Financial Analysis

(5) Commitments and Contingencies Contingencies From time to time, the Company may be involved in claims and legal actions that arise in the ordinary course of its business. The Company cannot predict the outcome of any claim or legal action to which it is a party. However, the Company does not believe that an unfavorable decision of any of the current claims or legal actions against it, individually or in the aggregate, will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources. IEEPA Tariff Refunds In February 2026, the U.S. Supreme Court issued a ruling that certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were invalid, and in March 2026, the U.S. Court of International Trade ruled that the U.S. Customs and Border Protection (CBP) must refund duties imposed under IEEPA. In April 2026, the CBP launched a platform for submitting IEEPA tariff refund claims. As of May 2, 2026, the Company had not recognized the effect of any potential tariff refunds, as the timing and amount of any potential refunds for previously collected tariffs remains uncertain and may be subject to further legal and regulatory developments. The Company will continue to monitor these developments and their potential impact on its financial position, results of operations, and cash flows. …

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(7) Debt Obligations and Financing Arrangements Long-term debt consists of finance leases. The Companys credit facility (the Credit Facility) provides for a five-year $100.0 million revolving credit facility, which includes a $45.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans (the Revolving Credit Facility). In addition, the Company may at any time add term loan facilities or additional revolving commitments up to $150.0 million pursuant to terms and conditions set out in the Credit Facility. On January 9, 2024, the Company refinanced its credit facility (the Credit Facility), pursuant to which the maturity date for any loans under the revolving credit facility was extended for a period of five years from the effective date of January 9, 2024 and a zero percent (0.0%) interest rate floor was added to the option for the SOFR Loan Rate (as defined in the Amendment). Loans under the Revolving Credit Facility mature on January 9, 2029. On January 24, 2023, the Company amended its Credit Facility to replace the LIBOR-based interest rates included therein with SOFR-based interest rates and to modify the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks. The interest rates for the Credit Facility are calculated as follows: for ABR Loans, the highest of the Prime Rate, the Federal Funds Effective Rate plus 0.50% and Term SOFR with …

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(9) Equity Incentive Plans In connection with its initial public offering, the Company adopted the 2015 equity incentive plan (the 2015 Plan) pursuant to which the Companys Board of Directors may grant stock options, restricted shares or other awards to employees, directors, and consultants. The 2015 Plan allowed for the issuance of up to 5,250,000 shares. Awards were made pursuant to agreements and are subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. After adoption of the 2025 Plan as described below, no additional equity grants were made under the 2015 Plan, although equity grants made under the 2015 Plan will continue to be governed by the 2015 Plan. As of June 12, 2025, upon stockholder approval of the same at the Companys annual meeting, the Company adopted a new 2025 Equity Incentive Plan (the 2025 Plan). Pursuant to the 2025 Plan, the Companys Board of Directors may grant stock options, restricted shares, restricted stock units, or other awards to officers, directors, key employees, and professional service providers, pursuant to agreements and subject to vesting and other restrictions as determined by the Board of Directors. As of May 2, 2026, there were 4,650,088 shares available for grant under the 2025 Plan. Stock Options The exercise price for stock options is determined at the fair value of the underlying s …

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(8) Income Taxes The effective income tax rates for the thirteen weeks ended May 2, 2026 and May 3, 2025 were 24.3% and 22.0%, respectively. The change in the effective income tax rate was driven by the impact of discrete items recognized, primarily excess tax benefits related to stock-based compensation and the expiration of the Work Opportunity Tax Credit. On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act resulting in significant changes to the federal tax code, most notably the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions. The Company has evaluated and incorporated the effects of the legislation in its income tax provision. The Company is subject to tax in the United States. The Company files a consolidated U.S. income tax return for federal income tax purposes. The Company is no longer subject to income tax examinations by U.S. federal, or state and local tax authorities for tax years prior to 2022. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues arise as a result of a tax audit and are resolved in a manner not consistent with managements expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. …

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(4) Leases The Company generally leases its stores, offices, and distribution facilities under operating leases that expire at various dates through the year 2043. These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals based on a percentage of annual sales. A majority of the Companys leases also require a payment for all or a portion of common-area maintenance, insurance, real estate taxes, water and sewer costs, and repairs, on a fixed or variable payment basis. Many of the Companys lease agreements provide options to extend the lease term beyond the initial non-cancelable period. Most of the leases contain options to renew for three to five successive five-year periods. At lease commencement, the Company generally includes only the initial term in the lease liability and right-of-use asset, as it has determined that renewal options are not reasonably certain to be exercised. Renewal decisions are generally at the Companys sole discretion. Upon renewal of an expiring lease, the Company reassesses the terms and includes in the lease term any extension periods that are reasonably certain to be exercised. For leases acquired through bankruptcy proceedings, the Company typically includes option periods in the lease term, as the economic penalty associated with the acquisition cost makes renewal reasonably certain. The Companys lease agreements generally do not contain any material residual value guaran …

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(f) Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03 Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03) which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06 IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modernizes the capitalization criteria for internal-use software by eliminating references to project stages and clarifying the threshold applied to begin capitalizing costs. This guidance is effective for fiscal years beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements. In December 2025, the …

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(2) Net Sales Revenue Recognition Ollies recognizes retail sales in its stores when merchandise is sold and the customer takes possession of merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollies Army loyalty program, revenue from Ollies co-branded credit card, and gift card breakage. Net sales are presented net of returns and sales tax. The Company provides an allowance for estimated retail merchandise returns based on prior experience. Ollies Army Revenue The Company operates a customer loyalty program called Ollies Army. Revenue is deferred for the Ollies Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollies Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards issued upon the achievement of specified point levels are subject to expiration. Unless temporarily extended, the maximum redemption period is 45 days. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool …

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(11) Segment Reporting and Entity-Wide Information For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment and one reportable segment. The Companys chief operating decision maker (the CODM) is the Chief Executive Officer. The CODM regularly reviews operations and financial performance at a consolidated level, for purposes of assessing performance and allocating resources. The CODM uses net income to allocate resources for the single segment to make decisions regarding annual budget, new store openings, landlord and vendor negotiations, marketing decisions, pursuing new business ventures, and driving the Companys values. The CODM reviews asset information on a consolidated basis. The following table summarizes the percentage of net sales by each product group for each period presented: Thirteen weeks ended May 2, 2026 May 3, 2025 (in thousands) Consumables $ 226,947 34.4 % $ 188,910 32.8 % Home 187,493 28.5 % 172,672 29.9 % Seasonal 118,004 17.9 % 102,483 17.8 % Other 126,484 19.2 % 112,702 19.5 % Total $ 658,928 100.0 % $ 576,767 100.0 % Our single segment net sales, net income, and significant expenses are as follows for the thirteen weeks ended May 2, 2026 and May 3, 2025: May 2, 2026 May 3, 2025 Net sales $ 658,928 $ 576,767 Cost of sales 382,964 339,736 Selling, general, and administrative expenses other 128,084 112,522 Occupancy 38,349 33,430 Advertising expenses (1) …

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(10) Common Stock Common Stock The Companys capital structure consists of a single class of common stock with one vote per share. The Company has authorized 500,000,000 shares at $0.001 par value per share. Additionally, the Company has authorized 50,000,000 shares of preferred stock at $0.001 par value per share; to date, however, no preferred shares have been issued. Treasury stock, which consists of the Companys common stock, is accounted for using the cost method. Share Repurchase Program In December 2020, the Companys Board of Directors authorized common stock repurchases under a share repurchase program. The authorized amount of the program, which has been increased from time to time, is authorized for up to $700.0 million of shares of the Companys stock as of May 2, 2026. The share repurchase program is effective through March 31, 2029. The shares to be repurchased may be purchased from time to time in open market conditions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issuer self-tender offers, or any combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of the Companys shares, general market, economic and business conditions, and other corporate considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which coul …

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