Ollie's Bargain Outlet (OLLI) 10-Q 7 Dec 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 28, 2017	Dec. 06, 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		61,657,031
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 28, 2017

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Condensed Consolidated Statements of Income (Unaudited) [Abstract]
Net sales	$ 238,116	$ 201,985	$ 720,363	$ 606,960
Cost of sales	140,127	117,795	429,213	359,941
Gross profit	97,989	84,190	291,150	247,019
Selling, general and administrative expenses	68,124	60,522	195,633	173,068
Depreciation and amortization expenses	2,503	2,142	7,150	6,188
Pre-opening expenses	3,152	2,879	7,005	6,152
Operating income	24,210	18,647	81,362	61,611
Interest expense, net	1,143	1,405	3,601	4,540
Loss on extinguishment of debt	0	0	397	0
Income before income taxes	23,067	17,242	77,364	57,071
Income tax expense	4,205	6,781	19,824	21,727
Net income	$ 18,862	$ 10,461	$ 57,540	$ 35,344
Earnings per common share:
Basic (in dollars per share)	$ 0.31	$ 0.17	$ 0.94	$ 0.59
Diluted (in dollars per share)	$ 0.29	$ 0.17	$ 0.89	$ 0.57
Weighted average common shares outstanding:
Basic (in shares)	61,488	60,301	61,187	60,005
Diluted (in shares)	65,102	62,515	64,794	62,247

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 28, 2017	Jan. 28, 2017	Oct. 29, 2016
Current assets:
Cash and cash equivalents	$ 42,164	$ 98,683	$ 35,961
Inventories	284,331	210,107	240,767
Accounts receivable	990	301	283
Prepaid expenses and other assets	3,882	3,739	5,363
Total current assets	331,367	312,830	282,374
Property and equipment, net of accumulated depreciation of $46,909, $35,600 and $38,393, respectively	53,632	46,333	46,890
Goodwill	444,850	444,850	444,850
Trade name and other intangible assets, net of accumulated amortization of $1,741, $1,543 and $1,636, respectively	232,723	232,977	233,070
Other assets	2,256	2,385	2,400
Total assets	1,064,828	1,039,375	1,009,584
Current liabilities:
Current portion of long-term debt	8,882	5,077	5,091
Accounts payable	70,618	50,448	58,011
Income taxes payable	5,731	4,548	0
Accrued expenses	45,691	44,748	43,211
Total current liabilities	130,922	104,821	106,313
Revolving credit facility	0	0	0
Long-term debt	117,120	188,923	190,105
Deferred income taxes	88,011	89,224	85,982
Other long-term liabilities	6,943	5,146	5,332
Total liabilities	342,996	388,114	387,732
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; 61,666, 60,529 and 60,756 shares issued, respectively	62	61	61
Additional paid-in capital	578,891	565,861	560,872
Retained earnings	142,965	85,425	61,005
Treasury - common stock, at cost; 9 shares	(86)	(86)	(86)
Total stockholders' equity	721,832	651,261	621,852
Total liabilities and stockholders' equity	$ 1,064,828	$ 1,039,375	$ 1,009,584

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 28, 2017	Jan. 28, 2017	Oct. 29, 2016
Assets
Property and equipment, accumulated depreciation	$ 46,909	$ 38,393	$ 35,600
Trade name and other intangible assets, accumulated amortization	$ 1,741	$ 1,636	$ 1,543
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)	61,666	60,756	60,529
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	4,979	0	4,979
Proceeds from stock options exercised	$ 2	$ 0	11,744	0	11,746
Proceeds from stock options exercised (in shares)	1,722	0
Excess tax benefit related to exercises of stock options	$ 0	$ 0	7,834	0	7,834
Net income	0	0	0	35,344	35,344
Ending balance at Oct. 29, 2016	$ 61	$ (86)	560,872	61,005	621,852
Ending balance (in shares) at Oct. 29, 2016	60,529	(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	5,932	0	5,932
Proceeds from stock options exercised	$ 1	$ 0	7,317	0	7,318
Proceeds from stock options exercised (in shares)	890	0
Vesting of restricted stock	$ 0	$ 0	0	0	0
Vesting of restricted stock (in shares)	27	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	57,540	57,540
Ending balance at Oct. 28, 2017	$ 62	$ (86)	$ 578,891	$ 142,965	$ 721,832
Ending balance (in shares) at Oct. 28, 2017	61,666	(9)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016
Cash flows from operating activities:
Net income	$ 57,540	$ 35,344
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	8,707	7,486
Amortization of debt issuance costs	497	562
Amortization of original issue discount	13	18
Loss on extinguishment of debt	397	0
Gain on disposal of assets	(21)	0
Amortization of intangibles	254	284
Deferred income tax benefit	(1,213)	(1,189)
Deferred rent expense	1,691	1,129
Stock-based compensation expense	5,932	4,979
Excess tax benefit related to exercises of stock options	0	(7,834)
Changes in operating assets and liabilities:
Inventories	(74,224)	(50,159)
Accounts receivable	(689)	(100)
Prepaid expenses and other assets	(326)	(2,799)
Accounts payable	19,300	5,214
Income taxes payable	1,183	3,732
Accrued expenses and other liabilities	1,343	7,494
Net cash provided by operating activities	20,384	4,161
Cash flows from investing activities:
Purchases of property and equipment	(15,205)	(14,233)
Proceeds from sale of property and equipment	86	15
Net cash used in investing activities	(15,119)	(14,218)
Cash flows from financing activities:
Borrowings on revolving credit facility	759,691	641,199
Repayments on revolving credit facility	(759,691)	(641,199)
Repayments on term loan and capital leases	(68,883)	(3,821)
Proceeds from stock option exercises	7,318	11,746
Common shares withheld for taxes	(219)	0
Excess tax benefit related to exercises of stock options	0	7,834
Net cash provided by (used in) financing activities	(61,784)	15,759
Net increase (decrease) in cash and cash equivalents	(56,519)	5,702
Cash and cash equivalents at the beginning of the period	98,683	30,259
Cash and cash equivalents at the end of the period	42,164	35,961
Cash paid during the period for:
Interest	3,093	3,976
Income taxes	19,857	21,039
Non-cash investing activities:
Accrued purchases of property and equipment	$ 1,584	$ 969

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Oct. 28, 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 consistently provide value-priced goods in select key merchandise categories. Since the first store opened in 1982, the Company has grown to 265 Ollie’s Bargain Outlet retail locations as of October 28, 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 October 28, 2017. (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 October 28, 2017 and October 29, 2016 refer to the thirteen weeks from July 30, 2017 to October 28, 2017 and from July 31, 2016 to October 29, 2016, respectively. The year-to-date periods ended October 28, 2017 and October 29, 2016 refer to the thirty-nine weeks from January 29, 2017 to October 28, 2017 and January 31, 2016 to October 29, 2016, respectively. References to the fiscal year ending 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. References to the fiscal year ended January 28, 2017 refer to the period from January 31, 2016 to January 28, 2017 (“fiscal year 2016”), which was a 52-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 October 28, 2017 and October 29, 2016, the condensed consolidated statements of income for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016, respectively, and the condensed consolidated statements of stockholders’ equity and cash flows for the thirty-nine weeks ended October 28, 2017 and October 29, 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; and · 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 The Company is in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto, having identified sales attributed to loyalty benefit programs and gift card breakage as areas which will most likely be affected. Upon adoption of this guidance, there may be a change in the presentation and timing of when such revenue is recognized. The new standard will also require a change in the presentation of the Company’s sales return reserve on its balance sheet, which is currently recorded on a net basis. The new guidance requires the reserve to be established at the gross sales value with an asset established for the value of the merchandise returned. The Company plans to adopt this standard in the first quarter of its fiscal year ending January 26, 2019 using the cumulative effect transition method. 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	9 Months Ended
	Oct. 28, 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 Thirty-nine weeks ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Net income $ 18,862 $ 10,461 $ 57,540 $ 35,344 Weighted average number of common shares outstanding – Basic 61,488 60,301 61,187 60,005 Dilutive impact of stock options and restricted stock units 3,614 2,214 3,607 2,242 Weighted average number of common shares outstanding - Diluted 65,102 62,515 64,794 62,247 Earnings per common share – Basic $ 0.31 $ 0.17 $ 0.94 $ 0.59 Earnings per common share - Diluted $ 0.29 $ 0.17 $ 0.89 $ 0.57 Weighted average stock options and restricted stock units totaling 3,284 and 3,736 for the thirteen weeks ended October 28, 2017 and October 29, 2016, respectively, and 181,756 and 106,284 for the thirty-nine weeks ended October 28, 2017 and October 29, 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	9 Months Ended
	Oct. 28, 2017
Accrued Expenses [Abstract]
Accrued Expenses	(3) Accrued Expenses Accrued expenses consists of the following (in thousands): October 28, 2017 October 29, 2016 January 28, 2017 Compensation and benefits $ 13,003 $ 12,622 $ 12,136 Freight 5,391 6,690 5,429 Advertising 4,668 3,946 5,594 Sales and use taxes 4,239 3,319 2,564 Real estate related 3,793 3,191 3,464 Insurance 3,622 3,318 3,418 Other 10,975 10,125 12,143 $ 45,691 $ 43,211 $ 44,748

Debt Obligations and Financing

Debt Obligations and Financing Arrangements	9 Months Ended
	Oct. 28, 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): October 28, 2017 October 29, 2016 January 28, 2017 Term loan, net $ 125,586 $ 194,903 $ 193,740 Capital leases 416 293 260 Total debt 126,002 195,196 194,000 Less: current portion (8,882 ) (5,091 ) (5,077 ) Long-term debt $ 117,120 $ 190,105 $ 188,923 On January 29, 2016, the Company refinanced its existing senior secured credit facility with the proceeds of its new Credit Facilities (as defined below). The 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 the total leverage ratio. The Credit Facilities mature on January 29, 2021. As of October 28, 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. The quarterly installment payments increase to $2.5 million after the fiscal year ending February 3, 2018. 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 thirty-nine weeks ended October 28, 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 thirty-nine weeks ended . In accordance with the terms of the Term Loan Facility, prepayments were applied against the remaining scheduled installment payments of principal due under 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 therefore 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 October 28, 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 October 28, 2017, Ollie’s had $125.6 million of outstanding indebtedness under the Term Loan Facility and no outstanding borrowings under the Revolving Credit Facility, with $98.5 million of borrowing availability, letter of credit commitments of $1.3 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 2.99%. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.250% to 0.375% per annum. As of October 28, 2017, October 29, 2016 and January 28, 2017 , . 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 as of the thirteen and thirty-nine weeks ended October 28, 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 October 28, 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	9 Months Ended
	Oct. 28, 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 and thirty-nine weeks ended October 28, 2017 were 18.2% and 25.6%, respectively. The effective tax rates for the thirteen and thirty-nine weeks ended October 29, 2016 were 39.3% and 38.1%, respectively. The effective tax rate was lower for the thirteen and thirty-nine weeks ended October 28, 2017 primarily as a result of the discrete tax benefit of $4.7 million and $9.8 million, respectively, related to the excess tax benefits from adopting ASU 2016-09, Stock Compensation

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 28, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(6) Commitments and Contingencies The Company commenced 34 new leases during the thirty-nine weeks ended October 28, 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 $47.0 million. 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 litigation or suit 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.

Equity Incentive Plans

Equity Incentive Plans	9 Months Ended
	Oct. 28, 2017
Equity Incentive Plans [Abstract]
Equity Incentive Plans	(7) Equity Incentive Plans 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 October 28, 2017, there were 3,787,417 shares available for grant under the 2015 Plan. Stock Options The exercise price for stock options is determined at the fair value of 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 thirty-nine weeks ended October 28, 2017: Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at January 28, 2017 5,425,960 $ 9.62 Granted 352,674 32.37 Forfeited (89,616 ) 15.57 Exercised (890,387 ) 8.22 Outstanding at October 28, 2017 4,798,631 11.40 6.3 Exercisable at October 28, 2017 3,279,507 8.16 5.6 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 thirty-nine weeks ended October 28, 2017 and October 29, 2016 was $10.60 and $6.45, 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: Thirty-nine weeks ended October 28, 2017 October 29, 2016 Risk-free interest rate 2.20 % 1.72 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 28.33 % 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 RSU activity and related information for the thirty-nine weeks ended October 28, 2017 is as follows: Number of shares Weighted average grant date fair value Nonvested balance at January 28, 2017 136,718 $ 20.36 Granted 96,070 32.40 Vested (26,665 ) 20.37 Nonvested balance at October 28, 2017 206,123 25.97 Stock-Based Compensation Expense The compensation cost for stock options and RSUs related to the Company’s equity incentive plans was $1.9 million and $5.9 million for the thirteen and thirty-nine weeks ended October 28, 2017, respectively, and $1.7 million and $5.0 million for the thirteen and thirty-nine weeks ended October 29, 2016, respectively. These costs have been recorded within selling, general and administrative expenses. As of October 28, 2017, there was $13.0 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 2.6 years as of October 28, 2017. Compensation costs related to awards are recognized using the straight-line method.

Transactions with Related Parti

Transactions with Related Parties	9 Months Ended
	Oct. 28, 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 $1.0 million and $0.9 million in rent payments to such related parties during each of the thirty-nine weeks ended October 28, 2017 and October 29, 2016, respectively. During the thirty-nine weeks ended October 28, 2017 and October 29, 2016, the Company paid approximately $35,000 and $0.1 million, respectively, for the use of an airplane owned by a related party.

Subsequent Event

Subsequent Event	9 Months Ended
	Oct. 28, 2017
Subsequent Event [Abstract]
Subsequent Event	(9) Subsequent Event On November 21, 2017, the Company paid down $30.0 million on its Term Loan Facility using existing cash on hand.

Organization and Summary of S16

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 28, 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 October 28, 2017 and October 29, 2016 refer to the thirteen weeks from July 30, 2017 to October 28, 2017 and from July 31, 2016 to October 29, 2016, respectively. The year-to-date periods ended October 28, 2017 and October 29, 2016 refer to the thirty-nine weeks from January 29, 2017 to October 28, 2017 and January 31, 2016 to October 29, 2016, respectively. References to the fiscal year ending 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. References to the fiscal year ended January 28, 2017 refer to the period from January 31, 2016 to January 28, 2017 (“fiscal year 2016”), which was a 52-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 October 28, 2017 and October 29, 2016, the condensed consolidated statements of income for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016, respectively, and the condensed consolidated statements of stockholders’ equity and cash flows for the thirty-nine weeks ended October 28, 2017 and October 29, 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.
Segments	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; and · 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 The Company is in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto, having identified sales attributed to loyalty benefit programs and gift card breakage as areas which will most likely be affected. Upon adoption of this guidance, there may be a change in the presentation and timing of when such revenue is recognized. The new standard will also require a change in the presentation of the Company’s sales return reserve on its balance sheet, which is currently recorded on a net basis. The new guidance requires the reserve to be established at the gross sales value with an asset established for the value of the merchandise returned. The Company plans to adopt this standard in the first quarter of its fiscal year ending January 26, 2019 using the cumulative effect transition method. 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)	9 Months Ended
	Oct. 28, 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 Thirty-nine weeks ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Net income $ 18,862 $ 10,461 $ 57,540 $ 35,344 Weighted average number of common shares outstanding – Basic 61,488 60,301 61,187 60,005 Dilutive impact of stock options and restricted stock units 3,614 2,214 3,607 2,242 Weighted average number of common shares outstanding - Diluted 65,102 62,515 64,794 62,247 Earnings per common share – Basic $ 0.31 $ 0.17 $ 0.94 $ 0.59 Earnings per common share - Diluted $ 0.29 $ 0.17 $ 0.89 $ 0.57

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Oct. 28, 2017
Accrued Expenses [Abstract]
Accrued Expenses	Accrued expenses consists of the following (in thousands): October 28, 2017 October 29, 2016 January 28, 2017 Compensation and benefits $ 13,003 $ 12,622 $ 12,136 Freight 5,391 6,690 5,429 Advertising 4,668 3,946 5,594 Sales and use taxes 4,239 3,319 2,564 Real estate related 3,793 3,191 3,464 Insurance 3,622 3,318 3,418 Other 10,975 10,125 12,143 $ 45,691 $ 43,211 $ 44,748

Debt Obligations and Financin19

Debt Obligations and Financing Arrangements (Tables)	9 Months Ended
	Oct. 28, 2017
Debt Obligations and Financing Arrangements [Abstract]
Long-term Debt	Long-term debt consists of the following (in thousands): October 28, 2017 October 29, 2016 January 28, 2017 Term loan, net $ 125,586 $ 194,903 $ 193,740 Capital leases 416 293 260 Total debt 126,002 195,196 194,000 Less: current portion (8,882 ) (5,091 ) (5,077 ) Long-term debt $ 117,120 $ 190,105 $ 188,923

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	9 Months Ended
	Oct. 28, 2017
Equity Incentive Plans [Abstract]
Stock Option Activity	A summary of the Company’s stock option activity and related information follows for the thirty-nine weeks ended October 28, 2017: Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at January 28, 2017 5,425,960 $ 9.62 Granted 352,674 32.37 Forfeited (89,616 ) 15.57 Exercised (890,387 ) 8.22 Outstanding at October 28, 2017 4,798,631 11.40 6.3 Exercisable at October 28, 2017 3,279,507 8.16 5.6
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: Thirty-nine weeks ended October 28, 2017 October 29, 2016 Risk-free interest rate 2.20 % 1.72 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 28.33 % 28.52 %
RSU Activity	A summary of the Company’s RSU activity and related information for the thirty-nine weeks ended October 28, 2017 is as follows: Number of shares Weighted average grant date fair value Nonvested balance at January 28, 2017 136,718 $ 20.36 Granted 96,070 32.40 Vested (26,665 ) 20.37 Nonvested balance at October 28, 2017 206,123 25.97

Organization and Summary of S21

Organization and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Oct. 28, 2017LocationStateSegment
Organization and Summary of Significant Accounting Policies [Abstract]
Number of retail locations | Location	265
Number of states in which retail locations are located | State	20
Number of operating segments | Segment	1

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Earnings per Common Share [Abstract]
Net income	$ 18,862	$ 10,461	$ 57,540	$ 35,344
Weighted average number of common shares outstanding - Basic (in shares)	61,488,000	60,301,000	61,187,000	60,005,000
Dilutive impact of stock options and restricted stock units (in shares)	3,614,000	2,214,000	3,607,000	2,242,000
Weighted average number of common shares outstanding - Diluted (in shares)	65,102,000	62,515,000	64,794,000	62,247,000
Earnings per common share - Basic (in dollars per share)	$ 0.31	$ 0.17	$ 0.94	$ 0.59
Earnings per common share - Diluted (in dollars per share)	$ 0.29	$ 0.17	$ 0.89	$ 0.57
Stock Options and Restricted Stock Units [Member]
Earnings per Common Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,284	3,736	181,756	106,284

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Jan. 28, 2017	Oct. 29, 2016
Accrued Expenses [Abstract]
Compensation and benefits	$ 13,003	$ 12,136	$ 12,622
Freight	5,391	5,429	6,690
Advertising	4,668	5,594	3,946
Sales and use taxes	4,239	2,564	3,319
Real estate related	3,793	3,464	3,191
Insurance	3,622	3,418	3,318
Other	10,975	12,143	10,125
Total accrued expenses	$ 45,691	$ 44,748	$ 43,211

Debt Obligations and Financin24

Debt Obligations and Financing Arrangements, Long-term Debt (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Jan. 28, 2017	Oct. 29, 2016
Debt Obligations and Financing Arrangements [Abstract]
Term loan, net	$ 125,586	$ 193,740	$ 194,903
Capital leases	416	260	293
Total debt	126,002	194,000	195,196
Less: current portion	(8,882)	(5,077)	(5,091)
Long-term debt	$ 117,120	$ 188,923	$ 190,105

Debt Obligations and Financin25

Debt Obligations and Financing Arrangements, Credit Facilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 28, 2017	Jan. 28, 2017	Oct. 29, 2016	Jan. 29, 2016
Debt Obligations and Financing Arrangements [Abstract]
Outstanding indebtedness	$ 125,586	$ 193,740	$ 194,903
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	$ 125,600
Interest rate on outstanding borrowings	2.99%
Unamortized original issue discount	$ 46	100	100
Deferred financing fees	600	$ 1,200	$ 1,300
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	98,500
Letter of credit commitments	1,300
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		9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Income Taxes [Abstract]
Effective tax rate percentage	18.20%	39.30%	25.60%	38.10%
Tax benefit related to excess tax benefits from adopting ASU 2016-09 for stock compensation	$ (4.7)		$ (9.8)

Commitments and Contingencies (

Commitments and Contingencies (Details) - New Stores [Member] $ in Millions	9 Months Ended
	Oct. 28, 2017USD ($)LeaseOption
Commitments and Contingencies [Abstract]
Number of new store leases | Lease	34
Renewal term of leases	5 years
Future minimum lease payments | $	$ 47
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) - 2015 Plan [Member]	9 Months Ended
	Oct. 28, 2017shares
Equity Incentive Plans [Abstract]
Number of shares authorized for issuance (in shares)	5,250,000
Number of shares available for grant (in shares)	3,787,417
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]	9 Months Ended
	Oct. 28, 2017$ / sharesshares
Number of Options [Roll Forward]
Outstanding at beginning of period (in shares) | shares	5,425,960
Granted (in shares) | shares	352,674
Forfeited (in shares) | shares	(89,616)
Exercised (in shares) | shares	(890,387)
Outstanding at end of period (in shares) | shares	4,798,631
Exercisable at end of period (in shares) | shares	3,279,507
Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.62
Granted (in dollars per share) | $ / shares	32.37
Forfeited (in dollars per share) | $ / shares	15.57
Exercised (in dollars per share) | $ / shares	8.22
Outstanding at end of period (in dollars per share) | $ / shares	11.40
Exercisable at end of period (in dollars per share) | $ / shares	$ 8.16
Weighted Average Remaining Contractual Term [Abstract]
Outstanding at end of period	6 years 3 months 18 days
Exercisable at end of period	5 years 7 months 6 days

Equity Incentive Plans, Weighte

Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares	9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016
Equity Incentive Plans [Abstract]
Weighted average grant date fair value per option granted (in dollars per share)	$ 10.60	$ 6.45
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	28.33%	28.52%

Equity Incentive Plans, RSU Act

Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member]	9 Months Ended
	Oct. 28, 2017$ / sharesshares
Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares) | shares	136,718
Granted (in shares) | shares	96,070
Vested (in shares) | shares	(26,665)
Nonvested at end of period (in shares) | shares	206,123
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	32.40
Vested (in dollars per share) | $ / shares	20.37
Nonvested at end of period (in dollars per share) | $ / shares	$ 25.97
Minimum [Member]
Equity Incentive Plans [Abstract]
Vesting period	3 years
Cliff vesting period	1 year
Maximum [Member]
Equity Incentive Plans [Abstract]
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		9 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Stock-Based Compensation Expense [Abstract]
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements	$ 13		$ 13
Weighted average period to recognize stock-based compensation expense			2 years 7 months 6 days
Selling, General and Administrative Expenses [Member]
Stock-Based Compensation Expense [Abstract]
Compensation expense	$ 1.9	$ 1.7	$ 5.9	$ 5

Transactions with Related Par33

Transactions with Related Parties (Details) $ in Thousands	9 Months Ended
	Oct. 28, 2017USD ($)Lease	Oct. 29, 2016USD ($)
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	$ 1,000	$ 900
Use of Airplane [Member]
Transactions with Related Parties [Abstract]
Payments to related parties	$ 35	$ 100

Subsequent Event (Details)

Subsequent Event (Details) - Term Loan Facility [Member] - USD ($) $ in Millions	Nov. 21, 2017	Oct. 28, 2017
Debt Obligations and Financing Arrangements [Abstract]
Repayment of debt		$ 65
Subsequent Event [Member]
Debt Obligations and Financing Arrangements [Abstract]
Repayment of debt	$ 30