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Ollie’s Bargain Outlet topped first-quarter estimates on Tuesday
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Ollie’s Bargain Outlet reported better first-quarter sales and profits than analysts had expected on Tuesday.
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The retailer’s CEO said the company is “well positioned to benefit” as consumers look for value.
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In the first quarter, Ollie’s converted 18 of the 40 former Big Lots locations it acquired in a bankruptcy auction.
Discount retailer Ollie’s Bargain Outlet Holdings (OLLI) beat estimates for the first quarter on Tuesday and lifted its sales projections for the full year.
The retailer said Tuesday it generated $576.77 million in revenue for the quarter along with $0.75 in adjusted earnings per share, each better than analysts had expected. Comparable store sales also rose by 2.6%, a larger gain than the 1.54% analyst consensus compiled by Visible Alpha.
“As consumers seek out value and the current environment weighs on retailers and suppliers, we believe we are well positioned to benefit,” CEO Eric van der Valk said.
The company affirmed its full-year adjusted EPS outlook of $3.65 to $3.75, while lifting its sales outlook to a range of $2.58 billion to $2.60 billion, up from $2.56 billion to $2.59 billion previously.
Ollie’s opened 25 locations in the quarter, 18 of which were former Big Lots locations that the company acquired through auction after Big Lots went bankrupt last year. Last quarter, Ollie’s said it acquired 40 total locations through the auction, putting its target at opening 75 total locations this year.
Despite beating on the top and bottom lines, shares of Ollie’s were down slightly on Tuesday.
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