Ollie’s recorded a third-quarter earnings gain that topped Wall Street estimates, but the company missed on revenue as comparable sales declined.
Ollie’s also confirmed a planned chief executive officer transition from John Swygert to Eric van der Valk is on track to occur early next year.
Net income grew to $35.9 million, or 58 cents per diluted share, versus $31.8 million, or 51 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, net income was $35.7 million, or 58 cents per diluted share, versus $31.6 million, or 51 cents per diluted share, in the year-prior period, the company stated.
Adjusted diluted earnings per share beat a Zacks Investment estimate by a penny but missed a revenue forecast of $518.6 million.
Comparable store sales decreased 0.5% year over year, while net sales increased 7.8% to $517.4 million. Operating income increased 14% to $44.5 million year over year in the period.
Ollie’s opened 24 new and closed three stores in the quarter. The moves included two permanent closures and one temporary closure related to Hurricane Helene. Ollie’s ended the period with 546 stores in 31 states, a year-over-year store count advance of 8.1%.
Swygert said, “We had another great quarter and are pleased with our results. We delivered strong earnings on higher sales, gross margin, and disciplined expense control. We also took advantage of a number of real estate opportunities that strengthened our new store pipeline and enhanced our competitive positioning for the future.”
He added, “The transition of the CEO role and responsibilities is progressing as planned. Eric van der Valk will become CEO at the beginning of fiscal 2025. I have had an amazing 20-plus-year career at Ollie’s and would like to thank each and every team member that has been part of our family. While proud of what we have accomplished, I am even more excited about our growth potential and positioning going forward. Our value proposition is clear, our deal flow is strong, and our ability to execute is as good as it’s ever been.”
