Ollie's Bargain Outlet (OLLI) 27 Aug 212021 Q2 Earnings call transcript

Good afternoon, and welcome to Ollie's Bargain Outlet Conference Call to discuss financial results for the second quarter of fiscal 2021. [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; Jay Stasz, Senior Vice President and Chief Financial Officer; and Eric van der Valk, Executive Vice President and Chief Operating Officer. I will turn the call over to Jean Fontana, Investor Relations, to get started. ma'am. ahead, go Please

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

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

to the in these our of that And the comparable assess financial call referring be to included financial to those John. will I call non-GAAP measures detailed with closely to financial we for of are release. most over more GAAP believe we that Reconciliation will turn performance. earnings today's factors, may measures measures operating non-GAAP a on description be For our investors certain important

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

store positive Ollie's sales performance incredible comparable of quarter up comp two-year We last against year's profitable in stack the declined comp quarter and we extraordinary store second were very pleased with XX.X% We against increase. history. delivered largest XX.X% our volume as as most are XX% an sales

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we growth retail and extreme we of believe value in to benefit the continued sectors First have the the disruption a in attractive the company are most know-how relationships one with we foremost, the the scale, from in marketplace. and and

we of have We our and long-term believe to business proposition our our tremendous runway value growth supports expand footprint the plans.

deliver confident the our as generated values ever environment The to execution number incredible our strong overruns, customers. excess As always, opportunities offers ability in we canceled inventory, deals deals, of orders, and we to flow a as our categories. plays Deal begins our across We to plans of our and continue closeout ways, changes, current It of laser and in bankruptcies. see focused all provide product seeing on our innovation that all are fantastic strengths. remain with to from profitable package ranging amazing remains growth.

still closeout quality our excited coming We are of very about the way.

see. all us proven strong exceptionally to size, We position the buy our powdering we the us any liquidity opportunities have handle keep ability Dry open and choice the of deals ready vendors. of our to making by to at capture remarkable partner times

disruption. market said in As before, I thrive we times of

Due to two in three opening relocations. of Vermont, XX quarter and this to total We to the customers. Milestones and We states: during XX the these permitting to year, total the added an the store projects the construction opening including stores despite has new of stores job executing amazing expand expanding to stores states. opened of the we to pandemic. year. XX now team and have Kansas, expect open Overall, the to a new of Ollie's and the XX and challenges new this Missouri XX communities opened continue and include operating delays, done brand our quarter a during XXXth enter

availability our great We excited and continue we beyond. the sites real which estate year about pipeline, strong build to store next as of are into looks out

year with unit culture a of to and rate optimize and Our and of million of an penetration keeps period of a a all-important ability members new sales with high new are Growing highly openings achievement near-term of our our base a XX% driver Members way. priority. refine by success our To continue be coupled maintain with Army XX.X the relevant component over with they Ollie's end, and to consistent more active more in in ever. XX cadence target growing. programs frequently to is highest stores, our member spend key us communicate per Army and strong redeploy to customers quarter, significant our of XX membership the most year. shop as our is and spend the prior demonstrated marketing the sales dollars customers. critical us. that This to valuable to This is we store the continue ensures of strategic retention our members growth. a as quarter the record Army in our our growth in money result profitable XX.X% the Ollie's Ollie's The element increased in a

threefold: customers customers. and Our enticed lapsed focus our to customers; acquire deepen is existing new with return; engagement

testing, offers have ads, testing acquisition. reads different customer and we for include, been digital early new with and are far, pleased We so with particularly each for customized recent Examples card-linked the strategies channel initiatives.

learn best supply and our in and chain successful our up business. deployed. industry tactics, continue from most and other and stages inflation headwinds, labor broader continue ramp these dollars test, the our impacting we challenges, including early to see we'll efforts are We retailers, Like to

the of issues year. back chain the We the supply navigating timely of currently deliveries and for are expect product half

recognizing in a our centers hiring market. working to competitive distribution in and we stores, successful fill operating still are been have we are we highly While positions, diligently

also these in of of the are our challenges believe to which continue Overall, we and, will incremental transitory in domestic pressures. to and offset. hard transportation leverage model business flexibility We that meantime, cost these to mitigate are the are international many experiencing cost, we we working nature

product are of distribution our the lots challenges of labor shape That in our ending impacted quality last said, have and overall, particularly has good compared inventories at We pace XX.X% up throughput. year. to centers, which persist,

and search been President Importantly, and overseeing to on are productivity as basis while May since joined continue supply is as chain Valk, taking our Officer, Eric for der in issue we necessary us supply the our needle in the Eric and and expect Chief He improve. in direction. continues. drive Operating interim increase has actions in has a who a trends we us. joining productivity deep and has van experience an team to see identified are we to this our temporary and the chain Executive immersed Vice right already and moving new opportunities knowledge leader implemented strong to

third This third driven a third between sales at growth sales we by we our Looking delivered comp stack of to on a XX.X%. of own XXXX, the ago to comp quarter. X% for quarter, profits from the continue record year, two-year great basis the quarter year X% come and against numbers sales as expect for we up

we landscape to are focused are While a macro market the lot this on navigate our capitalize can where in uncertainties there environment, leveraging disruption. on strengths and of we

We our Ollie's good grow to Army. continue great about customers, expand provide very to and to our feel base ability our deals store

business work do as we We best: to can we model. on what a execute do will our what and continue stay focused team, control,

ahead, they environment. our algorithm are to for communities Looking our and intact doing support customers remains growth our bullish and XX,XXX thank team almost other about I to want serve all and this each as I am in long-term as challenging ever members business. our personally

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

John, and this afternoon, Ollie's dedication was. made for incredible Thanks, teamwork start thanking success I that everyone. and entire that the their quarter want team the by to good it

basis as outstanding period the comp are positive payback quarter year. to share decreased throughout two-year In sales $XX.X of productivity a the by store we compared this XXX XX.X% totaled the XX.X% our $XXX XX.X% relocations. resulting due For new XX%. $XXX.X and million less million the for decreased record-setting per stores to adjusted the have decreased tight $X.XX. points a $X.X end These controls to decreased million, year-over-year. Capital the count. with their primarily ending decrease by from Adjusted offset X.X% decrease increase, Adjusted we period, as million, quarter in related in quarter, XX.X% income, increase opened end increased Comparable of XXX profit in basis net partially million sales to due million XX.X% in the seven facility result million credit Operating excludes deleveraging XX% stores to another quarter. and and Gross totaled Adjusted the expense XXX of income under cash. basis $XXX transportation from diluted from million, year-over-year new At our a for organization. in costs, revolving margin, the the points to stores. with to points store to as stores, than year. SG&A due prior gross with Operating and our stores partially expenses of $X.X very This which decreased chain quarter, significant decreased had opened deleveraging a XX.X% prior merchandise compares margin states, selling and in margin The EBITDA two to stack. the year prior $XXX.X stores stores XX% expenditures offset drive net including XX.X% a for to SG&A XX tax years. borrowings sales earnings the compensation decreased Since year. a increase in prior pleased of as XX.X% year, primarily stock-based sales improvement XX% due expenses XX percentage no quarter, new growth the and to and total $XX.X basis benefits margin $XX two ROI in the points expected. a million. XX.X% with in million, existing the XX net EBITDA of continued to XXX increased increased we higher expenses of we've $XXX a margin our primarily decrease in to was new XX totaled additional the supply XX.X%. to second

we to generation Our shares. repurchase good we Year-to-date, use of proven a have unprecedented in on of full the stimulus. to cash not year perform allowing robust strength Due 'XX. of the to with to million growth, cash you and shareholder continuing level quarters some our levels in will us the strategically share fourth continue almost our benefits at our increasing invested we to given testament track buyback third comparisons continued of shares, model, as I value. fiscal are Comp and are invest remainder the sales uncertainties, from is fund policy flow providing guidance, and record the last putting top-line challenging business thoughts our our to $XX but economic high

a our last the was XX.X% quarter store As sales reminder, year. comp growth third in

this on we stack a For growth X% sales year, quarter X% expect basis. the third comp to of two-year

in gross all including retailers, supply pressures increased the anticipating to transportation impacting continued due chain headwinds ongoing and costs. are labor We margin

manage to and We mitigate the can are expenses. higher doing we what

increased significantly have pressures XX.X% rate year, now back revised are to of we gross cost margin for approximately these a the full XX.X% year. of the in expecting half As the

to compensation; we Our are belt, XX stores of local on current the the stores, we following: XX our under feel XX opening two can but include we with achieve our relocations, confident including target, that dependent plans share construction related and effective $XX.X outstanding the of time; shares average any from impacts excludes future rate million benefits stock-based XX.X%, and buybacks. diluted tax an before which of weighted approximately permitting tax to

growth long-term We us the the the our our respond start back strong I'll effectiveness that operating position excited as to necessary. the to to marketplace It's turn of evaluate nimble to now continue and our opportunities financial plans future. keep for the Q&A session. the operator call will and model, Operator?

from Matthew comes Our Instructions] question first JPMorgan. with Boss [Operator

proceed may with your question. You

up and your on quarter comps up to is quarter relative for maybe to XXXX. third guidance were So, X% versus second to in start X% same-store XXXX, sales, the then the X%

at relative quarter the So basically third unchanged quarter guidance second the to midpoint.

So, quarter so the from to as John, color you third XXXX? second to progressed? And any see for guide the what did to relative quarter far on X% maybe comp trends comp that relative August X%

full-quarter first. August it's feel - where really fact quarter. the take that a where we're not to throughout just comment very, little it's because And where there where and stimulus to We're basis, we let due as we're going intra-quarter kind year in QX, Matt, of intra-quarter sense, right as doesn't - through going it is comfortable some on year months were right bumpy the little for Yes, well. we choppiness this me progress now in last we're and the to the commit lot talking very make is at but now land of the a definitely at we

dollars, March, where lot QX May, we saw a in would numbers. obviously, down numbers this and - stimulus of relative we similar June slow we're was the think July. QX, I And those on comfortable guiding basis So out dollars year and really to and you from to tell we're there there, April a them during very for

slowdown we of a good May, we're were real excited we where to but and land. in stack really running two-year still So, a we felt very saw where XX.X%, from we deliver

strong And we're inventories are for think right excited real are so, where important flow The now is the and QX. is the good positioned in piece I position. deal we most

just maybe on follow-up margin. a gross then And

first beyond? XXXX if you to freight I back points and about in margin you what's to next and basis gross Could year? about assumptions? get So, full half just basically merchandise we through And margin by the change year exceeded were and points. XX.X% the to walk to gross XX% second basis thinking Just both in margin XX the XX any think quarter there now

transportation Matt, this abate supply to increases time seeing and And right, the that. right, Yes, front obviously, they're going big take Jay, is headwinds really the we're and any these there, especially continued I'll on soon. with in chain, not

XX.X% to year the but for XX.X%, getting do on And talked costs looking XX.X% for half, we a did job margin. going about at full the in that spreading the year, the a that's side. the an on it as And the - on QX. in margin, control next mean call, with the great a managing So, XX.X% We've because QX, - just now We have what the we more margins to have we had And full the XX.X% really taken and cost near we to can that point. inventory. being obviously year. talked do then the expect took Last unwinds to lot in at back to then to they for this your quarter point back the that I we versus flow merchandise which have pressure probably can QX we're for impact right. little changes, so at, XX.X% hard a did bit to supply we the buy year. what certainly, these of we QX. hard work especially the going We're a we We on on inflationary just to about margin, strong extent, in environment, price can, like that work is large side, in merchandise chain, QX full

in in And increased next on of certainly half, so so margin expect we as next gross the expect we're do give at would first we're have position well. - some pressure year, extent, some But not giving necessarily additional guidance we as margin. obviously, the to we that QX pressure we guidance not specific a look for QX we're to the year, back to But half not there. in and, would

Sachs. Our comes with from next Goldman McShane question Kate

question. You may proceed your with

you still time I much inventory obtaining comments regard a to question. you about in so your supply into despite maybe the stores? a were ensure are there talk Could your with bit detailed you chain challenges. decent prepared having you you're for little inventory, very relatively strategy still some taking guess that Thank our getting inventory your to more that

Sure.

marketplace no I one is important there a marketplace that in the is is closeout out think today. thing I misconception think deals in is of there there shortage the potentially

really each we doing that merchants category getting of a a great marketplace of in in on every buy the lot are flow Our are and product day. job every seeing we

there of challenge the is for an side has definitely the with of Supply business. us. all issue not a So, merchandise chain definitely been

We are more are, a seeing. importer, of of folks that huge have a lot a think, nothing are, created other But headaches not which for lot I are share we that fortunate folks of other a fair we have headaches, but them. lot our that

goods into building shape I to and good the to the think get we're stores. pretty the out in

we're not but to in of majority have and in you that, those We that our very diligently stores this the tell take point very are with pleased time. at, very, dealing I stores of we're overly a at exceptions would but we're we're shape working of where with today care handful good

from Our comes Morgan next from question Stanley. Simeon Gutman

You question. may with your proceed

This is questions. you first, Yes, Michael I wanted follow-up on for Kessler Thank the on to on sales. question for Matt's Simeon. taking our

at they're two X% the we comp, in X% in with this X% see is disruptive last the kind some years, through, range the that outlook, to time. line period in most unexpectedly may X% or two-year basically transformational running and long-term geometric occurring Looking your stats, of that in to arguably, your

last all my necessarily holding I I outcome? year, had it you think is, picked at how some seem may you but and this So, that business this look doesn't are this on viewing say, like And of guess, you incredible question to uplift you're up.

curious pipeline, mentioned, any the - to needs to you concern, be strong? especially closeout how you pipeline that. - respond guess, very the of given that there I the is that I'm Is So, actually

year. duplicate. were in about unprecedented points an not something last numbers this from takeaway year. basis It's I can't Yes, that's see, PPE XXX our selling was we year Michael, of Included think main the last is year that

peel the when call the a it, much you from buying better for COVID frenzy we're the So, PPE out - doing perspective. people and I'll

it's comp that to a way to X% would comp, not to So, X% not or at look fair look just the at. right X% be

I to that attract during onto customers - think we've have the period. holding phenomenal that done the new able we a we were COVID job

data better past. in a having as customer All had of at than them the doing our tells us we're we repeat

last year. to little I out with a be year - off that impressed peel would and from bit overall a this venture our backing So, more we PPE, probably results you'd with more little bit if

So I sitting in I think great think shape. we're we're excited where we're and

on If relative that look of SG&A we the SG&A That QX your And And is follow-up did years time. leveraging over line a my of it SG&A. helpful. little by shown at XXXX, bit. record Okay. you've over great track rate to a delever

guess I that kind that a line So more we there what really And labor thinking of forward to is how comp Thank you. relative maybe other environment? the any over key pieces is seen normalized change callout about should time? the that be in moving we've

little year would wild driven rate on that's last we labor you're sure. SG&A of I dependent year true do the is what I course, up But not were us take a adjust we in for an primarily wage that would to normalized But we're payroll decent really continue the And good swings of to for to line to quarter, talked in with of think that addressed very the a and of, it we to XX% on for of sales. that market-by-market, well. is right at basis on so on it that on on and of in annual we're say, to them minimum say where said, little Obviously, year where about stores, very Yes, hiring. question. expecting. the at something in the to is as side. 'XX, kind compared and the board, that's we've a Yes, target we've going I put across basis. SG&A going our store-by-store, But with of on basis did we this competitive Generally, as rate full-year needed we're a going in But wages far market We've and kind have right, mean this range, we holds to, be the basis SG&A would compared is we store kind annual XX% impactful. And manage again That's an bit it target. a there. I a bit full think delever basis, our year that pressure expect estimate a delever. sales, market-by-market for

Our next question comes from Randy Konik Jefferies. with

question. your with proceed may You

a lot Thanks guys.

Just their how going things impact stimulus kind normalized to that, to thinking and that of parsing much been forward? like the of business the out that able think and in have the at about you rate And the about impact the spending go back and run what's you how terms at - spending of the second versus ticket quarter? of transactional the when when they in look comps the Ollie's of look velocity you impacting terms Army, patterns in did change

Sure, Randy.

us take tell me sales. items Let off that's to regards the of toughest and got to stimulus and first I one for one out. the on peel impacts probably you figure the the to with that

been in with retailers reopening So payments XX last months other one, retailers, three. other two stimulus time the there's closed, with and the much being noise of the so

successful So, off. to that we've not peel been trying

because perspective. perspective. on feel the done our story of store they're their comp I penetration, record intact comfortable on year in focus remained the how job Army terms of the regards our right business phenomenal. conversions their we're try that, up be from is that's in we'll But of lack will They're Ollie's go actually script, growth their X% they long-term spend from as they visits, with accounting sales we're Army is ahead the XXX% Army bit that's for but our over secondary in than members With so the base. has said algo frequency. think of bit on now a new and XX%, a look on We've think the in to just outpacing perspective we at And But non-Ollie's now. I think from I new a are down our great overall the business year the overall performing and still on past. Ollie's takeaway Army, sales the PPE, XX% they're Army, per the had terms said a how be - look we from growth where - I little And comps closer then at with it. to it. them our the now XX% our very to would to on a of in last feel we last we We've and to the a about very, outpace little bit the But consistent. they X% more XX% customers very retain little a over Army is slightly more always existing which the the transaction side, reached our of basis, they're main right we see always

may. if One last I one

a made You etc. are lot of had chain, your point around costs import their to issues added competitor of about seeing more a retailers supply other - that of lot a

when that does cost, not to to of forget need a occur? more kind going cost, chain, look let's terms actual you supply down of forget the bit, expect time, forward, when - at those the So that's of about you are say, a kind process when warehouses, normalized out say, processing in just you able what - do in your not process the basis being normalize the on little but

a a now, eight where we think on I we conservative much QX. would think right the be, I right tell the we've of I to to good should in get we on want Randy, a last of progress you would be lot basis, pretty we're made on weeks pretty by them and but would things tell you Yes, end pace track

Our Thomas comes with from KeyBanc. next Brad question

proceed with question. You your may

taking bit was that through in could talk pricing some Thanks are you're where looking all to against pushing and your pressures? about curious you you you competitors Can in backdrop higher if areas you a Clearly, are comp inflation? more getting what inflationary your where quicker do you're you talk, I that how prices. seeing flexibility for question. at little my doing all this are John, about perhaps

Yes, having around Brad, than this we're no board. point, retailer cost the - pressures other different all terms of we're in any at

So, And what to we'll we're best get year, working a able have each see because think the keep entire for and But and order getting. do this on where their into these value is much we're a competitors doing stores proposition of our this to of ability in and harder with our are the the I closer actually to to margin we're profile every do, backwards is lot bit model. our that's - going than we're these a day we where offset doing we pricing but margin margin expanding our intact, buy get some merchants keep And to are the but can adjustments appropriate the to and to we get and for make we're the they do to the product can the tirelessly there, previously the were more adjustments we're in making, the cost. than little looking the making some chain cost. people that they value all push merch most supply work we offset it don't we'll be to do price vendors of

for such but you that can that the inventory numbers I sales And, last need were markdowns forward? about year, here a to slow talk the record I of and inventory going feel do the well you against anticipated the it was today? the you how think quality very bit of going about quality have more have mean, John, you

merchandise. this tell would we show, past successful quality you, than much very, of the Brad, successful had And they in Vegas very think just ASD comfortable and were our week feel in with more I I I very our a very, merchants anticipated. Las

the us is on closeout world the flow the very The quality phenomenal. So, of deal is positive. for merchandise

sell. In that's we're terms with fears we're to would no clear tell great of anything, markdown risk or have shape. anything carrying to not regards we - what in going I to

have the and merchants the properly. looks and and right looks bought fresh pretty is the think good priced product I store in everything

shape in we're merch good the markdown think I front on So and front. real margin

now from about one about a way is what holiday, not of And be holiday giving confidence selling how how guidance, quick out know season? I long you're squeeze what's seeing can if trend fair to might and it's there I a more that this you to in real but give anything a on to terms any right think explicit you able all you're and standpoint not

deal followers, don't anything we're I the spinner like think I But on I but or think we're a that. I going out hands part That's today. think we're really is business a that, quarter. of in No, toy can tell that would not there's - the on we're get there - obviously, you, trend trend positioned big front. we not our fourth that to see the setters, our Toy well anything

think be seasonal our holiday I better ever. will than

making gift are think there I today. where giving positioned the our strides made we in I much think we've front, changes was And year relevant great the well. this product well for consumer more as overall

a good head - front, to are virus the period, good from people I is from real up should But barring got we to perspective, perspective, we we're my successful and like from think shape. in to So and impact things have any how merchandise so our starting people that. is pretty rear starting COVID its holiday unforeseen a just reacting, watch again,

Keith from Peter Piper comes Our with next Sandler. question

your may You proceed question. with

- your the the I said Eric, guys new - COO, Thanks on think you call. script I is have questions everyone. I regardless... guess I guess

Yes, I'm here.

Okay.

implement. usually to the pretty initiatives you you've period So, at you three make changes can Company or months, I assess it's can been guess time good

be I'd of Ollie's to Eric, positive a guess, coming as you curious make on an opportunity So, set eyes see in fresh on anything some change? with I

Sure. a I trying question, months. impressed been great at Yes, making And it's said, it super reflection I you people has experience while spirit. how here, able the with coming it's to Ollie's in appreciate really grow to three pace. smart a little very to the so And hero are its the entrepreneurial at as the just Peter. strong the I've enjoyed I here onboarding to the talented product store was thanks mission. but committed some to and me absolute Ollie's calling was blend continues out. been fast Company. this who a just for into of know committed been with I've pain meeting experience I retain even over

So, that's this team certainly times. through unprecedented and resilient impressive been been super has an incredibly

macro of to what of I we're able I'm both labor and process supply the proud challenge the and - the we've part very, discipline this expense been in a seeing because move huge is improvements improvement such team. productivity, answer supply a been improvement my in. wage the life, very focused to focusing similar team very labor and the very that challenging continuous and environment and to in into I've on certainly fast labor - that is is rates, a with chain macro related as very came since I'm experience your here. had be question, prior And In started, story. To this So, environment that

We having some team more in make more it, be a very to here to supply to ways to capacity change be do hiring it chain. have fast team makes without process to if a people improvements able that sense, throughput move as get and more in We'll in Peter. productivity great various

Yes.

examples, that guess, even understand us provide some specific maybe guess, it would I help So, better. I can if you

was first now Yes, two one most numerous delivery the I'll first week, were which single when stores you biggest examples. improvement ones. We're consolidated I getting made stores, Sure. making probably week. of getting deliveries most are I three our deliveries a started a a even give improvements, probably We've stores after where or couple larger the some to - we've

significant in reduction it's a productivity transportation a throughput So, and in enhancement expense.

investments equipment, Another enhance is process. And probably is our productivity. of some Georgia changes we're significance management we're making to system, warehouse last its to some some material highlight handling automate the in modifications to in our specifically making facility

Fargo. Wells question next with Our Edward from comes Kelly

your proceed question. may You with

guys, the to Hi good you I afternoon. Yes. about line. sales wanted ask

below I low. least way because looks the productivity this store right think because the XX% new looked sales Street, XXXX, quarter which at Your were to model up was anyway the in and it

about curious QX think stack like some the thoughts on throughput what that how are in that where geometric kind of Is your that. be do QX? of And to I we is Just is? going then, does similar. stuff you're it look as to in mean,

So, do will just as kind curious QX there. of I'm on going or in better the remain? XX% be challenges those to what's

was model are mean This a we're side. is From expectations. how Yes. model that consensus Jay. in you new our issue store it on up. estimate guys And productivity the line not maybe I really I right built with sure saw standpoint, our think we that we too, -

year little right, to the to QX. stores stores productive mean, this of are that our just last comps case running very like our mean said, And that in that during Our were bit But the I new was year. because carry the we of marketplace. was expectations. a ahead XX the obviously pair actually a I of that stimulus new opened certainly trying

a from our because to - plan it, call swing the on where than be, kind the to low normally store of XXs range would was we or productivity, probably XX% of it very 'XX it's new normally So mean big base XX% 'XX, in different XX%. model our I

sure guys we're the account in you model. So, that took that into not

of the We're open, of continue coming our we get could that and to have in is stores in impact timing little in half, the other going a back number opening of have we back the had in weeks the experiencing bit especially in The been stores a are, going to in quarter, shift half. those but delays openings. out that's

normalized guys to was the take model levels. productivity, really it, So I was disconnect, and for a it new maybe you - the driver store it back didn't think however down QX

or thing takeaway on think, inventory the one you're or absolutely on one to sure I with Ed, the make deficiency do is the for you big sales to any clear big throughput nothing had performed high very new well. and The quality very And was Jay new the a stores they performed plan. said, bit like our in stores stores. even inventory little very ahead of probably The strong.

at did those negative performance stores new the the those So of impact did had have - on guys. zero inventory -

Our comes Citi. Lejuez with Paul next question from

question. proceed You may with your

our for is Bran for Thanks taking question. This Paul. Cheatham

mentioned of on. working with disappointed think stores were handful I a or were you there you that

what we geographically vintage on do like about and if dig any is to in, that, wondering similar there can you to unique additional a able color Just be remedy might or anything they, that?

Yes. I wouldn't say disappointed at all.

we at handful think point little in lighter we'd them that I in to a like what I was of see had time. were a this inventory stores than said

strong. of - all performance are the stores the would I very So,

read don't that anyone to I wrong So the way. want

handful. that opportunities a inventory little them stores make said, have the se a get - it's We in per XX% some it's, at. - to boxes but a little see where more I the bit it's to It's not better, those look we like

So, those perform else inventory stores overall to the predominantly a little are more like good bit down located into of but part them, very south. fine. a And adding them I'd those performing a real everything in is little better that's see company, in just our by small are stores shape.

any change has some on your you Okay. any incremental have there And the markets adjusted since information have benefits? wages, rolled where additional Just that? off been then on unemployment states

those hire there, made on big but that up, We have yet in for the to the that's It early Yes. They right has coming definitely made done states have easier saw still off sure. a states some larger September. the did not in The hire. a rolled lot - here unemployment that that have a in states corner, easier people challenge of to change hiring - with that. that's

Rick Our with Stephens. from next comes question Nelson

You may your with question. proceed

your about event? last Question in went May? Army do how Ollie's summer was for And multiple the days. know the What for thinking year? this I event, that year thoughts you

go used which the of mailer, on to had proceed to changed for out Ollie's we in time buzzer night that we're to the year one-night landscape to December. had print. we - the going event talk with Army call is to on how I'll We the Night regards that inclination final year - one Yes, go event the today we're holiday to mailer. to going decision Sunday But mailer, only Rick, knowing a last to issues make my and that back to still have with - COVID week-long about the be because this we a not when holiday

So, everything, to we're we that's today. have - make what to going till planning decision. watching we're and we're October this But

a hopefully So But Sunday. it our get to for on the best even to we'll our a for customers. to once information, I decision tend more back one-day we make and leaning have stores go

that. Everything for which just Our fine. great May worked event, we was had,

pleased So, with that we're for camp mailer there. were we boot very results excited it and the the about

what Also longer going you that that. they imports, represent the term? And over the percent for where a of Thanks about see the as curious sales?

good probably mean is Yes. And generally, some Rick, this XX% compared Jay. is our about big that importer for we a to I the of us especially it's other are news annual purchases. XX% for not us, retailers. to

are those working in and delivered. seasonal Now it's get the hard that It's supply product, goods we Eric percentage. team have peaks the at. but in a bottlenecks not through chain and where to related some to the and - that's And valleys huge work can get

Thanks. Great.

Ideally, primary needed don't as my where that we increase Yes. number. to we would augment our from focus, but I And perspective, we say, Closeouts have continue are grow. will to plans. Rick, we want don't

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

You may your with proceed question.

bit, you So, it minus unit XX May. before, that? been thinking in to the like XX, both XX, but a then add of a is lower change that on then to a going you want high growth have you maybe up terms I of there then, should sounds And and in had bit could returning year. story? the part And talked around Is little maybe back focus long-term Ollie's moving on to your return in margins supply about to into about any in color unit openings, on unit forward, the at that XX that chain thinking algorithm, part of like the growth units in a fewer thinking level. four little to and you little that bit some terms a sounds than for normalized or three, you're shorter were terms growth why line than level, performance, total units thinking labor, costs in little the of color be although that a what a to most about

to year, easiest, due XX overall the first forward. the permit to With XX construction strictly the the to and delays plan necessary, to Sure. and fully one delays. really intact this regards has XX is Jeremy, the become that's fact our XX, the is going

be in time. We have delivered leases, XX can't they just signed

So, We're roll those earth-shattering going it. there's year. nothing next with into to

we XX, say expectation but will year than next to I be north is for and next what year. do less won't my of would venture So, we XX south of XX

the the are the - the tough construction go, signed, all with So the availability. times Well, getting delay to as we permits get pulled in could with out away. product wish site well ready leases there is construction is

So, we are we feel where landing though. good

Understood.

to markets? be to follow-up in percentage a XX versus quick to of ahead would looking would in new year that, infill to what next of you expect - As you terms XX, those markets

the we're My XX XX. leases guess is, working have were today we right that about in our on XXXX states of now, for

all we're one still hard Other might markets. looking that into. we're next be to to backfill our into. don't to to go some think than those going markets state call markets have of we'll very are So obviously, we - our And, Missouri, work existing on I new continue new that Kansas, I - new we fill year Texas,

So, XX% new markets, probably you, backfill. I XX% would tell

Capital next comes with Anthony from Loop question Our Chukumba Markets.

proceed may You with your question.

versus thanks afternoon, Good two-year you little was guess, you can if taking of And I had you wondering for why categories, bit then comparison just you. commentary you very talked your year. a XX% performing basis? difficult points a traffic you Obviously, on ticket? were relative where your that's I in terms last and a basis. up sales on better anything had any Thank XXX PP&E from say said, the basis any they down, were about And stack my headwind like comps and just about question.

categories, and in I'll a was better luggage department going candy performing XX% tough comp. performance against category, - Anthony, the obviously in there, that was it clothing. seasonal up small terms our we that the light better out But probably shining very take versus Yes, the was terms our quarter, of have of categorically our

in broad economic last bear across we I think And year strength Yes. the all stimulus had this with mind, departments.

this regards So, match performed basket, you quarter still But for that comp looking - - average can't XX.X% to the traffic even at the ago. don't down are that in of And for counters, decrease decrease basket. transactions. the driven the in XX% a from of a really And average very that from was negative our came comp XX%, versus we XX% in it's we're so transactions of some year measure departments average by the And from the of side about well. transaction yes, a average we have and that was retail. basket

Our next McNamara Brian question Markets. Capital comes Berenberg with from

your proceed question. with may You

taking for the question. Thanks

on is I retail kind color more could realization. pretty appear give coming acquiring from? that was price you're you're if record bit excess exactly a of across you inventories wondering supply where So, lean

I to having our vendors. you excess from coming not that We're is tell any Yes, venture any issues our all Brian, supply category. of in would

deal - based. broad very a It's over it's So, vendors. we XXX with

not product. we're would that that can't pinpoint you getting specific I I category So, tell any

our a our full. that need doing getting relationships, product, sales. they buys meet categorically of their but merchants our They're we're our plus So, getting relationships existing new great to job products and open our to they're all buying to are the

of of we're in shortfall we're good there So, and are marketplace we're in the where flowing not lot product feeling the market. a that seeing closeouts sitting. There out is any

executive if generally closeout same the retail, comps that agree see time, And I'm that that you increase a out? into we in this terms this And know, one-time merchandise an it of as follow-up as seems year, benefits. flow negative could then plays of in assessment? And next of the you Thanks. the in curious with Ollie's supply two, see of full chain to I are kind another general, that year like of as country, stated ease, really one, retail basically could at would morning if, pressures negative. benefit that, is supply kind guess would comps these

not necessarily retail, would I comp would Brian, - wouldn't year at negative for Ollie's next I that for a least. be Yes. agree

disruption is as from it us plays product going to benefit the think the marketplace I in a perspective. out flow

So, abundance with year think roll I product be lot this feeling next may be an may moving there orders, out could the that pain closeout in, challenges a of people canceled of year.

in So you into that doubt benefit, I hand as any plays without a my potentially tell our not would detriment this a mind.

questions over now for any any remarks. at further like Swygert showing time. not back I the I'm call And to further this you. John turn Thank to would

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

call. Thank participating. you. This concludes for today's you conference Thank

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