coming certainly attracting a and are understand lot. they're point, going box. the customers, and your there And

the is goal speak them. Our to convert to Army them and into

coming you very meaningful, well into outside the lot those now and underway theme, bit eyeballs for not, deals little when that, old of while it's fresher, the viewed Army customers of little and addition, ads, way store they we're but these they're you a leaner, they're a the kind know, know, you the inside Army. John's know, a circulars by you and about we going on get the know, pop the the run a in we're So, both little to business school,

you. Thank

RBC of Ciccarelli Scot from comes Markets. question Capital next Our

is Your line open.

you under because to me, ago. Scot months takes morning. just you've good should go pricing see process previously commented started time road, can afternoon. when down the merchandise, that deals, five, reconcile us or call something really six help Good it – John, you've kind you understand to about the theory, it, the know, have mega months the where four to clear but has to potential know of can you Ciccarelli for or the for nine talked six you in

X, of know, kind And you months sooner so, would sense. I know, you make think, would X X, I than guess just

later? So, of can understand you the deals of much manifest timing help so those would some kind and why of us when

I to product, think magic hope retailer the how another short have science not shipment it, we going for we're than long so retailer hard out is no and date, like cancelled said, at it was the would that we're go, to expect seeing to not going matter to they're was price works, going We're there's that and part major to there's buy the a higher are will starving, to by on and it There's were I obviously be order have another had we're their of for I as have to we're we closeout potentially the product flow so of not not it's product. to be closeout and come is is that out. we to that's what delay model there out play main like hold it looking no no, where and strong. in deal not they – a of how time take Scott that states they into sure that the it said,

that new deal So, the vendors we're and manufacturer. today stronger, is flow been major are getting has strong great,

here and a good we're we're don't so I product sitting So, want good], to you away very not for in getting take a settling that we're [not guys position.

indicate not and as comps guys Our you – we're growth that comp story. would We're know, a not we're really story. a

we’re and the offering the resonating customers pretty teens call what So, world-class high in still powerful are retailers comps, comps to in market message I able with is other versus be which selling the continuing what today. we're are the and deliver, seeing to still

categories fully it hard know line you're guess you so, deal then starting intuitive lot least, of world can the a and of flow just getting lot to a some retailers us other some broad retailers the strong because you're I a of like or what there's kind where, are just seeing help of the you shortages, be world chasing and that where helpful inventory, where understand you know it's are experiencing? may at not – That's seems line of also broad

The in would the the you're And tell call – flu we're category. even than they’re we're We're and team come that manufacturers makes work product electrics, in happened think categories, would I know, last seeing. in and what as having we're it still little the the excess, leaner other as would in open departments sourcing the have a – some short used we a to you - you to there. COVID. these out used we guys small I filling which shorted time. getting, seeing dated is expected and about, I a be bed cough housewares sense harder call merchants big seeing little bath this Domestics, probably categories I for major definitely merchants, you seeing to bit not full excess off are still that the where we're – cough not see the normally food and not to a expect would which cold and in that seeing seeing area. excess the Yeah, they categories category, excess food our to be to some get see but of called-out device. what according as long all the that they're their has They're category doing been product, product normally with with to the total logical with would

having the So, any issues with deal we're flow. not

Awesome. a Thanks guys. lot

Scot. Thanks,

Thanks, Scot.

Thank you.

from comes question of of Bank Liz next Our America. Suzuki

is line open. Your

Great, getting recession. as about some more dip thanks double economists a normal a guys. I into are worried guess,

environment, possibility days, lasts that think your would the just versus as, business just So, next the how thinking you XX know, and for that How XX you longer one do environment, how are that in than adjust months? you perform? could current about you

or or tell recession Yeah, proof we're you we're being would Liz, recession I resistant. resistant definitely recession not

models times both. and been bad times. good proven in Our performed in We’ve well,

I to a think the know, XXXX. plays hand our have which into potentially where trade they recession to down in people to that value, come in marketplace and you more have, XXXX, flocked

does call perfectly if time So come we're that. that velocity take to ready want and volume, that when able placed or on and model additional is you our for it, to and if

the would kind of very the dynamic on think know, nimbleness did in go in key same, after be I a if merchandise just a the to is into to you this we're and go demonstrating double dip that general buyers well-positioned secure for and to continue ability more on know, you And deals, Yeah. model we add time, on. do I mean, this be certainly front recession, and that key Jay. Liz, well. we'd product of the I’d we,

those in Great that and your or year, you've they've how you just much guess getting on Ollie's new be you that your members changing shopping members customers if mean, membership seem as you of I XQ, from year-over-year quarter? Ollie's gotten to given about Army on I the you're a could behavior up And think holiday, that you got, just converting this a bit? new thinking last terms approach how in a be Army new follow that are think do about basis?

marketplace. probably answer with to in the is for know the uncertainty because to out play Liz, that's economy that, going dealing me that I the how impossible that all don't we're and

we're I more strong sales. be but poised Jay than advantage motivating – Army with accounts guys existing So, said, Ollie's new I for our of attracting and database, obviously know, it. XX% customer think as of take which customers we'll and as the to you numbers And our

of part success. an they're integral So, our

been. going out So, to that's has what I more on. we'll the continue stretched be think what to much focus do is season than typically holiday

be go, shopping talking Friday when we be than think that for, think will CDC we'll typically – a what hour going to to way still can it's there'll no COVID is for I way they’ll Black guidelines I world do December, four do in at. we're the We're a see and Army period, I is the ready in the be have and and which, night it Army what follow patterns. Ollie's with Sunday there's today, unique we’ll Ollie's set night, we little which think early be about already second ready in a on stores. different for normally our be that little internally but Obviously,

we out customers and the and our to changes have bit full on some safely. customers not going to we're can stores and are make to little stretch So, handle make a sure that too and employees actually

internally we're that So, talking already about today.

So…

you. Thank

Our Fargo. next question comes from Wells Edward Kelly of

Your is open. line

afternoon. Good guys. Hi,

Ollie's Just think is new members a of of guys the to know cleanup kind the the a number, from that some curious about of just that year-over-year? way is stuff you first number tickets number? you done time-to-time follow-up that know, like, I number, on have in Army clean kind best

two-and-a-half membership. hiccup very a clean years since very, clean consistent I that on Army report ago how we that's a ever years Ollie's been ago, or very think active hiccup we've number. Yeah, and two the and had And we

you're you do think slowing potentially know, to to, things happening, teens high you about, the as at gone just to that? how importance almost we you're know, doesn't thinking you a as the be about, drivers just just know, Or of benefit really I'm you product that’s individual back I bit, Great. a running, but kind of mean, is in of weighing rate with then probably think of it And back half it more double curious we know, digit stimulus How curious you point. about I'm kind about kind know, maintaining seem a you're cycle? to, now as this half? the comps, stimulus of

whether John to high teens I'll we Jay. mean, like can components And home. now. we're get in in start is right, attribute. this that the would the Yeah, shopping, to really and wanting being bifurcate home them, slow. whether and it spend is lot some the it's entertainment, I know, commentary, expect not it, to we that we said, all home you and I refreshing know, being, stimulus, done something whether via it is their we've running out you people may It's to or mean, that have forecast of the obviously, their in it's chime a And in of in. people hard wanting money compliment the really categories and

really all hard it's So, to bifurcate that.

are Army is they in and what control, about talk we which making sure can means, we engaging if is, the that thing have we controlling one and in other control. retaining That's can the got those customers. to the on to not converting think them them new Army, or customers what good the talking and box, I we've a focused them experience via

or tailwind new again, but we're there it we So, some from customers, to be level would, know, any but slow, theoretically not we position forecast in think you would to of I quantify do expect these that.

Thank you.

Our Nelson next Rick from comes question Stephens. of

is open. line Your

afternoon. you bringing apparel. but you interest always, know your buyers, John, apparel lot that's focus guys. any area. curious a availability in I been in Thanks the [indiscernible] about Good categories the of new are [indiscernible] have done historically any not merchandise new

If it have it's with there's excess we of we're call looking that deals gear, to for you not a department. going a Yeah, one-off, or that hunting that. out our stuff that's expand apparel the regards to we that field. deal the but about department there, like expand that T-shirts, who at we I’ll nature from the those the, blue standpoint, increasing probably may to know, something jeans, ones socks, in clothing look category, little related, fashion world in expect We're coats any clothing leave outerwear the very of would continue not Rick or In material you other fast in Rick. definitely categories. basics, to that plan stay interest underwears, be we'll fashion play clothing know that comes do

categories are now, all our be where In terms going we're of pretty to set well departments to to I fact, think want in not arsenal new right be and any adding today. we our

market, Thanks in for terms of the locations? that. Curious up you could if rent estate real to what thing he know of and size the quality

of good Yeah, pretty Rick, pretty definitely It’s seeing today. locations a there the set out we're marketplace. in strong

get those going before, – to as Penney's, us, perfect getting for I JC know, that had we of how Us really the box yet. you Kmart, size size easing are people Rents "R" to difficulty think are, figure deals. There's it's the box stronger demise others continue as said the to we're retailers share our fair more have Toys up, not survive. but break and those but and much to more out

very estate we're think and I we're team to past poised us. the that every think but acquiring. locations rate said before, estate busy new takes getting right good that we the that scouring in for the I definitely I real we've for day at deals time, grow and talked as And we're continue in real it to think each our about is

color. the for Thanks Great.

Rick. Thanks,

you. Thank

comes of Our Citi next Paul from question Lejuez Research.

is open. line Your

Hey, this Paul. Brandon for Cheatham on

market the about internal if favorable you from off doesn't you're based new know, Penney, as could on doors, real constraint, consider on or that market is mentioned you cadence if seeing, follow estate JC Then more switching you was getting it enough? favorable opportunities like is you're terms that on that terms the opportunity? sound ever would XX that are I necessarily Just new store up mall

We're malls. big fan not of a real

of having getting Penney's or to access we being from mall, mall a that access Penney's so closed of have the the de-malled, to So, the malls the that a into either are mall. There's interest in they're zero section of JC no mall and JC off lot or the are store. buildings our attached

you and are the and gut]. starting out to by starting they're changing them in as those, more most out malls centers So, know, strip they're the make tearing [metal die the in to

our store store in constrained It's of with terms by a regards So, of on ourselves. to our matter new is growth growth, availability. we put restrictions new constraints internal our not

per that max We available We we one a do. we and feel the for us XX our week complexity be there main to And growth, on really is want reason the inventory, or there the run side with inventory, XX is think people keep not stores. to it's constraint hard a sites It's business. what collapse. to most right store these work of of year overall business. do, field’s the more So to could business with that really people stores of the the estate the to it's the culture real new it's difficult

develop So new perspective. many internal managers potential an as we development from want to store

store So, we capital. moderate the human of growth because

you. Thank

comes Jeremy Hamblin Craig-Hallum. of from next Our question

Your is open. line

the sales, XX% you're of is QX? the, or kind that is by congrats clarifying and the this of of to of leverage to level kind specific year, Thanks and is obviously that that the think, guys Jay, more I something you SG&A, suggest getting start you on said, you just that back impressive than normal, thinking for on did the half this I are execution. want

you which And be we'd QX, and plan actualizing know a full for a on compensation a based know, kind of keep year would base estimate is QX that performance. closer the mind, was we normal in pay full-year reversed in QX, a had what be That's to of our then we base year of outdated, and XX%. plan, last because lot

bit at level. a normalized So, a headwind a sales of that's

So, [indiscernible].

where comp normalized, point them, the be know which those you year most of on hit That's I that to be, or the you be of going that was of or assuming the typically whether typical hours is than year? ahead Yeah, to all part you've question. considered pay QX the plan pretty and caught normally have Ali's army that that more up would you would well have I'm you're beginning not on to guys night, tracking likely going Part operating that have? you two the are one below kind know, pay, the point – it's the that's for less the or the QX; targets you something now – would to of of your in where about if to

you're the year, Yeah, ahead [accrued this from standpoint, of compensation that I gone now. and right. mean, bonus We're a tracking well as to] we've we've plan

we've and So, actual the that forecast got in we've it got contemplated forward. numbers

know, as basis employer XX You John that. operating well but an you would we're contemplate let in. hours, then chime I'll the on say, And ahead, but the

Jeremy at will hours Yeah. the the during open hours, operating to to we historically. regards up as plan till eight in have with keep we open morning quarter we're our fourth think definitely We the XX. I

in in is our box the more, and of I opportunity shopper the they will four shop, the hours since more we the no year. obviously the give platform the walls time out giving busy The have had it's spread think to be. consumer, and e-com we more a

any don't be will So, longer shortening I think problematic than it the have. up make what and a we think hours I we

over poised time. a right. have Ollie's earlier, be as So, period will night of to I think spread we're do Army mentioned longer I think the out changed and definitely I

So and have have compression issues safety from we the much so don't perspective. stores in a

probably and changing. the going we're to So that's something be definitely works in

then QX, a in $XXX not level would or you know, kind extraordinarily actually maybe on you at And you cash have know, your and and question towards I your inventories, of that slightly end working great. typically you some typically Okay, with at is last end but you just, of that to for the which what capital over exit the QX, balance here above high, you but the sheet that's have usage year. know project levels with would build holiday, million are of

that you're any kind alternatives share if can be know, you flow given thought would you're thinking color great? building, the that for of is cash about other some board You

to Yeah, is position the This mean, talking and that that we're going there's are Jay. Until is cash future. absolutely, currently to and be board think be sure, And the it. we makes sense. I through about pandemic, deals get maintain conservative. the Jeremy. in and I our we balance going come to And John

after we got So, sure go want aggressively. we've make the liquidity that that to to

the you talk the board know, that's longer, obviously, when six going to work is right, that to then way we're together the we return and So, will time in let that's possible. maybe the months, to pandemic will settle best we to maybe out, but shareholder cash the

Great, thanks for luck. the taking questions, Good guys.

Thanks, Jeremy.

Thanks, Jeremy.

showing I'm back call you. this Thank closing further remarks. for Swygert no questions would time. turn the I to over at John any

sharing your Thank call. you our you, operator. continued Thanks everyone participation results support. look and on quarter our third for with next forward earnings to We

for that conclude gentlemen, does participating. and Ladies conference. Thanks today's

You Have disconnect. a day. may all great