Ollie’s Bargain Outlet Holdings raised its fiscal year sales outlook as the company’s first quarter results came in better than anticipated.
Net earnings were $47.6 million, or 77 cents per diluted share, versus $46.3 million, or 75 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, Ollie’s reported net income was $46.1 million, or 75 cents per diluted share, versus $45.2 million, or 73 cents per diluted share, in the year-before period.
An analyst consensus estimate published by Zacks Investment Research called for earnings per adjusted diluted share of 70 cents and revenues of $564.7 million.
Comparable store sales gained 2.6% in the quarter year over year, Ollie’s noted, driven by an increase in transactions. Net sales were $576.8 million versus $508.8 million in the year-before quarter, the company stated. Operating income was $56.2 million versus $56.5 million in the year-previous period.
Ollie’s maintained its fiscal year outlook for adjusted net income but lifted it for sales, which it now puts as $2.58 billion to $2.6 billion, up from $2.56 billion to $2.59 billion, and comps, which it now puts at 1.4% to 2.2%, up from 1% to 2%.
Among the first quarter highlights was the company’s opening of 25 new stores, including 18 former Big Lots locations acquired through a bankruptcy auction, Ollie’s pointed out. The company ended the period with 584 stores in 32 states, up 13.2% year over year.
In announcing the first quarter results, Eric van der Valk, Ollie’s president and CEO, said, “We had a strong first quarter, highlighted by accelerated store growth and better than expected sales and earnings. As consumers seek out value and the current environment weighs on retailers and suppliers, we believe we are well-positioned to benefit and continue to serve our customers with amazing deals. Our unique operating model gives us a ton of flexibility when it comes to navigating a choppy environment, and this puts us in a very strong position versus most retailers.”
