Ollie's Bargain Outlet (OLLI) 10-Q 2 Jun 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 29, 2017	Jun. 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Ollie's Bargain Outlet Holdings, Inc.
Entity Central Index Key	1,639,300
Current Fiscal Year End Date	--02-03
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		61,130,404
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 29, 2017

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Condensed Consolidated Statements of Income (Unaudited) [Abstract]
Net sales	$ 227,602	$ 193,719
Cost of sales	134,667	114,704
Gross profit	92,935	79,015
Selling, general and administrative expenses	61,731	54,809
Depreciation and amortization expenses	2,272	1,978
Pre-opening expenses	1,598	1,249
Operating income	27,334	20,979
Interest expense, net	1,334	1,664
Loss on extinguishment of debt	397	0
Income before income taxes	25,603	19,315
Income tax expense	6,637	7,567
Net income	$ 18,966	$ 11,748
Earnings per common share:
Basic (in dollars per share)	$ 0.31	$ 0.20
Diluted (in dollars per share)	$ 0.29	$ 0.19
Weighted average common shares outstanding:
Basic (in shares)	60,880	59,669
Diluted (in shares)	64,389	61,867

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Current assets:
Cash and cash equivalents	$ 33,720	$ 98,683	$ 37,129
Inventories	246,630	210,107	206,413
Accounts receivable	330	301	262
Prepaid expenses and other assets	3,312	3,739	6,153
Total current assets	283,992	312,830	249,957
Property and equipment, net of accumulated depreciation of $41,144, $30,680 and $38,393, respectively	47,061	46,333	41,203
Goodwill	444,850	444,850	444,850
Trade name and other intangible assets, net of accumulated amortization of $1,574, $1,354 and $1,636, respectively	232,890	232,977	233,259
Other assets	2,338	2,385	2,497
Total assets	1,011,131	1,039,375	971,766
Current liabilities:
Current portion of long-term debt	6,340	5,077	5,018
Accounts payable	62,935	50,448	58,387
Income taxes payable	11,919	4,548	3,251
Accrued expenses	39,939	44,748	33,895
Total current liabilities	121,133	104,821	100,551
Revolving credit facility	0	0	0
Long-term debt	121,905	188,923	192,268
Deferred income taxes	88,360	89,224	86,603
Other long-term liabilities	5,259	5,146	4,498
Total liabilities	336,657	388,114	383,920
Stockholders' equity:
Preferred stock - 50,000 shares authorized at $0.001 par value; no shares issued	0	0	0
Common stock - 500,000 shares authorized at $0.001 par value; 61,130, 60,011, and 60,756 shares issued, respectively	61	61	60
Additional paid-in capital	570,108	565,861	550,463
Retained earnings	104,391	85,425	37,409
Treasury - common stock, at cost; 9 shares	(86)	(86)	(86)
Total stockholders' equity	674,474	651,261	587,846
Total liabilities and stockholders' equity	$ 1,011,131	$ 1,039,375	$ 971,766

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Assets
Property and equipment, accumulated depreciation	$ 41,144	$ 38,393	$ 30,680
Trade name and other intangible assets, accumulated amortization	$ 1,574	$ 1,636	$ 1,354
Stockholders' equity:
Preferred stock, shares authorized (in shares)	50,000	50,000	50,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued (in shares)	0	0	0
Common stock, shares authorized (in shares)	500,000	500,000	500,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common stock, shares issued (in shares)	61,130	60,756	60,011
Treasury - common stock (in shares)	9	9	9

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Jan. 30, 2016	$ 59	$ (86)	$ 536,315	$ 25,661	$ 561,949
Beginning balance (in shares) at Jan. 30, 2016	58,807	(9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	$ 0	1,545	0	1,545
Proceeds from stock options exercised	$ 1	$ 0	7,824	0	7,825
Proceeds from stock options exercised (in shares)	1,204	0
Excess tax benefit related to exercises of stock options	$ 0	$ 0	4,779	0	4,779
Net income	0	0	0	11,748	11,748
Ending balance at Apr. 30, 2016	$ 60	$ (86)	550,463	37,409	587,846
Ending balance (in shares) at Apr. 30, 2016	60,011	(9)
Beginning balance at Jan. 28, 2017	$ 61	$ (86)	565,861	85,425	651,261
Beginning balance (in shares) at Jan. 28, 2017	60,756	(9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	$ 0	1,911	0	1,911
Proceeds from stock options exercised	$ 0	$ 0	2,555	0	2,555
Proceeds from stock options exercised (in shares)	355	0
Vesting of restricted stock	$ 0	$ 0	0	0	0
Vesting of restricted stock (in shares)	26	0
Common shares withheld for taxes	$ 0	$ 0	(219)	0	(219)
Common shares withheld for taxes (in shares)	(7)	0
Net income	$ 0	$ 0	0	18,966	18,966
Ending balance at Apr. 29, 2017	$ 61	$ (86)	$ 570,108	$ 104,391	$ 674,474
Ending balance (in shares) at Apr. 29, 2017	61,130	(9)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Cash flows from operating activities:
Net income	$ 18,966	$ 11,748
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	2,775	2,411
Amortization of debt issuance costs	180	187
Amortization of original issue discount	5	6
Loss on extinguishment of debt	397	0
Gain (Loss) on disposal of assets	(8)	0
Amortization expense	87	95
Deferred income tax benefit	(864)	(568)
Deferred rent expense	183	172
Stock-based compensation expense	1,911	1,545
Excess tax benefit related to exercise of stock options	0	(4,779)
Changes in operating assets and liabilities:
Inventories	(36,523)	(15,805)
Accounts receivable	(29)	(79)
Prepaid expenses and other assets	370	(3,478)
Accounts payable	11,746	6,811
Income taxes payable	7,371	3,928
Accrued expenses and other liabilities	(4,648)	(1,853)
Net cash provided by operating activities	1,919	341
Cash flows from investing activities:
Purchases of property and equipment	(2,953)	(4,821)
Proceeds from sale of property and equipment	8	0
Net cash used in investing activities	(2,945)	(4,821)
Cash flows from financing activities:
Borrowings on revolving credit facility	236,389	202,000
Repayments on revolving credit facility	(236,389)	(202,000)
Repayments on term loan and capital leases	(66,273)	(1,254)
Proceeds from stock option exercises	2,555	7,825
Common shares withheld for taxes	(219)	0
Excess tax benefit related to exercise of stock options	0	4,779
Net cash provided by (used in) financing activities	(63,937)	11,350
Net increase (decrease) in cash and cash equivalents	(64,963)	6,870
Cash and cash equivalents at the beginning of the period	98,683	30,259
Cash and cash equivalents at the end of the period	33,720	37,129
Cash paid during the period for:
Interest	1,152	1,469
Income taxes	130	4,247
Non-cash investing activities:
Accrued purchases of property and equipment	$ 1,518	$ 902

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 29, 2017
Organization and Summary of Significant Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	(1) Organization and Summary of Significant Accounting Policies (a) Description of Business Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referenced to as “the Company” or “Ollie’s”), principally buys overproduced, overstocked, and closeout merchandise from manufacturers, wholesalers, and other retailers. In addition, the Company augments its name-brand closeout deals with directly sourced private label products featuring names exclusive to Ollie’s, in order to provide consistently value-priced goods in select key merchandise categories. Since the first store opened in 1982, the Company has grown to 239 Ollie’s Bargain Outlet retail locations as of April 29, 2017. Ollie’s Bargain Outlet retail locations are located in 20 states (Alabama, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, and West Virginia) as of April 29, 2017. Secondary Offering On February 18, 2016, the Company completed a secondary offering of 7,873,063 shares of common stock, of which 1,152,500 shares were sold by certain directors, officers and employees upon the exercise of stock options in connection with the offering. In addition, on February 19, 2016, the underwriters exercised their option to purchase an additional 1,180,959 shares of the Company’s common stock from certain selling stockholders. As a result 9,054,022 shares of common stock were sold by certain selling stockholders at a price of $19.75 per share in this secondary offering. The Company did not sell any shares in or receive any proceeds from this secondary offering, except for $7.5 million of proceeds from the exercise of stock options. The Company incurred expenses of $0.6 million related to legal, accounting and other fees in connection with the secondary offering, which are included in selling, general and administrative expenses in the condensed consolidated statement of income for the thirteen weeks ended April 30, 2016. (b) Fiscal Year Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearest to January 31st. References to the thirteen weeks ended April 29, 2017 and April 30, 2016 refer to the thirteen weeks from January 29, 2017 to April 29, 2017 and from January 31, 2016 to April 30, 2016, respectively. References to the fiscal year ended January 28, 2017 refer to the period from January 31, 2016 to January 28, 2017 (“fiscal year 2016”). References to the fiscal year ended February 3, 2018 refer to the period from January 29, 2017 to February 3, 2018 (“fiscal year 2017”) which is a 53-week fiscal year. (c) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of April 29, 2017 and April 30, 2016, and the condensed consolidated statements of income, condensed consolidated statements of stockholders’ equity and cash flows for the thirteen weeks ended April 29, 2017 and April 30, 2016 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for fiscal year 2017 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of , presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2017 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for the fiscal year ended January 28, 2017 and footnotes thereto included in the Annual Report. 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. (d) Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (e) Fair Value Disclosures Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows: · Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. · Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs which are observable or can be corroborated by observable market data. · Level 3 inputs are less observable and reflect the Company’s assumptions. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, revolving credit facility and term loan facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the revolving credit facility and term loan facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. (f) Recently Issued Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU 2016-02, Leases Stock Compensation In March 2016, the FASB issued ASU 2016-09, Stock Compensation

Earnings per Common Share

Earnings per Common Share	3 Months Ended
	Apr. 29, 2017
Earnings per Common Share [Abstract]
Earnings per Common Share	(2) Earnings per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding, after giving effect to the potential dilution, if applicable, from the assumed exercise of stock options into shares of common stock as if those stock options were exercised as well as assumed lapse of restrictions on restricted stock units. The following table summarizes those effects for the diluted net income per common share calculation (in thousands, except per share amounts): Thirteen weeks ended April 29, April 30, Net income $ 18,966 $ 11,748 Weighted average number of common shares outstanding – Basic 60,880 59,669 Dilutive impact of stock options and restricted stock units 3,509 2,198 Weighted average number of common shares outstanding - Diluted 64,389 61,867 Earnings per common share – Basic $ 0.31 $ 0.20 Earnings per common share - Diluted $ 0.29 $ 0.19 Weighted average stock options and restricted stock units totaling 195,626 and 312,952 for the thirteen weeks ended April 29, 2017 and April 30, 2016 respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Apr. 29, 2017
Accrued Expenses [Abstract]
Accrued Expenses	(3) Accrued Expenses Accrued expenses consists of the following (in thousands): April 29, April 30, January 28, Compensation and benefits $ 8,235 $ 7,138 $ 12,136 Freight 6,943 5,041 5,429 Advertising 3,849 2,240 5,594 Sales and use taxes 3,448 2,777 2,564 Real estate related 3,446 2,510 3,464 Insurance 2,892 3,034 3,418 Other 11,126 11,155 12,143 $ 39,939 $ 33,895 $ 44,748

Debt Obligations and Financing

Debt Obligations and Financing Arrangements	3 Months Ended
	Apr. 29, 2017
Debt Obligations and Financing Arrangements [Abstract]
Debt Obligations and Financing Arrangements	(4) Debt Obligations and Financing Arrangements Long-term debt consists of the following (in thousands): April 29, April 30, January 28, Term loan, net $ 127,968 $ 197,224 $ 193,740 Capital leases 277 62 260 Total debt 128,245 197,286 194,000 Less: current portion (6,340 ) (5,018 ) (5,077 ) Long-term debt $ 121,905 $ 192,268 $ 188,923 On January 29, 2016, the Company refinanced its existing senior secured credit facilities with the proceeds of its new Credit Facilities (as defined below). The new credit facilities consist of a $200.0 million term loan (“Term Loan Facility”) and a $100.0 million revolving credit facility (“Revolving Credit Facility”, and together with the Term Loan Facility, the “Credit Facilities”) which includes a $25.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans. The interest rates for the Credit Facilities are not subject to a floor and are calculated as the higher of the Prime Rate, the Federal Funds Effective Rate plus 0.50% or the Eurodollar Rate plus 1.0%, plus the Applicable Margin, or, for Eurodollar Loans, the Eurodollar Rate plus the Applicable Margin. The Applicable Margin will vary from 0.75% to 1.25% for a Base Rate Loan and 1.75% to 2.25% for a Eurodollar Loan, based on reference to the total leverage ratio. The Credit Facilities mature on January 29, 2021. As of April 29, 2017, the Term Loan Facility is subject to amortization with principal payable in quarterly installments of $1.25 million to be made on the last business day of each fiscal quarter prior to maturity which commenced on April 29, 2016. The quarterly installment payments increase after the fiscal year ending February 3, 2018 to $2.5 million. The remaining initial aggregate advances under the Term Loan Facility are payable at maturity. The Company made voluntary prepayments under the Term Loan Facility totaling $65.0 million during the thirteen weeks ended April 29, 2017. In connection with these prepayments, $0.3 million of debt issuance cost and $0.1 million of original issue discount were accelerated and included in loss on extinguishment of debt for the thirteen weeks ended April 29, 2017. In accordance with the terms of the Term Loan Facility, prepayments were applied against the remaining scheduled installment payments of principal due in respect of the Term Loan Facility in direct order of maturity. As a result, the Company is no longer obligated to make the scheduled installment payments of principal; however, the Company currently intends to continue to make these payments and as a result has classified such payments as current portion of long-term debt in the condensed consolidated balance sheet. Under the terms of the Revolving Credit Facility, as of April 29, 2017 the Company could borrow up to 90.0% of the most recent appraised value (valued at cost, discounted for the current net orderly liquidation value) of its eligible inventory, as defined, up to $100.0 million. As of April 29, 2017, Ollie’s had $128.0 million of outstanding indebtedness under the Term Loan Facility and no outstanding borrowings under the Revolving Credit Facility, with $97.8 million of borrowing availability, letter of credit commitments of $2.0 million and $0.2 million of rent reserves. The interest rate on the outstanding borrowings under the Term Loan Facility was 1.75% plus the 30-day Eurodollar Rate, or 2.74%. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.250% to 0.375% per annum. As of April 29, 2017, April 30, 2016 and January 28, 2017 the amounts outstanding under the Term Loan Facility, are net of unamortized original issue discount in each period of $0.1 million and deferred financing fees of $0.7 million, $1.4 million and $1.2 million, in each respective period . The Credit Facilities are collateralized by the Company’s assets and equity and contain financial covenants, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreements. The financial covenants include a consolidated fixed charge coverage ratio test of at least 1.1 to 1.0 and a total leverage test of no greater than 3.5 to 1.0. The Company was in compliance with all terms of the Credit Facilities during the thirteen weeks ended April 29, 2017. The provisions of the Credit Facilities restrict all of the net assets of the Company’s consolidated subsidiaries, which constitutes all of the net assets on the Company’s consolidated balance sheet as of April 29, 2017, from being used to pay any dividends or make other restricted payments to the Company without prior written consent from the financial institutions that are a party to the Credit Facilities, subject to certain exceptions.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 29, 2017
Income Taxes [Abstract]
Income Taxes	(5) Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for discrete events occurring in a particular period. The effective tax rates for the thirteen weeks ended April 29, 2017 and April 30, 2016 were 25.9% and 39.2%, respectively. The effective tax rate was lower for the thirteen weeks ended April 29, 2017 primarily as a result of the discrete tax benefit of $3.2 million related to the excess tax benefits from adopting ASU 2016-09, Stock Compensation

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 29, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(6) Commitments and Contingencies The Company commenced 12 new store leases during the thirteen weeks ended April 29, 2017. The fully executed leases have initial terms typically between five to ten years with options to renew for two to four successive five-year periods. The initial terms of these new store leases have future minimum lease payments totaling approximately $16.5 million. From time to time we may be involved in claims and legal actions that arise in the ordinary course of our business. We cannot predict the outcome of any litigation or suit that we are party to. However, we do not believe that an unfavorable decision of any of the current claims or legal actions against us, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, liquidity or capital resources.

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Apr. 29, 2017
Equity Incentive Plans [Abstract]
Equity Incentive Plans	(7) Equity Incentive Plans During 2012, Ollie’s established an equity incentive plan (the “2012 Plan”), under which stock options were granted to executive officers and key employees as deemed appropriate under the provisions of the 2012 Plan, with an exercise price at the fair value of the underlying stock on the date of grant. The vesting period for options granted under the 2012 Plan is five years (20% ratably per year). Options granted under the 2012 Plan are subject to employment for vesting, expire 10 years from the date of grant, and are not transferable other than upon death. As of July 15, 2015, the date of the pricing of the initial public offering, no additional equity grants will be made under the 2012 Plan. In connection with the initial public offering, the Company adopted the 2015 equity incentive plan (the “2015 Plan”) pursuant to which the Company’s Board of Directors may grant stock options, restricted shares or other awards to employees, directors and consultants. The 2015 Plan allows for the issuance of up to 5,250,000 shares. Awards will be made pursuant to agreements and may be subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee. The Company uses authorized and unissued shares to satisfy share award exercises. As of April 29, 2017, there were 3,723,269 shares available for grant under the 2015 Plan. Stock Options The exercise price for stock options is determined at the fair value on the underlying stock on the date of grant. The vesting period for awards granted under the 2015 Plan is generally set at four years (25% ratably per year). Awards are subject to employment for vesting, expire 10 years from the date of grant, and are not transferable other than upon death. A summary of the Company’s stock option activity and related information follows for the thirteen weeks ended April 29, 2017 (in thousands, except share and per share amounts): Number Weighted Weighted Outstanding at January 28, 2017 5,425,960 $ 9.62 Granted 346,348 32.19 Forfeited (17,193 ) 12.70 Exercised (354,881 ) 7.18 Outstanding at April 29, 2017 5,400,234 12.17 6.8 Exercisable at April 29, 2017 2,980,857 8.08 6.1 The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The weighted average grant date fair value per option for options granted during the thirteen weeks ended April 29, 2017 and April 30, 2016 was $10.56 and $6.44, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table: Thirteen weeks ended April 29, April 30, Risk-free interest rate 2.20 % 1.72 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 28.36 % 28.52 % Restricted Stock Units Restricted stock units (“RSUs”) are issued at a value not less than the fair market value of the common stock on the date of the grant. RSUs granted to date vest ratably over three or four years or cliff vest in one or four years. Awards are subject to employment for vesting and are not transferable other than upon death. A summary of the Company’s RSUs activity and related information for the thirteen weeks ended April 29, 2017, is as follows: Number Weighted Nonvested balance at January 28, 2017 136,718 $ 20.36 Granted 94,121 32.19 Vested (25,886 ) 20.26 Nonvested balance at April 29, 2017 204,953 25.81 Stock Based Compensation Expense The compensation cost for stock options and RSUs which have been recorded within selling, general and administrative expenses related to the Company’s equity incentive plans was $1.9 million for the thirteen weeks ended April 29, 2017, and $1.5 million for the thirteen weeks ended . As of April 29, 2017 there was $17.3 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.7 years as of April 29, 2017. Compensation costs related to awards are recognized using the straight-line method.

Transactions with Related Parti

Transactions with Related Parties	3 Months Ended
	Apr. 29, 2017
Transactions with Related Parties
Transactions with Related Parties	(8) Transactions with Related Parties The Company has entered into five non-cancelable operating leases with related parties for office and store locations. Ollie’s has made $0.3 million in rent payments to such related parties during each of the thirteen weeks ended April 29, 2017 and April 30, 2016. During the thirteen weeks ended April 29, 2017 and April 30, 2016, the Company paid approximately $35,000 and $20,000, respectively, for the use of an airplane owned by a related party.

Organization and Summary of S15

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 29, 2017
Organization and Summary of Significant Accounting Policies [Abstract]
Fiscal Year	(b) Fiscal Year Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearest to January 31st. References to the thirteen weeks ended April 29, 2017 and April 30, 2016 refer to the thirteen weeks from January 29, 2017 to April 29, 2017 and from January 31, 2016 to April 30, 2016, respectively. References to the fiscal year ended January 28, 2017 refer to the period from January 31, 2016 to January 28, 2017 (“fiscal year 2016”). References to the fiscal year ended February 3, 2018 refer to the period from January 29, 2017 to February 3, 2018 (“fiscal year 2017”) which is a 53-week fiscal year.
Basis of Presentation	(c) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of April 29, 2017 and April 30, 2016, and the condensed consolidated statements of income, condensed consolidated statements of stockholders’ equity and cash flows for the thirteen weeks ended April 29, 2017 and April 30, 2016 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for fiscal year 2017 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of , presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2017 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for the fiscal year ended January 28, 2017 and footnotes thereto included in the Annual Report. 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.
Use of Estimates	(d) Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value Disclosures	(e) Fair Value Disclosures Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows: · Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. · Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs which are observable or can be corroborated by observable market data. · Level 3 inputs are less observable and reflect the Company’s assumptions. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, revolving credit facility and term loan facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the revolving credit facility and term loan facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions.
Recently Issued Accounting Pronouncements	(f) Recently Issued Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU 2016-02, Leases Stock Compensation In March 2016, the FASB issued ASU 2016-09, Stock Compensation

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	3 Months Ended
	Apr. 29, 2017
Earnings per Common Share [Abstract]
Earnings per Common Share	The following table summarizes those effects for the diluted net income per common share calculation (in thousands, except per share amounts): Thirteen weeks ended April 29, April 30, Net income $ 18,966 $ 11,748 Weighted average number of common shares outstanding – Basic 60,880 59,669 Dilutive impact of stock options and restricted stock units 3,509 2,198 Weighted average number of common shares outstanding - Diluted 64,389 61,867 Earnings per common share – Basic $ 0.31 $ 0.20 Earnings per common share - Diluted $ 0.29 $ 0.19

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Apr. 29, 2017
Accrued Expenses [Abstract]
Accrued Expenses	Accrued expenses consists of the following (in thousands): April 29, April 30, January 28, Compensation and benefits $ 8,235 $ 7,138 $ 12,136 Freight 6,943 5,041 5,429 Advertising 3,849 2,240 5,594 Sales and use taxes 3,448 2,777 2,564 Real estate related 3,446 2,510 3,464 Insurance 2,892 3,034 3,418 Other 11,126 11,155 12,143 $ 39,939 $ 33,895 $ 44,748

Debt Obligations and Financin18

Debt Obligations and Financing Arrangements (Tables)	3 Months Ended
	Apr. 29, 2017
Debt Obligations and Financing Arrangements [Abstract]
Long-term Debt	Long-term debt consists of the following (in thousands): April 29, April 30, January 28, Term loan, net $ 127,968 $ 197,224 $ 193,740 Capital leases 277 62 260 Total debt 128,245 197,286 194,000 Less: current portion (6,340 ) (5,018 ) (5,077 ) Long-term debt $ 121,905 $ 192,268 $ 188,923

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Apr. 29, 2017
Equity Incentive Plans [Abstract]
Stock Option Activity	A summary of the Company’s stock option activity and related information follows for the thirteen weeks ended April 29, 2017 (in thousands, except share and per share amounts): Number Weighted Weighted Outstanding at January 28, 2017 5,425,960 $ 9.62 Granted 346,348 32.19 Forfeited (17,193 ) 12.70 Exercised (354,881 ) 7.18 Outstanding at April 29, 2017 5,400,234 12.17 6.8 Exercisable at April 29, 2017 2,980,857 8.08 6.1
Weighted Average Assumptions	The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table: Thirteen weeks ended April 29, April 30, Risk-free interest rate 2.20 % 1.72 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 28.36 % 28.52 %
RSU Activity	A summary of the Company’s RSUs activity and related information for the thirteen weeks ended April 29, 2017, is as follows: Number Weighted Nonvested balance at January 28, 2017 136,718 $ 20.36 Granted 94,121 32.19 Vested (25,886 ) 20.26 Nonvested balance at April 29, 2017 204,953 25.81

Organization and Summary of S20

Organization and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Feb. 19, 2016USD ($)$ / sharesshares	Feb. 18, 2016USD ($)shares	Apr. 29, 2017USD ($)LocationStateSegmentshares	Apr. 30, 2016USD ($)shares
Organization and Summary of Significant Accounting Policies [Abstract]
Number of retail locations | Location			239
Number of states in which retail locations are located | State			20
Secondary Offering [Abstract]
Proceeds from stock option exercises | $			$ 2,555	$ 7,825
Basis of Presentation [Abstract]
Number of operating segments | Segment			1
Common Stock [Member]
Secondary Offering [Abstract]
Number of options exercised (in shares)			355,000	1,204,000
Common Stock [Member] | Secondary Offering [Member]
Secondary Offering [Abstract]
Shares sold in secondary offering (in shares)		7,873,063
Shares purchased by underwriters in secondary offering (in shares)	1,180,959
Shares sold in secondary offering, including shares purchased by underwriters (in shares)	9,054,022
Number of options exercised (in shares)		1,152,500
Share price of stock sold in secondary offering (in dollars per share) | $ / shares	$ 19.75
Proceeds from stock option exercises | $		$ 7,500
Common Stock [Member] | Secondary Offering [Member] | Selling, General and Administrative Expenses [Member]
Secondary Offering [Abstract]
Legal, accounting and other fees | $	$ 600

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Earnings per Common Share [Abstract]
Net income	$ 18,966	$ 11,748
Weighted average number of common shares outstanding - Basic (in shares)	60,880,000	59,669,000
Dilutive impact of stock options and restricted stock units (in shares)	3,509,000	2,198,000
Weighted average number of common shares outstanding - Diluted (in shares)	64,389,000	61,867,000
Earnings per common share - Basic (in dollars per share)	$ 0.31	$ 0.20
Earnings per common share - Diluted (in dollars per share)	$ 0.29	$ 0.19
Stock Options [Member]
Earnings per Common Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	195,626	312,952
Restricted Stock Units [Member]
Earnings per Common Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	195,626	312,952

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Accrued Expenses [Abstract]
Compensation and benefits	$ 8,235	$ 12,136	$ 7,138
Freight	6,943	5,429	5,041
Advertising	3,849	5,594	2,240
Sales and use taxes	3,448	2,564	2,777
Real estate related	3,446	3,464	2,510
Insurance	2,892	3,418	3,034
Other	11,126	12,143	11,155
Total accrued expenses	$ 39,939	$ 44,748	$ 33,895

Debt Obligations and Financin23

Debt Obligations and Financing Arrangements, Long-term Debt (Details) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Debt Obligations and Financing Arrangements [Abstract]
Term loan, net	$ 127,968	$ 193,740	$ 197,224
Capital leases	277	260	62
Total debt	128,245	194,000	197,286
Less: current portion	(6,340)	(5,077)	(5,018)
Long-term debt	$ 121,905	$ 188,923	$ 192,268

Debt Obligations and Financin24

Debt Obligations and Financing Arrangements, Credit Facilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016	Jan. 29, 2016
Credit Facilities [Member]
Debt Obligations and Financing Arrangements [Abstract]
Maturity date	Jan. 29, 2021
Credit Facilities [Member] | Minimum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Consolidated fixed charge coverage ratio	1.1
Credit Facilities [Member] | Maximum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Total leverage ratio	3.5
Credit Facilities [Member] | Federal Funds Effective Rate [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	0.50%
Credit Facilities [Member] | Eurodollar Rate [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	1.00%
Credit Facilities [Member] | Eurodollar Rate [Member] | Minimum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	1.75%
Credit Facilities [Member] | Eurodollar Rate [Member] | Maximum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	2.25%
Credit Facilities [Member] | Base Rate [Member] | Minimum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	0.75%
Credit Facilities [Member] | Base Rate [Member] | Maximum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	1.25%
Term Loan Facility [Member]
Debt Obligations and Financing Arrangements [Abstract]
Face amount				$ 200,000
Frequency of principal payment	Quarterly
Repayment of debt	$ 65,000
Debt issuance costs written off	300
Original issue discount written off	100
Outstanding indebtedness	$ 128,000
Interest rate on outstanding borrowings	2.74%
Unamortized original issue discount	$ 100	$ 100	$ 100
Deferred financing fees	700	$ 1,200	$ 1,400
Term Loan Facility [Member] | Commencing April 29, 2016 [Member]
Debt Obligations and Financing Arrangements [Abstract]
Principal payment	1,250
Term Loan Facility [Member] | After Fiscal Year Ending February 3, 2018 [Member]
Debt Obligations and Financing Arrangements [Abstract]
Principal payment	$ 2,500
Term Loan Facility [Member] | Eurodollar Rate [Member]
Debt Obligations and Financing Arrangements [Abstract]
Basis spread	1.75%
Term of variable rate	30 days
Revolving Credit Facility [Member]
Debt Obligations and Financing Arrangements [Abstract]
Maximum borrowing capacity	$ 100,000			100,000
Percentage of most recent appraised value of eligible inventory	90.00%
Outstanding borrowings	$ 0
Borrowing availability	97,800
Letter of credit commitments	2,000
Rent reserves	$ 200
Revolving Credit Facility [Member] | Minimum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Variable unused line fee percentage	0.25%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Obligations and Financing Arrangements [Abstract]
Variable unused line fee percentage	0.375%
Letters of Credit [Member]
Debt Obligations and Financing Arrangements [Abstract]
Maximum borrowing capacity				25,000
Swingline Loans [Member]
Debt Obligations and Financing Arrangements [Abstract]
Maximum borrowing capacity				$ 25,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Income Taxes [Abstract]
Effective tax rate percentage	25.90%	39.20%
Tax benefit related to excess tax benefits from adopting ASU 2016-09 for stock compensation	$ (3.2)

Commitments and Contingencies (

Commitments and Contingencies (Details) - New Stores [Member] $ in Millions	3 Months Ended
	Apr. 29, 2017USD ($)LeaseOption
Commitments and Contingencies [Abstract]
Number of new store leases | Lease	12
Renewal term of leases	5 years
Future minimum lease payments | $	$ 16.5
Minimum [Member]
Commitments and Contingencies [Abstract]
Initial term of leases	5 years
Number of options to renew leases	2
Maximum [Member]
Commitments and Contingencies [Abstract]
Initial term of leases	10 years
Number of options to renew leases	4

Equity Incentive Plans, Equity

Equity Incentive Plans, Equity Incentive Plans (Details)	3 Months Ended
	Apr. 29, 2017shares
2012 Plan [Member] | Stock Options [Member]
Equity Incentive Plans [Abstract]
Vesting period	5 years
Vesting percentage	20.00%
Expiration period	10 years
2015 Plan [Member]
Equity Incentive Plans [Abstract]
Number of shares authorized for issuance (in shares)	5,250,000
Number of shares available for grant (in shares)	3,723,269
2015 Plan [Member] | Stock Options [Member]
Equity Incentive Plans [Abstract]
Vesting period	4 years
Vesting percentage	25.00%
Expiration period	10 years

Equity Incentive Plans, Stock O

Equity Incentive Plans, Stock Option Activity (Details) - Stock Options [Member]	3 Months Ended
	Apr. 29, 2017$ / sharesshares
Number of Options [Roll Forward]
Outstanding at beginning of period (in shares) | shares	5,425,960
Granted (in shares) | shares	346,348
Forfeited (in shares) | shares	(17,193)
Exercised (in shares) | shares	(354,881)
Outstanding at end of period (in shares) | shares	5,400,234
Exercisable at end of period (in shares) | shares	2,980,857
Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.62
Granted (in dollars per share) | $ / shares	32.19
Forfeited (in dollars per share) | $ / shares	12.70
Exercised (in dollars per share) | $ / shares	7.18
Outstanding at end of period (in dollars per share) | $ / shares	12.17
Exercisable at end of period (in dollars per share) | $ / shares	$ 8.08
Weighted Average Remaining Contractual Term [Abstract]
Outstanding at end of period	6 years 9 months 18 days
Exercisable at end of period	6 years 1 month 6 days

Equity Incentive Plans, Weighte

Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Equity Incentive Plans [Abstract]
Weighted average grant date fair value per option granted (in dollars per share)	$ 10.56	$ 6.44
Risk-free interest rate	2.20%	1.72%
Expected dividend yield	0.00%	0.00%
Expected term	6 years 3 months	6 years 3 months
Expected volatility	28.36%	28.52%

Equity Incentive Plans, RSU Act

Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member]	3 Months Ended
	Apr. 29, 2017$ / sharesshares
Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares) | shares	136,718
Granted (in shares) | shares	94,121
Vested (in shares) | shares	(25,886)
Nonvested at end of period (in shares) | shares	204,953
Weighted Average Grant Date Fair Value [Abstract]
Nonvested at beginning of period (in dollars per share) | $ / shares	$ 20.36
Granted (in dollars per share) | $ / shares	32.19
Vested (in dollars per share) | $ / shares	20.26
Nonvested at end of period (in dollars per share) | $ / shares	$ 25.81
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Cliff vesting period	1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Cliff vesting period	4 years

Equity Incentive Plans, Stock-B

Equity Incentive Plans, Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Stock-Based Compensation Expense [Abstract]
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements	$ 17.3
Weighted average period to recognize stock-based compensation expense	2 years 8 months 12 days
Selling, General and Administrative Expenses [Member]
Stock-Based Compensation Expense [Abstract]
Compensation expense	$ 1.9	$ 1.5

Transactions with Related Par32

Transactions with Related Parties (Details) $ in Thousands	3 Months Ended
	Apr. 29, 2017USD ($)Lease	Apr. 30, 2016USD ($)
Operating Leases for Office and Store Locations [Member]
Transactions with Related Parties [Abstract]
Number of non-cancelable operating leases with related parties | Lease	5
Payments to related parties	$ 300	$ 300
Use of Airplane [Member]
Transactions with Related Parties [Abstract]
Payments to related parties	$ 35	$ 20