Ollie's Bargain Outlet (OLLI) 10 Dec 242025 Q3 Earnings call transcript

Good morning, and welcome to Ollie's Bargain Outlet conference call to discuss the financial results for the third quarter of fiscal year 2024. [Operator Instructions] Please be advised this call is being recorded and the reproduction of this call in whole or in part is not permitted without expressed written authorization of Ollie's.

Joining us on the call today from Ollie's management are John Swygert, Chief Executive Officer; Eric van der Valk [Audio Gap] Certain comments made today may constitute forward-looking statements are made pursuant to the certain comments made today may constitute forward-looking statements and are made pursuant 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. These risks and uncertainties are described in our annual reports on Form 10-K and quarterly reports on Form 10-Q on file with the SEC and in the earnings press release.

closely I'll Reconciliation the measures company over are turn do today's to measures not included statements. On call, the today call, of most update made financial press earnings Mr. GAAP referring in today's financial we be and undertake call non-GAAP the financial our the release. With comparable measures are of statements as date to non-GAAP of that to the these to Forward-looking said, certain also will any obligation Swygert, go please ahead.

a and good call and strengthen our margin such number on you, supplies, are opportunities great In morning, enhance Thank earnings of you everyone. candy. pipeline gross and the we estate with real joining today. demand quarter disciplined We our consumables expense our as results. strong pleased another competitive strong saw store sales, for advantage appreciate positioning We the that control. our of everyday delivered quarter, We Even had cleaning took for future. and higher new also important, and more food we

timing and late living. quarter. believe the the third We of consumables, in seasonal before, Thanksgiving we such had along goods have also of and product more our Outside demand. saw sales flow we're assortment for strong a relationships of with demand outdoor merchandise. manufacturers of with discussed selection these to categories the categories, and we As as consistent warm for certain impacted everyday the strong discretionary of furniture strong in a major great is We related leading growing October, our weather of ready consumables,

Black we with we trends approached As categories. our weekend current our and accelerating the saw the our sales We business. in in were momentum weather the Thanksgiving seasonal and holiday, pleased Friday normalized

value want bigger consumers partners. ever, need and suppliers than more Now

we amazing We from have X finding good stuff and assortment an job deals. and exciting We cheap than our sell the XX for closeout buyers doing business are benefiting of trends, of more been great in are these a years.

brand same name XX% that been at want the growth order value brands, prices continues bigger to order higher their Our we're channel levels for The about value have XX% products, and be quantities growth sizes to to has fancy product. excess larger everyday suppliers the careful the proposition continuous placement stores. Anyone very need and bargains. from cheap and of real products about real driving branded inventory of retailers people the of This large below larger a all are quality industry. our day X closeout product led is time, suppliers in Big proposition lives production can sell competitive excess and but selling our typically are At moat. conflict. sizes, and cycle and

have position financial buying the buyer XXX strong and and experience closeouts. With advantages important scale, of size, we we are in stores over Our excess when largest increasingly are inventory. XX closeouts states,

we I to role will the CEO progressing will Transition CEO planned. as XXXX. beginning Chairman and Executive is become built our of investments While not increased the comes we to be have we other these altogether. At prouder are relationships and or and getting part leading strength time away shrinking the is This flow. positioning nimble the CEO Rob and same going last Both has forward. been in of a us as what making I to the to my integral made at have led years over an of the execution the responsibilities move close, results. Eric more more organization. have the are a of players stronger of deal closeout business as made and consistent have going larger, vendor and several investments. And time, could role Eric fiscal better This

and for been many retailer stay It's will this the things, earnings who my of and I that came their to from call. individuals heart. challenges. to closeout hope was CEO. with years, selling things true that proud and true during continue a part made amazing Mark thank and special passionate been by kept an by each model. in of built timing saving their customers planned member is have mission every cheap. unpredictable But was Butler would the that has and The a stuff my tenure ups Everything Mort, public work team family. Operating simple XX-plus Given like money Co-Founder, and good faint I Ollie's be we fortunate honor our company to model nature have and of is downs that operational I not creates to founded of many Mark him we the to for I for staying our as stand years. and legacy of last

about While excited more forward. proud competitive we've of going what growth I our am accomplished, potential positioning and

Our value clear. proposition is

to remain like turn it's ability We good is been. now value. With is results as on to execute consistent Our growth, enhancing flow delivering focused call deal Eric. over said, to and as ever and would I our profitable the shareholder strong, that

Thanks, John, and good morning, everyone.

better with We we quarter to more performance. third process The have improvement made stores consistent supply marketing in execution. to result people, investments continue our are and and chain in our pleased

headwinds. this. in some temporary example was line of delivered earnings quarter were a third with that expectations The despite We great

that We our real estate a store bolstered number competitive also sites opportunistically of pipeline positioning. acquired new and

first a operational test of of assuming possession dead stores quickly We these after Stores so and these the out reducing store May opening burden forward first. Cents pipeline of In the sites. August, stores was opened in the of we to opportunities in our rent acquired organic and opening Only The these minimizing shifted these soft new prioritize as XX several Texas. bankruptcy of the

months followed our might with active an and not stores. stores. up have stores than that prior, later We these quick faster with the official performance be just were few right grad discount and happier new we ramp these Given stores event been of expect out the with could a gate. they top-performing of open ramp typical and Several shoppers opening

acquired second an the have real Lots these the Friday. The structures in store right opportunity leasing to we are stores additional and closing X date, serving Cents on XX have many locations To attractive the have bidder been and located stores were estate Similar last is rents Big winning size, trade and the good value-oriented XX Only Stores, areas, customers stores. years. for

of acquired year. We expect opening quarter will opened the have to next that prioritize of end first the by the these the stores

be new With pipeline and strong a as stores, is XXXX these additional our our in openings very will front-loaded result. store store

meets XX goal. plan [indiscernible] which new next Our growth is our year for XX% minimum initial a of stores

disruption. In for acquisition. could share in increased flow, accelerated there to liquidations. come and XXXX the new competition additional to it schedule To support record offset the growth, opportunities stores will is pipeline store evaluate store continue in This opportunities market short as term, we will new new a estate up and We real product lead going any on for of openings with horizon. chain. and be opening supply for our potential retailers Bankruptcies the continue against invest closures talent our opportunities market the is by longer-term year to and unfold.

than for stores in Our center an facility help a that area increase asset. new Illinois began of more has and XXX us technology enhancements scale and acquired that and July contains over stores. and of potential distribution servicing newly number opened Princeton, The shipping the is The stores productivity better leverage capable time. is Midwest help Ollie's growth this productivity us significant will newly will in

of service capacity place, new provides strike the now DC in to nonevent A the growth. supply With we port up several other have a in years chain-related which was total, for really few us. the XXX stores to for comments, runway

buying allows to closely us changes and tariffs to our for products. the flexible pivot monitor between We model in pricing adjust continue potential to different marketplace increased the our

our from a approximately account flow any direct As year. given of imports reminder, in product for China XX%

members has safe part clear and our I'm an turn that over for to the and and in entire Rob, would to like what our culture. that to amazing and thankful I honored an commitment. call I'm would thank communities. Ollie's I a areas. I doing their hard also Milton be the hurricane-impacted were purpose local Hurricane can they recognize like team for Helena devastating the of and to organization work continued team associates their Before are

things We to industry. proud are want and to an save the impressive I Ollie's customers' they good the need. thank would retail sell also like on XX-year which money results delivered stuff his in cheap and leadership nearly unparalleled career, for John

an John to me, and mentorship and of are our place next took you. Rob? which placed moments [ He's growth. especially I he leadership of unexpected before pandemic the lead the started. in shephard Park Buttler appreciative incredibly have of the passing for John's strong provided business and the culture. allies through the Thank model the phase We board trust into ] only been the appreciate

Thanks, Eric, and everyone. morning, good

are third increase a We in pleased XXX margin gross and EPS increase an quarter sales, very with results. point expense We X% disciplined our in in basis adjusted increase by driven XX% a control. delivered

our the headwinds XX delivered temperatures. into we out earnings a we Big unseasonably Despite included were of unchanged. X liquidations, Lots was X warm and line In for quarter, the outlook largely the with fourth which sales. shift of We that the closures fourth the number faced expectations, a and also These headwinds, quarter opened for quarter in our and hurricanes, impacted new store quarter, us. number the major short-term the and in stores flyer that still quarter, record these is a third third of

X% was we're our down and you X.X%, the store growth membership X% of with transactions performing growth. take were members stores an Consistent and increase total staples with XX% categories Army over members ended food, me XX let both driven Ollie's XXX Demand quarter and sales. million candy, strong XX.X everyday and our states, X% sales to younger prior for housewares retention demographic slightly. sales customers. We by represented Now the million, of in third store increased basket customer numbers. Net throughout the trends, quarter to consumer furniture. with quarter, increased in seeing $XXX and sales income through year-over-year. new of higher to best declined our Comparable

were As the store X not was a we store mentioned, we temporary X Helene XX Of X X to and opened to and leases due chose of from new closures, renew. record Hurricane that flooded stores. closed stores that was closure a a

$XX of as staples. SG&A We start. from a forward off new margin Gross lower percentage offset solid are pleased higher to to increased with to by margin XX.X%, increased to stores, partially to comparable XX% in fixed supply to due merchandise margin points XX basis adjusted earnings basis mix in points million, driven associated $XX to store XXX increased Stores, of consumer operating by costs, expenses X.X% deleverage which XX.X% XX% Only quarter. and lower expenses income performance to basis points sales. increased share increased $X.XX. XX are income per XX net the Adjusted Operating decrease chain the including the of with our a of the Cents the million primarily sales increased net

$XX margin to increased and million adjusted the to for adjusted Lastly, XX% EBITDA quarter. basis XX.X% XXX points EBITDA increased

the only to Not of driven industry. a of gives increased million strategic new and arises. on We the short-term no opportunity the enhance receives. Inventories with our a related balance and to balance sheet. Being and with hand allocation. existing new capital for closeout $XX credibility quarter, facility. Capital timing on stores the Turning in totaled about it common investments line remodeling just unit stores. with of third growth outstanding in were us sheet with bringing primarily asset and the deals, of is bought flexibility company our pursue share development $XXX and to a make and million $XXX million, quarter quarter our repurchases primarily the does allows $XX borrowings million strong the as us it revolving by to the $XX year-to-date to our the million, back We credit larger it stock XX% public to cash expenditures vendors targeted in any our between ended the

Turning to our outlook.

XXXX release. is today's the fiscal press for in earnings guidance contained updated Our table in

the and X.X% a fourth respectively. are the unplanned for The our outlook of $X.XX the largely comparable sales as weeks feel we ranges now year. store unchanged, Christmas the $X.XX net our fiscal and The closure narrowing to positioning heading store and Our sales into for to and good of quarter is and ranges third slight the about holiday of X%, results, new the result openings. quarter one of billion timing store billion remaining

share. for new to adjusted associated adjusted unchanged acquired earnings renting year. for the store stores opening outlook ranges margin schedule Preopening higher the Our gross as and due per net of outlook expenses front-end are is loaded next income XX% recently slightly with expenses and our is now

X For renew chose X new and still closure store flood total closures XX the in a that we targeting of store. the lease of the Carolina openings, impact less we're temporary the to not North

stores open year. XX are targeting a XX% growth We expect for the in new quarter to fourth minimum unit next of and

Next to second in stores the quarters. opening the heavily year's weighted first store majority will more half of and openings be with the first

our trends As make John a the mid- in Christmas weekend weeks, with and current this. a seen that selling business late the support the in to to holiday discussed, could we pleased over sales. Thanksgiving believe and acceleration several December We and season have nice seem rush Friday shorter our bigger between we're Black for period last

and locked loaded deals with great customers. for our are We

quick this million $X.XX has extra year contributed share. fiscal reminder year earnings to last weeks weeks diluted last Finally, about net The sales just approximately $XX XX that year. per XX week a and versus in

Now let me over turn the John. to call back

Thanks, entire be and passion experience, proud Ollie's makes look commitment for of that from Rob. would future the all they our the I thank do. have truly I what successful. It's everything and we combined to cannot forward team accomplished to everyone success. like

we we are say, As

Ollie's.

Ollie's.

take prepared our happy your we now to remarks, Operator? concludes That are and questions.

Matthew Our from first with question comes Boss JPMorgan.

John, on the congrats transition.

missed. You'll be

forget [indiscernible] I Matt. disappearing. that. Thanks, around, Am don't

always. Always,

just shortened all disruption calendar, elaborate -- could trends consolidation maybe and best some of November that that cadence it kind the business. And how So on and seen you you headwinds could in of if faced best quarter in the together? can, algorithm maybe just the above in parsing speak on can, you you November transitory maybe you've the comps then XQ through in put your you comps despite you XQ, of confidence the to fourth

better that was XX the Remember, in out holiday, seen, into comp that the an was from have up Rob. because over as considering it into October the It shift trends quarter. that low softest call perspective holiday, slightly, the negative month Friday it, positive shift plan we're continue algo we our good the do ended strengthen. our that a shifted really And I'll the trends where seasonal to September was impact we that Black quarter, are month And we've impacted in pleased the our impact closer of were quarter. to a flow flyer digits. August the single us down, weekend we in of which take really From this than the basis And which it, Christmas the about for and fourth call good. overall then -- hurricanes, that's August was categories. Coming getting were which it's with thought was quarter, was point fourth down warm in on lastly, August from by weather the was Matt, one. started shifted we quarterly comps the the -- for and And quarter. flyer to October. to our month. our flipped slightly shift was of out We which

gives us sits extra ahead about that basis of of that XXX today. comp. So us flyer still is points an And

opportunity, multiyear, relative from on you growth a just plus follow-up, you And growth white unit the expands, vendor puts to space and And Great. to as just for Eric, related... could fleet are elaborate XX% you consider the maybe, as next takes just then seeing what year. unit see the

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Matthew. ahead So go your with question,

Great. Okay.

So unit closeout you growth Eric, vendor seeing elaborate white cited size consider the unit you on could you governors for that space growth opportunities? with just opportunity relative year? next and what are to the to scale, growth And greater multi-year? XX% relationships Any with and minimum the

Matt. Sure,

'XX there at out moment. we've opportunities real really certainly look a and we beyond, and this are an of in and there in 'XX 'XX, opportunistic but As looked lot into basis, estate

self-imposed In as all with this this governor Big we've real at of talk whether and estate. of the we're if really into to as either the are operational moving other it's addition 'XX. The too of Lots, are much kind in liquidation support option to the or 'XX that's process through in We're pipeline able an as retailers that XX landlords there today. 'XX on distress out at we're have working process, in or built for an opportunistically, is moment, the place infrastructure we stores, state several beyond in invested in Can't opening XX%. looking to. accelerate many infrastructure governor XX-ish And to direct and beyond the based point, we'll

what sheet in and with get vendors the to environment terms strong insurance and very today, balance availability will that and the consumables his in -- an giving in our working very What that remarks So in and to in 'XX vendor a be world or closeout growth us it's they balance developed sell paid. and any deal terms just to don't seeing us do in access of but we is helpful to we've to that liquidity of larger been product and payment [indiscernible] our that. especially advantage. And beyond seeing ahead want able relationships, we're scale sheet great important opportunities with flow actually guide been remains that accelerate relationships, direct giving I'll attracts that somewhat I strong Rob some everyone way, to more more ability you get take that direction have remind closeouts. form, a are the our of is shape ourselves and in and is differentiator, to size all stated competitive We've

next Our Sandler. Keith of question Piper from Peter comes

been leaving, pleasure John, to working the you. of store with I you Big you're around Lots the on want to did types but has not calls. great into closures. Mike, congratulations dig dynamic it a I know these

QX. it that a happening think headwind be have if I as more be contemplating there. you progresses? a out as as called then a I headwind that do And to well QX. in should quantification lot closures we we wonder any potential there's quarter the Could

question. Thanks, I'll Peter. take is Rob. This that

against third our closures about about had So ended quarter being impacting Big when drag third for take, third another store store closures through the of the points XX those of announced place end very of XXX XXX Since announced XXX the quarter closures, were that of time, only up That call, there announced Lots for our late had a and store us. we or be closures range comp. in will cumulative basis with that XXX in give impact These closures. holiday the taking the total they've commence season. of quarter

our drag, amount call guide. a So we embedded quarter similar basis XX so it of fourth points in

the Very does buying was around that intrigued X now they how potential I so XX any thinking thinking Okay. early the I open XXXX? are could guess you're math up quite strong Only these? acquired stores the I that to that XX. around Cents opening that what's in up stores these store your and related think to inform Lots up then is a got more stores helpful. I Big you've acquisitions, you've guess to And be could hear

sizes. stores think strong It visibility we acquisitions. could ramp great lease quickly. We're great street good the very economics, about that think and these certainly demographic, it. excited We does customer box about It's inform how

excited we're about So these. really

Capital Next from with Brad Thomas KeyBanc question comes Markets.

about? footage best have stores there's are the if this be ask lot these plan amount gate then suffer as know stores can to the and first you they how this financially, growth? on takes a thinking school a as out strong other and don't to the And that new that for just operations but commentary we you accelerating you inventory wanted footage level, about growth of puts you all just as accelerating as get high ensure organization I John, And should square to any at just be and well. how don't to margin of of

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

then in, resource we're invested forward is bigger ahead head store teams, making XXX -- potential a have unit leadership on in XX% areas that supporting I infrastructure the plan We Project ensuring is our the sure able And we've to XX with leadership bit one you well going in we new the about little is my support as the in our which setup growth the place, which network, remarks, that infrastructure now construction management ]. [ accelerate stores. opening at have we've another one a hiring gotten and talked that and in DC the see network as to store anticipating of both invested general.

concern DC We about the throughput well. have on as bandwidth side no

third back to years long-term EPS growth loading our for algo an about we around give working outlook outsized in that opening be the our is don't which on that. call is here. What quarter going earnings the way term, XX% XXXX, you schedule, the XXXX, much it's steeped front color too of we of because From when firmly And typically seen say haven't our there's would several something on think I store potential to for EBITDA. long

comes Haskett. question from Gordon next Chuck with Grom Our

think, double-click can you also that I you the into dig few that? calendar past on come. Rob, why think just flyer just guess, the business said acceleration business coming we to weeks. confirm the the Can over you And weeks? have your you accelerate X still I could in consolidated in you And Can

Yes. It's Eric.

now calendar. The at a still calendar you the we it's in us, when where business ahead the total on today, to the it's meaningful meaningful, a ] of us putting stores is keep It's front lot attract the in great shift flow. deals -- there is in customers from So flyer and is and in though expect meaning flat between shopping the of basis season. [ we're with how approach to days business us holiday. a somewhat that even week fewer we Also, front [indiscernible] of that look there of we on out very there shift condensed in as there the the planned week very, in sit and mind a X Christmas, additional are into some were

to So good where and at. reading business to feel business we the about come we're we're the date and

Okay. Great. on just And then over of Army, Ollie's sales. XX%

talked your You you getting remarks wondering you younger earlier was in bit could It prepared a for with into a your customer. us. more seems I like about dig little if that for guys. big opportunity

Yes. Sure. Army. Ollie's

to continue We attracting customers. younger see strength in

segment consistently for several target growth to segment. quarters, XX- the has Our XX-year-old now been

and bringing be us. encouraging. pretty itself we're more those also very, attractive over a also So very do good going to are And that We've well seems that pay marketing customers. lends product attracting advertising marketing several for retail to other to investments it is that's believe We including digital to made customer in agency specializes that programs then very the that new our digital years now, efforts off. continuing on

Ciccarelli from comes with question Truist. next Our Scot

Scot anything as know of reads kind it's you a closed we thoughtful the of would margin. growth capture earnings question that the of Ciccarelli. whether liquidations, another think orphan sales just what Any And be about about going of Lot whether I that a store early But are your go-forward talked the notable are just stores? from technology, kind sales from the those it's are then negative but DCs, about above investments we Rob, kind Big should you talked perspective impact that headwind from obviously, opportunity, flow-through. to for of. algo the needed to of kind be longer-term 'XX. about create

days relatively post Scot, it's We're take liquidation. that. I'll Rob. early

around for readying ago. closed. only it first some early seen of perspective stores to liquidation next growth. the From pickup The -- an round year. bunch already made We've have the readout is a and year yet. a investment nearby accelerated on glimmers not We've give too for this since it's those month ourselves it's of investments a solid of about But

So there's significant you're see in going significant not any SG&A, no investment -- to in technology. investment

supply form that we continue our accelerated need the the we centers. fifth of make the still distribution couple center grow this faster thing over at to that to in get off point. years sooner with growth We have you'll a what distribution in place. One the is of investments we'll see that which we'll is years chain And

color. To bit add of a little

the have buildings in both have ability to XXX,XXX an building well. of each. to as Texas The expand square Illinois, in X existing our and feet We opportunity stability expand

process that we run fast expand a necessarily from we years standpoint, into And we have X don't building. So map We and road have those fifth could to -- buildings. a thought around in XXXX beyond.

Our question comes Goldman from Kate McShane Sachs. with next

a the to mix impacted margin. freight And long -- couple if sales? overall benefit how wanted increased consumables of mix a just that's ask we you some in We talk the how you should just around gross as the lower the about of of will given margin questions Can quarter, just and how from costs? the strength in

XX I I originally Kate, get guided point when mix question. would that quarter, the margin. Can a a repeat on this to we we the you didn't question? second second in addition say From perspective, Rob. is consumables contemplated had our what the drag

Yes.

can quarters we see a from more many benefit how freight? Just

is last doing true to that's I can constantly would of of say well. of efficient that this benefit and more we freight. make business, what chain supply throughout our ourselves the as quarter significant We're

of muted to last little from couple what they're we've you'll pickup and how fairly operations with be but chain centers, product coming see seen relative distribution terms years. of off flow to in improvement contracting crunch going our the we of a in the and So the supply

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

stores, to you're change how granular alleys? the preopening second if see noted 'XX. a about we thinking that in new on, relative And bringing Only of look read given little you much performing think about expense. to typical understanding I here year. And we your stores how bit how as of more than what about you about previously asking the could had year. early a is are to stores legacy an the million that us by was anticipated, XX start thinking I give Ollie's? of if would should you're the it's kind terms wanted then getting going to Cents 'XX, versus be I just my the performance the you wanted which for I to stores bit ahead can that on Big higher you what typical Lots the legacy quantify, question in Rob, And then be $XX think of also

about $X.XX the Sure. relative From pay a we there's We over acquire big of lease. those soon the as rent lot it, quarter, dead call additional, fourth EPS stores. to as an stores the and preopening perspective, the drag take for

contemplated that's in guidance our for year. So this

year, we're expect. reopening fourth loading But seeing just front about it's For little changes status expense quo you're in really how quarter no kind the aside bit of of next a we'd the from there. that next for in thinking as year, big well

just Yes. a new stores stores little more that we open stores recent call somewhat past. Jeremy, color or were for on them warm

because business have replacing rack of very oftentimes, real in brands take a remember of that estate. some were second-generation even this real for boxes. the they And pipeline some remember retailer our estate been on and do out of we that in has to years kind of we lot or X-plus we're You cold organic is the

was showing ] it And happy it thought different a with stores, from and there event. Lots post stores we were doing not was Cents discount-oriented that still my we're appealing wasn't attractive. it's volume period. We would no marketing We expect [ business similar equivalent I what to Cents very opening remarks customers some that So XX to opening model because the of too believe. grand additional Big of that of all that but of we kind store said customers were XX early somewhat is means, for ] we quantify the with found grand same these our ] were [ was halo the enough customer. And it disappointed in the anymore, found the opening stores in be with customers [ to the response that or almost is and XX up what that discovered that Cents though a

yet, that have haven't cold acquired XX see days, auctions XXX we've the These severe. maybe days. expect to for any will in boxes we something various We but opened been

we So similar expect on something fairly a ramp. would quick

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

out the So in store bigger of in the Just there smaller and words, any relative to differences or urban you Big from they are core differences? more your pointing noticeable stores? Lots in is anything Only are locations any significantly your sort Are that size? other of XX terms they Stores, think of Cents In are worth they terms in like, base?

a Anthony. over Sure, the average Cents runs feet. opened. typically Eric. slightly mid-XXs, square little The the than XX store were stores They smaller and our XX,XXX in average It's we that were

sub-XX,XXX So there ] unusual feet, [ which smaller. but of XX of couple a actually were that them and are is slightly average the majority in very were There again, the were for us. above them mid-XXs.

backrooms. to similar box the total the the ours, larger square Lots gross Big is footage For very of they but have stores,

box So the square it's be terms on making store. ensure I than footage to in some our that But the average our average stores slightly selling selling would we're to in those square of size. some of footage smaller similar expect to more Big to Lots stores adjustments

one it. quick then Got And follow-up. just

that Any too quarter? what So about what of to any have talked fourth this about -- the you quarter terms out comp in hit think and is way maybe the the be third from quarter. benefit will granular, might the that that? another been fourth flyer of the thought but shifted Or comp in into

the we basis XXX less slightly just points, there. was than third about think but that For it quarter,

points the For improvement. basis quarter, expect XXX about of we'd fourth

Nunez comes Bank America. of next Melanie with Our from question

you on just for gross about wanted I the mix talked to a second. know margin I talk of impact. some

Just margin and how about anything XQ quarter. changes to merch in think terms your mix in of this for the

a was consumers little fourth because consumer staples. thought of our guidance quarter that have Our seen bit mix. carries We the responding prudent over that, to we

question, earlier we improvement more much the an is chain in supply mentioned I costs. muted lap as think I

pretty stable. that, pretty from quo. everything Shrink Aside else status is is

we're But higher nothing margin. stable, a pretty planning on at to albeit the So shrink comment else to gross level. really

Gutman question next comes Morgan Simeon from with Stanley. Our

new growth a on of unit up timing of in than out the Inventory growth Zach quarter, call you bit sales and third Simeon. XX% did for And higher is X.X%. the was This receipts.

normal season was can you of holiday forward to seems also business. it the like if of product perhaps tariffs. it's speak But just or there course potential -- any of So the any mostly pull for in front

Nothing significant to call out about inventory growth.

good to We and feel and unit for catch-up growth, of last confident XX% about inventory the years inventory our our have growth. we growth bit little been really couple a playing relative in of

with the locked season. for loaded are We deals and holiday

question next Kelly comes Wells Our Edward with Fargo. from

there. a you career SG&A labor. wanted well, you John, first question, successful can as I -- to ask on Congrats My and about

on made as seeing some just are at workforce, benefit. changes bit inching on as like part-time kind the still is versus little X% forward going of and some Or cost then you in of based changes around beyond, comp? Curious we to And point like You the of comfortable a you're about there, SG&A full-time, that upon think what a sort with leverage around the higher labor?

Ed, take questions. the Sure, I'll

in still are testing full-time early the change. time. to the part mix We of stages the benefits

Just remind to to XX-XX and we're currently XX% moving time part ratios. are everybody,

we're So dozen few testing that stores in change. a

believe structure will We mix execute that testing the better help us change. part-time full-time leadership also change alongside a we are the stores. to

at person We for the So this investments of investment to the the look the more based people make that in better It and better at net neutral. in a X% forward going wage investment ultimately leadership peer-oriented productive stores in covered on business. closer SG&A from neutral. leadership full-time us we've is leverage a We standpoint. The being and we expense as help person to is made a lot execute. point in offsets full-time will look our

Great.

the stores XX Okay. going related And I close. to going no Lots And liquidated don't open. are they've like, It's forward? that ask a because now sort were Big quick know, just longer follow-up to planned question remain going I this the are Lots thoughts on to had Any that of some opportunity. Big stores or so

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could a about increased availability. environment, you talk more the maybe buying seeing if Curious bit you're where

then margin consumables think structure at take about margin gross different, gross larger the pockets not mentioned consumables I you also in we percentage any any a if curious second, how about think do is seeing there targets, sales, just think to as all? availability? as anything about as you are but think longer term, there where the if up great you're of category, of And or

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showing at to any this time. I'd to further questions like I'm Eric. back not call the over turn

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

Thank gentlemen, and this ladies you, conclude today's presentation. does

wonderful have and a You day. may now disconnect,