Ollie's Bargain Outlet (OLLI) 6 Dec 232024 Q3 Earnings call transcript

Good morning, and welcome to Ollie's Bargain Outlet's conference call to discuss financial results for the third quarter, fiscal 2023. [Operator Instructions] Please be advised that this call is being recorded and the reproduction of this call in whole or in part is not permitted without the expressed written authorization of Ollie's.

Joining us today from Ollie's management are John Swygert, President and Chief Executive Officer; Eric van der Valk, Executive Vice President and Chief Operating Officer; and Rob Helm, Senior Vice President and Chief Financial Officer. Certain comments made today may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in our fiscal 2022 Form 10-K dated March 24, 2023, and fiscal 2023 periodic reports on file with the SEC and the earnings press release.

Forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update these statements.

company be the non-GAAP to call, measures. financial today's will referring also certain On most GAAP earnings closely the those turn of Reconciliation comparable to over measures said, will Mr. included the that call non-GAAP financial are in release. With our press I now financial to measures Swygert. ahead, sir. go Please

Thank in quarter joining pleased and call you, with everyone. our We today. the you good appreciate morning, trends business. are had and positive We our another strong

expectations, came execution XX.X% Our strong increased driven the third our and EBITDA ahead chain by continued sales margins to flow, and in quarter, and adjusted quarter throughout increased supply lower increased sales million, X%, net deal of to sales XX.X% million. $XXX organization. In comparable costs, store the $XX

a and trends, XX raising the the store the record and healthy new strength in stores results year. earnings saw business guidance we quarter in third very and opened the Based quarter productivity new current of are We period. on sales full a also our for our

third consecutive being positive housewares, growth, our product numerous and XX% comp positive our In see top to our the of sixth goods, strength categories. broad-based of quarter represents we continue sales quarter, and categories store candy, over comparable sporting with performers The quarter food, across toys.

competing such are shelf very which they more are and creating Consumers new changing to creating -- sizes, strong. remain Our packaging products, need ways closeout want summer Manufacturers for space, on furniture homes. and and air flow is save and retail money all are opportunities. performance. The for categories branded and in is merchandise room looking summer innovative also their seasonal and strong and under as deal contributed to closeout our looking we pressure,

for this environment. We are built

prices, For over been below traditional drastically has retailers. Ollie's brand-name are reduced selling XX to at XX% which XX% products years,

and and can real use find on products our Customers real source need a vendor both they bargains every lives customers are day. We and brands trusted partners. in with their know they

With know we stores becoming for growing, Our across vendors. size a categories closeouts. access our are over XXX one-stop of and inventory in competitive number is better growing seeing vendors shop deals and to advantage, scale are a we and a real managing excess and

pipeline and execution Our our couple last years our success. remains strong. Deals we in business, chain, the drive our spent marketing. deal investing very execution pandemic drives disrupted ways, supply many centers, our and stores, The in distribution people, have and of

in We throughout some and the to productivity better are will driving is speak of business, a this these across executing organization. moment. Eric gains the

with the to Army be X% bright of Ollie's our XX% and another for quarter. sales spot continues year-over-year in membership accounting up almost over

our this and busiest our the Our giving and customers to December exciting XX. and Night saying is best Army thank Sunday, of you of year, loyal Ollie's most something them most special. night is way This

Our loaded welcome ready are our bargainauts. stores are with to teams our great and deals, loyal

with in If fun Ollie's are you our If savings. To in wrap continued pleased third we up, and member, there. enlist an our it to special share results hope and to the there's you not, still see business. the are quarter and we momentum time Army

executing controlling are and our stores, cost. great the opening chain, deals, new We managing our board, supply across buying

XX% growth growth. and remain double-digit We our deliver targets continue gross the long-term growing are and and well-positioned scaling to double-digit EBITDA against margin, of to business our ability confident growth, with sales

to store to operating me call Eric discuss growth pass over let the and initiatives. Now our

and morning, everyone. Thanks, John, good

our improvements hard commitment made the better are execution. Our of have strength and and our and the quarter and chain our in results to efforts talented we driving execution work productivity team of incredibly across our the supply Process this stores and deals, improve reflect people, investments organization.

opened we strategy is long-term third of quarter, important is record openings our in a most pillar Ollie's. quarter This The a growth. the for XX of stores. store number In

surpassed also are ending the another expanded and in milestone quarter state, excited with into we the XX XXX-store to states. report We XXX stores

already quarter, us puts at in planned additional quarter. York. Long our to store fourth in including We stores X have Island, fiscal New another the first stores open stores later XX opened this with X This new year this

Turning to remodels.

through Our the we format. X store stores the customers an an quarter, quarters. updated XX shopping better deals bringing XX in and showcases amazing us deserve completed during easy-to-navigate experience the that We to offer organized stores first

on are year. track this complete to XX approximately We remodels

Moving marketing. to

for to to look continue our efforts. marketing We innovative ways expand enhance and

we flyer, most showcases the with deals. which pleased performance our are our of compelling better We believe streamlined

we third the During the shifted into and as of the quarter, quarter one fourth flyer planned. out

to through lifestyle expert and continue influencer, survey executed Week, awareness National impressions. tour build XXX marketing. We reach forms as Bargain and a media brand included our other Hunting which Suss. as around with over of campaign our campaign broaden a generated million We This a well Limor

to our of customers This on our program over build existing customers helps XX growth helping fuel of with as media -- with top success have younger demographic, mind growth, attract social keeps and to include program expanded is fastest-growing especially continuing the and Ollie's our message marketing customer savings segment. are We our of which the well. keep is influencers. The new

XX% sales improvement The year-over-year representing and to Ollie's Our customer a growth Army our collective in quarter. Army the led file from marketing over of increased sales. efforts X.X% this nice

compelling that customers are Army. younger are We the our encouraged programs attracting deals to to enhanced and marketing see

Army a implemented active Ollie's We Discount military. members all duty are Appreciation Day who or veterans for Military also

Turning to supply chain.

provide of of support our an additional our in was service seeing in of as we track give growth immediate long-term the and and expansion us fiscal These we efficiency. target continue our stores operating capacity combined distribution on between support center XXXX. are more. to XXX in This stores ability Pennsylvania completed expand the to August, service into benefits our distribution We us X,XXX XXX to Illinois and throughput Midwest. The to to and investments center XXX and to stores the or will in XXX network open expand in fourth distribution our are

to Before every committed I would are of turn our the a successful proud super excellent to associates in the am Robert, company. the business. take day and of to thank Rob? moment continue amazing each demonstrate to of teamwork to obsessed and who call our the growth over I value we I like execution our

Eric, Thanks, everyone. morning, good and

very pleased and line. are which We in bottom of results, came sales better-than-expected the comp expectations. third We through with our delivered to quarter our flow ahead

to the our X% With sales increase net we in of a momentum million, driven by growth. quarter the year. In continued sales for full store XX.X% store raising and quarter, and comparable new the our the business, strength guidance are and third earnings third sales in unit $XXX increased

XX% of driven Our comp and sales to of XX% the growth as store over was in Army our sales by product positive quarter. John comped categories represented increased X.X% million Ollie's indicated, Army transactions. over total the And to members, primarily XX.X sales.

new year-over-year quarter, XXX of we opened stores X.X%. with the During stores, states, an XX ending increase in XX

flow. SG&A mix. store offset compared XXX existing for compensation XX the was XX.X% net to a store very basis expenses ahead the incentive across quarter, sales of margin perform after the this increase basis expenses our continue costs, the impact new year, was markets. Gross slightly by both improved by new sales, percentage by in to in as comparable XX.X% and leverage driven costs higher leveraged favorable primarily stores points strong fixed and out-performance account year-over-year. supply into our expectations primarily to merchandise points deal the to quarter, of by on was even Gross driven of driven new last and margin above shrink Our taking strong in productivity higher chain our expectations of

$XX XX.X% to quarter. net per $XX increased $XX to share million, margin to increased XXX increased XX.X% $X.XX to and million, XX.X% EBITDA EBITDA adjusted XX.X% and increased last income XXX operating points points margin year. and Operating adjusted for basis in X.X% was income compared million, Adjusted basis to the $X.XX the Adjusted quarter. increased earnings to

balance the to Turning sheet.

Our million, and our by these primarily growth, borrowings on hand Inventories inventory investments, freight by between no offset costs. capitalized increased store driven facility. lower increased short-term X%. items, credit Adjusting $XXX our new X% benefit million and cash cash strong of remained $XXX to the outstanding position under revolving partially with for

Capital completion expenditures primarily remodeling Pennsylvania, company's for were the construction and of quarter of the The in in distribution in million new the of stores, existing of new stores. our and development the center totaled distribution York, $XX center expansion Illinois.

$XX shares At approved quarter, extending During $XX common March the quarter, stock on which we of remaining bought our Board the of million for back the we repurchase current authorization, of XXX,XXX had the total XXXX. a end share to million.

needs. committed to opportunities while repurchases investors and our are returning share capital balancing growth strategic our capital to through working We

and results full Turning year. for to and our the fiscal our both on current we're in outlook strong quarter our raising business, for sales Based trends the earnings XXXX. third outlook

start take to quarter, and confident against are and more to to quarter fourth We come customers. do we in entering to the to great well-positioned to Ollie's comparisons are expectations. We are of Night, of believe deliver the lot in continue business with deals our in up fourth ability difficult approach including setting that execute. With still momentum us, ahead business our a we'll Army a measured we our

gross XX X.X% which full opening net margin the in to expect $XXX less to to comparable store range to a million. billion XX.X% now of X we XXrd year, $X.XXX billion, stores For new income the includes XX.X%, million closure, of the $XXX growth of sales of $X.XXX week, total of sales operating X.X%,

capital to share our rate $XXX center income tax net approximately diluted our the distribution related to net million of $XXX per XX compensation, expansion million income weighted $X.XX Adjusted XX.X%, which of approximately tax of outstanding shares $XXX to million, annual of construction the stock-based and Pennsylvania expenditures excludes adjusted $X.XX, of distribution including for an effective center. of $XX of the diluted and benefits and million, fourth million average

quarter Lastly, comments on few provide a let our fourth expectations. me

takes our third. raising account flyer into expectation sales into This the shift QX from quarter X%. to fourth X the of are comp the We approximately

in X We fourth the expect to quarter. new open stores

January, open is fall X into Although store there that early is that in scheduled could currently February. to late

Now, call John. to turn the over let back me

Thanks, Rob.

extra the of past dedication. day. members, all them who the and XX special. that years, and commitment I'm passion The do entire over I hard the members team are grateful team experience, our our and team It work and thank places ever. and than XX,XXX Over team season to on each for all demands Ollie's their team you makes that grown holiday for harder our working combined every is has

As are happy we Ollie's. That to Operator? and now take our concludes prepared are your say, questions. we remarks, we

of [Operator Instructions] from will coming Capital KeyBanc Markets. Thomas first be question Brad Our

my nice for Well, well you're is a quarter same-store really about XXXX. deserved. here. question sales around on Congratulations yes, how John absolutely, -- thinking

comp. X% quarters, to You've the long X% algorithm these that sort think if back, last had they we I X of really go But mean, a of I out. stand

to You ago. the about you pandemic you back decade period, year? point these sales thinking period, some How tough prove had you same-store comparisons next mean I take-up next are this about will had be year. at the if for go a

that's Yes, a Brad, great question.

have years. we we basis. XXXX. This life outsized, the obviously, here had is year think, X% definitely in we year at public bar really comp the a our lot I It's a of this than but annual spent to lot since better X% X setting prior executed in a time on

pretty annual confident to where X% we'll a is X% be. I'm for So XXXX, that guide

you hopefully, getting next around margin, And you margin great. XX% as look to about as year. then feeling year? about that out you've margins, next talked a back That's are gross follow-up How to gross

don't Rob. nice is a to Obviously, our this them a get tailwind for other margin. for to ability to back direction. are We head We're anticipate gross in us chain back supply the in Brad, now. confident costs XX%

So we be feel like is. where it that will

that think not with stabilized. worse. I the full XX% certainly gross that flat, any on I achieve slightly But we getting better being could year. a has margin. shrink It's It's think

from And of will our coming Sandler. Keith question Piper be next Peter

that doing quarter XXXX X% and Curious Nice now you just compares. the set to and things can follow if of continued To sort for about comp foundation for me thinking these that the expectations question, X%. be compare on Brad's first to growth against as drive well. to there's

marketplace. the Peter, Yes, available closeout a retailer we in we're and buy what's

So each to doubt, organization we're The without doing better an thing over that are try and a present deals be to can going quarter-by-quarter forward. The for a I we as challenging And every year. that's always and do to continuing I themselves. what set business the the better able can and now, think focus to sometimes, everybody we able to deals day drive annually, on do execute ourselves merchants be believe be little to remind is think do biggest working the success going and year up to will we're comping to we consistently. but be

going year. So fiscal that's this on current out what we'll be focused

Okay. pretty And I good know every year environment. is buying a

it's I know like have pretty stores seem what drive does good And margin. you right try a it a assortment consistent For to merch now. brand to name of your worth, really merchandise always

So have give just planning has right some the guys consumers perhaps bit I'm something margin, widened little that merch gap or better hold wondering key if actually Is your to that better value. deal pricing, and opportunistic a you can you a are more of for if environment, now? you pricing competitors a the you

be pretty we'll very feel far good to next confident we'll We're We're #X us to the able QX. we're items. we presented the to have in not be to what better, But go But XX%, time, we're say there do to now, the Peter. better. give what's we then, that But tell motivate try We and a the the obviously do at year. to right yet. to with QX, the out and going from to get on -- don't to we best would if to we're we visibility consumer But especially to to that discretionary did job same see focus them, value going XX%, is not planning can there. get to to and going you our back try

from Goldman of Sachs. coming Kate question McShane our And will be next

if you trended quarter, quarter, the discussed cadence certain well maybe categories that some comps the could QX? saw the see through where wondered you weakness that into and throughout And performed did the I of how know We within walk you you that has categories? during but

cadence, parts result categories. strong. of strength and a to the saw hand bit September as call. the the last equally and a a that for cadence much but third the change QX that was August flyer had of quarter. beginning into about we're the the was little then October And From pretty we take off we spilled talked over as it from I'll I'll then, perspective, John softer, that on planned the

surprising market. we called categories strong to thing were obviously, be the the categories The Kate, the Yes, out underperformers say we on overall that would call. would not a

or all Our and those I furniture, going quarter seeing, were discretionary tell nature. With seasonally what underperformers of that's are in in driven longer domestics, you would underperforming we're the into Most clothing. X categories. no in nature QX, X categories the

turnarounds going some seen the domestics definitely clothing we've and So QX. in into arena

Biggest something Furniture category the furniture in high not something last most intentionally. is couple for in we it. that still a others, reduce we're effort concerted we the years. But a and of have There's furniture really mattresses, demand the to deemphasized in. that's is really made category

Edward from will our Kelly Fargo. question of next come And Wells

a flyer you didn't believe XX% early to addition in was there the in I question that on coupon for shifted. I run off just A cadence promotional have you QX, that

curious that than X% overall you we had And impact that bigger the shifts the in. if think as I'm flyer about then, was about. hit talked QX, So

So upon about? do still And XXX you based considerations points thinking you promotional then sort be what about should that's of or like that basis any think we other what couponing saw?

Ed, question. it's I'll Eric. the take

were digital the out primarily shifting dates. reverse into in print met QX print our It expectations order, driven maybe the shift, and think QX. ad I by of

expecting points shift said, QX. XXX into to we're be, you So that approximately as basis

coupon to an and promotional including other high-low number not it's not not mentioned coupon run nature. promotions, look a In although terms time, promotions a We We we factors, promotions, science. in timing exact of at in time We're do you've in from of from retailer. promotions or calendar to run falls, variances general, whether the time where of time, we're as holidays.

in or example, decisions kind meaningful inventory to this of For the needs moment season, factors. in Saturday those extra sometimes content us, we front and make there's in weekend tactical, business or stand, of on based where all we in an of promote season Christmas holiday

this any at this run promotions have point. year plans We to additional no

it. Got

Okay. And I'm -- go sorry. ahead,

No, sorry. go ahead,

I you up. this you I pertains as response, to how of Okay. the And does have in curious consumer terms sort And comp like for the demand, out especially it product post-Thanksgiving just guess us? point? if so laid guides you've current at that trends general, talk maybe What far lined up with holiday line got could that then are you of in about was seeing offering

Yes, Ed, there's between a there's -- XX. obviously December and lot of today do to still business

days our this of biggest One year the Sunday. is coming of

today. feel Trends at. to good with we we're in we where where you tell are want sitting be we'd So line

excited consumer So from response very perspective. the with what we've we're seen

There's in with are believe are the our that the them. there definitely we're to I the a responding winning little consumer to uncertainty values but marketplace demand, our the and customers out and values providing

as longer a dealing period there's So we're shopping well. that with

So we've to got it see offerings of where and are lands go. lot we'll We end out the feel our season. where strong, positioned, we're good a for the

Can in incentive QX? quantify for on in the quarter? you be I what's then more just the going And that on one Could to SG&A? squeeze comp drag

Incentive to Sure. basis Rob. This was a headwind the XX fourth is of about points quarter. comp

So gotten the pleased leverage pretty we got with of XX this we in the XX basis of with you leverage would points financials, factor were that which showed if have the basis -- with. we X-comp, quarter in points we

that XX And consideration basis included point For our fourth then in headwind. the guidance. about quarter, it's we've a

of from come will Jason question next Our Bank of Haas America.

on capitalize this folks could that some searching past the to to in improvements the value. over business of about you environment or if for year talk you've better are the curious made order I'm so where

of there. on could and if in of working projects you've terms been chain you talk about supply store's operations just I'm some curious the So like

continuing in work been in stores and foundation. We've in Jason. we process on systems supply consistently in as in as chain lighter well some the and executing ways, strong we're -- that ensure we various have in to that execute, investing investments Sure, ensure productivity a can to in with improvement change people

earlier, also break. and hit the fewer need move little an a complexity for made advertising spoke it through the out and aware We product quite driving change I date our we're you're to it's about working to ads. And traffic, now bit reducing pipeline items ad a in as it's we where well, ads of a specific amount to that's

well. We continue material about invest to DCs to the transportation. improvement equipment our a well. So that's semi-automation last years we've been X productivity, do nice established very then, in improve as lot as And over talked a and handling market that's

I We've market structural we international and we for So on made contract the approach how dwell especially some to freight. in won't transportation. changes, transportation how

go the into of detail, year side, from opportunities store have move to the that we'll kind next way productivity, and the of that a was invest to floor, breakthrough a the we big in which to of at chaos to product become in continue the the for lot we continue So the in year. as next truck but into focus attention a enhance on do world. We transportation moving international of peak more we'll in into us it's efficient, particular, been pretty move and

curious in -- so, don't recognize changes if And new Great performing I you then, some also, how higher-cost or to to these you potentially Long you out be those far that thinking not, color. if you're upside? going open starting recently stores guess, that are in stores how in a opened you if And it's if higher-cost can locations? target there are that Long if if X,XXX-store a long-term follow-up, about then helpful. know in I Island, store locations? I are Really that And one, but mentioned as Island

I'll that, love is We a Island Long off they New we Sure. so store, start. Island, love us. Southern it's take and great Jason. opened where loves Ollie's, York Long the to

about I contemplated target. our long have stores the market X,XXX-store term, we think question some So in high-cost

contemplated already that's So there.

income customer we as of need doesn't trade down we don't income whether work, like necessarily Ollie's. We've but meaningful. or that's look a a So at driver economics higher not of seen in a household to customers blindly the kind

a of as love as encouraging, So on when Long discretionary you discretionary customers like high. over Island, look love, Long cost very as a and the a factor love, household income living retail is especially that's And $XXX,XXX income well result. lower then, There's a at Island also discount place in becomes maybe income.

So we that as consider well.

strategic that think, just it. model but for I store and our change our opportunity we worked there took it. one from Jason, growth takeaway There's was a not an definitely there philosophy, that to

continue no going to stores been opportunistic, strategically, be forward. we'll the change on to So we're going there's but how open

Yes.

good I point. think John a makes

Our real in estate is nature. opportunistic strategy

at to We of make cost we or opportunities up, to it we around store. lot So them, all And attributes the we -- store a adds and Whether have open sense. qualitative them. stores we the that consider. consider high look rule, if open

Our Gordon Eric Haskett. question Cohen come next of will from

Great quarter, guys.

the comp earlier back can next call an for your commented You to year. in that company get algo

bigger gets scales? you to way you since company grow of bigger the the approve do the as curious accept momentum, to guys have you a lot and you deals as deals larger, and the your deals bigger, continue have business Just change and

a are and and a deal hard right put the have any the closeouts, fast there's it into this size for look long and no to everything. it's do works just and profile, size the the customer our where not closeouts Eric, of deal. and our region. And say specific no afraid of hard the we're deal. time, margin rule buy to fast X not and been right merchants We If our we a we've for value it's it doing on small rule for at set

from trading is improved execution a this than comped XX% of quarter in guys? you change positive. flow any of down? Great. better terms and positive. reflection And spending another is Or have you categories more just proposition, said XX% This consumer this deal Is comp have of guys value typically, in is this where

of probably say would above. it's the I all

strong. strong. and today customer flow we've deal has trade had a have there's in The The so more a it There's responding. offerings definitely been been the stores down, value been for think than been. our been has has I need

So I offerings resonating just the think are with that's our consumer.

question Capital Craig-Hallum come of from Group. will next Jeremy Our Hamblin

And results. on I'll congratulations my add strong the

obviously of new terms capital and next In DC. for the have plans you investment year,

wanted indicated 'XX. think And like for It kind remodels a wanted openings to new also XX that I year. of get -- unit number a sense well. XX just I confirm get for going and the they're one you're just for on then to you type sense. XX Should sounds to remodels, a which your track of similar like sound expect XX on next XXXX? we

Jeremy, will of perspective, an of Eric a sales algo our Rob. question, capital plan X% of a From perspective, X.X% capital is typically, would that multipart take from plan. a planning as couple couple. and for this we pieces take to I'll

I giving probably units, Eric. next without For that number. fourth remodels million say off it say year, the the carrying for $XX distribution would From would to carryover. of hand new store would we that the increase year, -- center and I'll next completion with just guidance in the of do for year I of have the next range

same new the rest at less how and Again, next remodel forward. point. From not going we effectiveness, a store are to approximately into our approximately. many. influencing of the With about this expecting stores year, capital making tying relatively we're Rob's tweaking the designs the about is total It's investment as our stores chain to Thanks, said, best enrolling these as capital, light Jeremy, remodel the number more Rob. -- cap that giving from $XXX,XXX. into new improvements maximizing store design of $XXX,XXX the they're between well program, that guidance a to we're standpoint, and it's and point, the

particularly spend, it a quick add our percentage doesn't of as capital cost, low So number paybacks. overall relatively material up to

then also I switching of you had color developing to on that. some and wanted fastest-growing noted elaborate that social clarify your -- continue plans to it. on influencers. younger see segment. some on Got marketing those you And media use of think in your more just terms efforts customers marketing age And I talking and interesting wanted how the just if you potentially you're if your that's could to that could are what expand to range and the plans were you expand Army. of to company's see gears about I

spent of channels. kind nothing I as we've on X about Sure, ago, as digital years a close retrospective you almost in Jeremy. marketing, several get. It's guess to can

later, several X/X our marketing of Now, years overall spend. it's over

mostly very ago, and well digital, over So strategic accelerated, of in years marketing influencers. it's nano, in to Tom authenticity large a channels, several team that last think influencers. We really working years. A with XX have that is a our over is we're Facebook. Kuypers, social very, with knew we percentage the meaningful. program, influencer expert In critical and Google We're with several We media channels, propelled really really micro Meta as who hired Insta, relationship investments digital investment now the he's with YouTube. on now The TikTok.

us us people for that about talk to look incentive we give about So and talking are them more. already then

digital continue see to effective. to and results most channel So like look it's customers. growth of to And younger does your point, in available every it test what's producing we

In terms younger customer. of XX-year-old to the seeing the as it, under well so customer, defining to in XX age of XX-year-old XX- customer, the as we're strength XX call the

positive have of large exactly very see and over there. indexing are customers slightly a up, below are are percentage which We we XX down cohorts in momentum XX, that

JPMorgan. Boss Matthew will question from come next Our of

on nice quarter. And congrats a

maybe with to about a margin annual that for bottom going term X% business? do larger think to X% maybe to at So, trajectory returning same-store John, business line the Or longer the what historical comp you how picture, sales, right best operating X% think the X% forward? is growth to algorithm

Yes.

will definitely look the it call income Matt, comp X% if you be compressed think, X% operating algo, I per from all-time high I'll our, our, the to XXXX long-term at se.

It's We close be now probably closer so income. We loss SG&A I think point the that to basis XXX used now, are permanent SG&A overall ratio. we in nature. in -- probably to have world about increased in mid-XXs operating probably to used to a costs XX.X%

I So that basis. long-term probably that carryforward see say would you on a

not we bps than here there, little but and As a make more significant go, much -- we a XX basis. that on

future. So of I still the should be we XX every and the for growth points, able think line year to growth the be with that top to maintain foreseeable double-digit able EBITDA margin

Great. about then, And And in margin. opportunity marketplace there's XX% you fourth of think ceiling? a think a consider? and potentially to there puts higher? then a the today, margin as the gross terms maybe, your bit in that gross do the just Or Rob, multiyear any follow-up values on we the Any press quarter spread takes just to is in

I'll John part hand gross margin perspective, to a the of QX I'll QX to outlook of terms the first on off From take the second for question margin. in gross expand part question, longer-term from on of then year. last the we'd it the expect

chain We what probably this in are in we supply expecting the costs, quarter. benefits range of saw

we'd -- than into performance margin is expect cadence the margin terms Night a third little the quarter lower how the of indexes the fourth quarter. promotional a as So fourth But because quarter of and the quarter. always type strong Army gross gross in margin a in gross reminder, bit similar the Ollie's

the key back SG&A We're the XX. with that long-term operating are take do costs incremental Matt, the we've about once paramount, view on focused into always But this fixed in perspective. focus consumer do do value that to overall the we in regards is I and to to continue we have value we on going an at overall giving consideration from Yes. there to line point margin, understand have is time. the and to

that, revisit customer the it. to have to continue with very we customer. give I But If bit careful I the the look margin, get sure to got loyalty. opportunity relevant be the number got little to will because we at we the the But to one, make value more and So stay that I to we on need with will. keep a

will next of come Truist. Our question Ciccarelli Scot from

earlier I have the of questions. of a Ciccarelli. Scot one derivative

Can you as update that offers XXX-store used receive I that You us mark. would is talk to especially where turning hit of on you the guys about XX% about vendors. the think, you from down, today,

say I Yes. today. you deal strong. Scot, very flow probably very, would it's about is turn XX% The very I would down. tell we would think similar

being selective Our buying vendor the community. what from merchants are in very they're

seeing increase the changed. in not So from We're big that's flow a community.

not we're at to all. get pipeline product So the into struggling

All right.

et verticals, better it's the we from help you're about the seeing, John, talked there deal flow it coming alternatively, it. areas in still might you certain cetera? to where And, community, categories, other subsets or see Can same accepting from? coming kind you into the So expect any about And is is guys us obviously, 'XX? vendor understand flow. Meaning, and it also where strong deal proportion. also roll are -- Got whether CPG you you of as

some XXXX, slowdown see Well, was were that in we Scot, candy. this I would flow. I amount category talked offerings I Almost carry, Candy year, to you would it's -- we've significant every deal Yes. that you, very of last tell very we very in strong. broad-based. can the starting tell and seen been at that flipped least, of year very, a I

-- overall electric, deals in I at clothing, seeing lawn auto. look been the deal garden, if we've So flow, and HBA, housewares, great

and board. over any all doors I And very them, there, tell that's the manufacturers to in There's out -- been working shortfall you are that not manufacturers broad-based either we're are major just wholesalers go there, there, from any direct it's are major well. really that continuing the out the CPGs category to would we're out business. of knock on with but a there's missing the So it's

from will Our question Carden Mark UBS. of next come

in demographics? now like traditional you're ticket this repeat see items? then, how to? in trips to How demographic consistent some for your And sales with what than more income. a sounds impacting are with to household it $XXX,XXX comparing Or continuing of greater are category these they strength are customers from your standpoint? you're more used higher buying Are they shoppers So mix

take It's I'll the Mark, Sure, question. Eric.

of in or mentioned, particular household you household We're seeing $XXX,XXX over incomes seeing are income. strength greater. a actually $XXX,XXX as We strength, in

from well, the And question. which basket the Ollie's frequency know of these seeing an greater is the Army. to makeup ticket I are or customers of overall don't basket We great size increased as size to see. consistent

have to going study. we're something that's So to

the to about asking don't our customer You're AUR answer that. have for base, I average, that

to on any seeing Okay. look That's still then ahead there are what on we helpful. as there? pressure And just And the you XXXX? front, potential thoughts labor incremental

we hard stable we're it's this than moment, -- in We more to in terms forecast, of but year ago were a overall turnover.

do improving. felt ask it years. last of us than -- with We I'll but overall, We're couple the continue as still have are churn not some people as that it, some the less days. XX investments. wage add the 'XX. color to into pressure, challenges But is So it will with maybe I'll feels on much Rob like that we expecting call of some for pressure

say our perspective, over years. come from I a store way we've mid-single-digit year would population. long investment This the was wage a across couple last increase of a And wage

next think of terms in we operating guidance range. inching and what potentially referenced, towards increase we but lower-single-digit outlook, would but not giving year, mid-single-digit at time, digit in next For year. consider back John year, mid-single the terms for of a the this for margin, next Obviously, we're

next Lejuez from Citi. Our come question Paul will at

lot for outlook. particularly down This understand is is you could you Paul. your holiday step Brandon And on time comp, for go. changed kind XQ. I little to was spend wondering comp fourth what left have break time for a a then out the I X% we on of Cheatham quarter decent just of a from

did you any Just retailers And trying of what other see like called you changes how in some that to in is mid-October be consumer out? much seeing conservative, might quarter-to-date? behavior gauge

the let the guidance. longer speak QX our quarter. financial From a here We continue in we margin based take better no shut to guidance, annual do for we guide to and terms sales doing if we're outlook, the can. and going the quarterly range our strength of with tightened on comp QX this of have -- so we'll information, we're us, X% But a off, not perspective, that around We I'll a year. gross give to expectations. we stick updated we and saying a there's to to -- look going October. and suspended the fourth the We setting that earlier registers John speak guidance the I'll going QX to performance. to considers in We're measured demand approach guiding which to

in with spoke Brandon, was to Yes, regards may the with expectations. consumer much about demand others some October, line pretty in October our be and

to on As October from we it out shipped you may recall, November. ad

was a guidance bit but us us the means to a really than that to us we street to we're to at. in lot slowdown next quarter business following there's should a for actually time, where raise to mean that see and our the of in alarming us of end -- QX. And -- we're So we're where to in But expected, lands. doing is lot we're been little the month, today better that for a and a lot days, here excited a -- we'll at nothing we're of go XX expected -- from everything obviously, for you've for long

that. appreciate I it. Got

a It Just than sounds have like chain the initially you on supply third benefit costs been bigger may in quarter. that expected.

then levels", be Is to whether continue, case? gauge that that kind these potential a And or you they a is back a wondering, that like of into the trends of there like "normal that? year? however benefit XXXX expected would just is So potential next

our pretty is line expectations. in much Supply was This with chain Rob.

that out the costs. We the capitalization a accounting model have for in works some the quarter the going terms of good the visibility of of way

investment front terms there the it's great freight in still supply rates, pre-pandemic the composition levels. minor. do wouldn't cost, to algo favorability terms domestic and further is from in next given we're kind where that's wage any trend, incremental it of We have plan of chain levels. We ocean they're In pre-pandemic. improvement versus for the would on getting below of relatively of ocean pre-pandemic but transportation But an we on years. some the -- over we would months expect freight

now for back like turn to would remarks. to conference closing John the I

next for a forward We like holiday would progress I and interest their earnings and time continued season. great our call, to you in on updating everyone our to on have look everyone thank Ollie's.

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

disconnect. now may You