Investing.com -- Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) reported first quarter results that exceeded earnings expectations and raised its full-year earnings outlook, sending shares up 5.4% premarket.

The discount retailer posted adjusted earnings per share of $0.91 for the first quarter ended May 2, beating the analyst consensus estimate of $0.87. However, revenue of $658.9 million came in slightly below the $662.3 million consensus, though it increased 14% from $576.8 million in the same quarter last year.

The company raised its fiscal 2026 adjusted EPS guidance to a range of $4.45 to $4.55, up from the previous range of $4.40 to $4.50. The midpoint of $4.50 is an increase from the prior midpoint of $4.45.

Comparable store sales rose 1.7% in the quarter, driven primarily by an increase in basket size. Gross margin expanded 80 basis points to 41.9%, exceeding expectations due to lower supply chain costs and a modest increase in merchandise margin. The company opened 27 new stores during the quarter and ended with 672 stores across 35 states, representing 15% growth.

"We delivered strong earnings growth driven by solid top line results and unit growth, robust margins, and disciplined expense control," said Eric van der Valk, President and Chief Executive Officer. "These results underscore the durability of our business model, the strength of our value proposition, and our ability to execute through a challenging consumer backdrop."

Ollie's Army loyalty membership grew 13% to 17.5 million members. The company returned $53.4 million to shareholders through share repurchases in the first quarter, buying back 542,486 shares. The company increased its planned share repurchases for fiscal 2026 to approximately $125 million from $100 million previously.