Ollie’s Bargain Outlet Holdings posted earnings and revenues that topped a Wall Street estimate, citing strong closeout deal flow from suppliers and growing demand from value-conscious consumers.
Net income advanced to $31.8 million, or 51 cents per diluted share, versus $23.1 million, or 37 cents per diluted share, in the year earlier quarter. Adjusted for one-time events, net income gained to $31.6 million, or 51 cents per diluted share, versus $23 million, or 37 cents per diluted share, in the year-prior period, Ollie’s stated.
Adjusted earnings per share beat a Zacks Investment Research earnings estimate of 45 cents and a revenue estimate by 1.94%.
Comparable-store sales increased 7% while total sales for the quarter increased 14.8% to $480.1 million from the year-earlier previous period, the company reported. Operating income increased 32.3% to $39.1 million.
Ollie’s opened 23 new stores in the quarter, ending the period with 505 in 30 states, a year-over-year increase in store count of 9.1%.
In announcing the financial results, John Swygert, Ollie’s president and CEO, said, “We had another strong quarter and are pleased with the positive trends in our business. Our third-quarter sales and margins came in ahead of our expectations, driven by strong deal flow, lower supply chain costs and continued execution throughout the organization. The closeout deal flow is very strong. Consumers remain under pressure and are looking for ways to save money on branded merchandise they need and want in their homes. Manufacturers are creating new and innovative products, changing packaging and sizes, and competing for retail shelf space, which is creating more closeout opportunities. Based on the strength of our third quarter results and current business trends, we are raising our sales and earnings guidance for the full year.”
