Ollie's Bargain Outlet Hldg (OLLI)

Pretax margin

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	242,485	133,883	204,383	277,778	172,733
Revenue	US$ in thousands	2,102,700	1,827,080	1,752,950	1,808,570	1,407,980
Pretax margin		11.53%	7.33%	11.66%	15.36%	12.27%

February 3, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $242,485K ÷ $2,102,700K
= 11.53%

Ollie's Bargain Outlet Hldg has shown fluctuations in its pretax margin over the past five years. The pretax margin for the fiscal year ending February 3, 2024, stands at 11.53%, marking an increase from the previous year's level of 7.33% recorded on January 28, 2023. This improvement suggests a more efficient management of expenses relative to revenue generation in the most recent fiscal year.

Comparing the current pretax margin to the levels of the preceding years, it is evident that Ollie's Bargain Outlet Hldg experienced a decline in profitability compared to the fiscal years ending January 29, 2022 (11.66%) and January 30, 2021 (15.36%). The robust pretax margins in those years indicate a higher level of profitability relative to the most recent fiscal year.

Furthermore, when comparing the pretax margin of February 3, 2024, to that of February 1, 2020 (12.27%), there is only a slight improvement in profitability. While the company has managed to maintain a relatively stable pretax margin over this five-year period, there seems to be a recent decline in profitability efficiency compared to the peak achieved in the fiscal year ending January 30, 2021.

Overall, the recent pretax margin of Ollie's Bargain Outlet Hldg indicates a moderate level of profitability, with a notable increase from the prior year but a decline when compared to certain historical levels. This metric suggests that the company may benefit from further cost management and revenue optimization strategies to enhance its overall financial performance in the coming years.