So, you know how everyone loves a bargain? Well, Ollie's Bargain Outlet (OLLI) is betting big that you do—and its latest earnings show that bet is paying off. The discount retailer's stock climbed nicely on Thursday after it dropped its fiscal fourth-quarter numbers. It's a story of growth, loyal customers, and a promise to share the wealth with shareholders.

Let's break it down. For the quarter, Ollie's posted adjusted earnings per share of $1.39, which was exactly what Wall Street was expecting. Sales came in at $779.3 million. That's a solid 16.8% increase from the same period last year, though it did just barely miss the analyst consensus estimate of $783.3 million. Close, but no cigar—though investors didn't seem to mind much.

"In the fourth quarter, we delivered better than expected sales and earnings, driven by solid comp growth, healthy margins, and disciplined expense control," said Eric van der Valk, the company's President and CEO. And he's got the numbers to back it up. Comparable store sales—a key metric for retailers—rose 3.6%. People weren't just browsing; they were buying more per trip (that's the "basket" increase) and making more trips overall (the "transactions"). The top-selling categories? Seasonal items, consumables, hardware, stationery, and sporting goods. Basically, the stuff you might need for a project, a party, or just everyday life, all at a discount.

The company's gross margin was a healthy 39.9%, which even beat its own expectations. It did dip by 80 basis points compared to last year, but management says that was a planned move—they're investing in pricing to keep the deals sharp and attract shoppers.

Now, here's where the growth story gets real. Ollie's opened a whopping 86 new stores during the last fiscal year. That's a record for them. They ended the period with 645 stores spread across 34 states. That's a 15.4% increase in their physical footprint. And they're not slowing down: for the current fiscal year (2026), they plan to open another 75 stores. They're also projecting about 2% comparable store sales growth for the year ending in January 2027.

But a store is just a building. The real magic is in the people who walk through the door. Ollie's has a loyalty program called "Ollie's Army," and it's growing fast. Membership jumped 12.1% to hit 17.0 million people. That's a massive base of repeat customers who are presumably getting alerts about the latest pallets of closeout merchandise. This army is a big part of what's driving those comparable sales higher.

Financially, the company is sitting pretty. It ended the quarter with $259.7 million in cash and equivalents. And it's been active in buying back its own stock—$33.6 million worth in the fourth quarter and $73.8 million for the full year.

Which brings us to the future, and perhaps the part that got investors most excited. Ollie's laid out its outlook. For fiscal 2026, it expects adjusted earnings per share between $4.40 and $4.50. The Wall Street estimate was sitting at $4.48, so that's right in the ballpark. Sales are projected to be in the range of $2.985 billion to $3.013 billion, again hovering around the consensus estimate of $3.002 billion.

But the real headline came from the capital return plan. On the earnings call, management made a firm commitment: they plan to return approximately 50% of their free cash flow to shareholders through stock buybacks. They're starting that pledge with a plan to repurchase $100 million worth of stock in 2026.

CFO Robert Helm put it plainly: "We are targeting to return approximately 50% of our free cash flow back to investors through share repurchases going forward." That's a clear signal that as the company grows and generates more cash, it intends to send a good chunk of it back to the people who own the stock.

The market liked what it heard. Ollie's Bargain Outlet shares were up 4.54%, trading at $108.06 at the time of the original report. It seems investors are buying into the idea that a growing army of bargain hunters, a rapidly expanding store count, and a promise of shareholder returns is a pretty good combination.