Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) Q3 2017 Earnings Conference Call Transcript
Dec 06, 2017 • 04:30 pm ET
Good afternoon, and welcome to the Ollie's Bargain Outlet conference call to discuss the financial results for the third quarter of fiscal 2017. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from Ollie's. And, as a reminder, this call is being recorded.
On the call today from management are Mark Butler, Chairman, President, and CEO; John Swygert, EVP and CFO; and Jay Stasz, SVP of Finance and CAO. I'll turn the call over to Mr. Stasz to get started. Please go ahead, sir.
Thank you, and hello everyone. A press release covering the company's third-quarter fiscal 2017 financial results was issued this afternoon, and a copy of that press release can be found in the Investor Relations section on the company's website.
(Forward-Looking Cautionary Statements). We will be referring to certain non-GAAP financial measures on today's call, such as adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per diluted share that we believe may be important to investors to assess our operating performance. Reconciliations of these non-GAAP financial measures to the most closely comparable GAAP financial measures are included in our earnings release.
I will now turn the call over to Mark.
Thanks, Jay, and hello to everyone, and thanks for being with us on the call today. We had another strong quarter, and we are very excited about our results and the continued momentum in our business. Strong deal flow, great new store performance, and tight expense control drove our record results for the third quarter. Consistency and execution are two of our hallmarks that are critical to our success, and after 35 years are things that we will not change.
For the quarter, we delivered record top and bottom line results, with an 18% increase in sales, a 31% increase in adjusted net income. Comparable store sales increased 2.1% against a 1.8% increase in the third quarter of last year and a 5% increase on a two-year stack basis. Our sales strength was once again broad-based, with nearly half of our departments comping positive.
Some of our best performing categories were health and beauty aids, housewares, toys, furniture, and bed and bath. We continue to grow our vendor relationships with our increased size and scale, and we believe we're well-positioned to capitalize on the many buying opportunities in the marketplace. As we build these stronger direct relationships with major manufacturers, we're able to offer our customers what they want, brand name merchandise at drastically reduced prices. The best news is that we continue to see very strong deal flow.
Our new stores performed above our expectations during the quarter. We opened 15 locations during the third quarter, and since quarter end, we've opened another three, for a total of 34 new stores in fiscal 2017. We continue to see