Ollie's Bargain Outlet Hldg (OLLI)

Gross profit margin

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Gross profit	US$ in thousands	832,365	656,094	681,246	723,366	555,589
Revenue	US$ in thousands	2,102,700	1,827,080	1,752,950	1,808,570	1,407,980
Gross profit margin		39.59%	35.91%	38.86%	40.00%	39.46%

February 3, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $832,365K ÷ $2,102,700K
= 39.59%

The gross profit margin of Ollie's Bargain Outlet Holding has fluctuated over the past five years, ranging from 35.91% to 40.00%. In the most recent fiscal year ending on February 3, 2024, the gross profit margin stood at 39.59%. This indicates that for every dollar of revenue generated, the company retained approximately 39.59 cents as gross profit after accounting for the cost of goods sold.

The slight increase in the gross profit margin from the prior year suggests that Ollie's Bargain Outlet Holding may have effectively managed its cost of goods sold relative to its revenue. However, compared to the gross profit margins in the two preceding years (38.86% in 2022 and 40.00% in 2021), the current margin is somewhat lower.

It is essential for the company to further assess its pricing strategies, inventory management, and sourcing practices to ensure sustained profitability and efficient operations. Additionally, monitoring industry benchmarks and trends can provide valuable insights into optimizing the gross profit margin to enhance overall financial performance.