Ollie’s Bargain Outlet Holdings finished its latest complete fiscal year with a solid finish, beating Wall Street estimates on sales and earnings.
Net income totaled $53.1 million, or 85 cents per diluted share, versus $44.7 million, or 71 cents per diluted share, in the year-previous quarter, the company noted. Ollie’s adjusted net income was $52.4 million, or 84 cents per diluted share, versus $43.9 million, or 69 cents per diluted share, in the year-before period.
A Zacks Investment Research analyst consensus estimate called for earnings per adjusted diluted share of 80 cents and total sales of $543 million.
Ollie’s reported that total net sales advanced 9.7% to $549.8 million as comparable store sales increased 3% in the quarter year over year. Operating income increased 17.8% to $67.7 million while adjusted operating income increased 16.5% to $66.8 million versus the year-earlier quarter. The company opened five stores in the quarter, ending the period with 468 stores in 29 states,
For the full fiscal year, net income totaled $102.8 million, or $1.64 per diluted share, versus $157.5 million, or $2.43 per diluted share, in the year previous, the company maintained. Ollie’s adjusted net income was $101.8 million, or $1.62 per diluted share, versus $152.9 million, or $2.36 per diluted share, in the year before.
Ollie’s stated that total net sales advanced 4.2% to $1.83 billion as comps decreased 3% in the quarter year over year. Operating income decreased 36% to $130.9 million while adjusted operating income decreased 36.3% to $130 million.
The company opened 40 stores and closed three in fiscal 2022.
“We are pleased with our fourth quarter performance, which reflects an improvement in our transaction trends and a 3% increase in comparable store sales,” said John Swygert, Ollie’s president and CEO. “Our team executed well in a highly promotional environment and delivered a 110 basis point increase in gross margin compared to last year. For 2023, we are focused on offering great deals, expanding operating margins and growing our store base, all of which will position us to deliver consistent, long-term growth for our shareholders… Our deal pipeline is strong, and we are excited about the opportunities ahead of us.”
