Ollie's Bargain (OLLI) Q3 Earnings Top Estimates, Stock Gains
Zacks Investment Research | Dec 10, 2019 08:46PM ET
Shares of Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) surged roughly 11% during the after-market trading session on Dec 10. The stock got a boost following the company’s better-than-expected third-quarter fiscal 2019 results, wherein both the top and bottom lines improved from the year-ago period. Margins also expanded on a year-over-year basis. However, the company continued to witness soft comparable-store sales performance. Nonetheless, management reaffirmed fiscal year sales and earnings view.
Management is optimistic about its business model of “buying cheap and selling cheap,” and remains focused on improving store productivity and expanding of customer reward program, Ollie's Army.
Quarterly Results
Ollie’s Bargain delivered adjusted earnings of 41 cents a share that beat the Zacks Consensus Estimate by a couple of cents and surged 28.1% from the year-ago quarter’s figure of 32 cents. This year-over-year increase can be attributed to higher net sales and better expense management.
Notably, net sales improved 15.3% to $327 million and came ahead of the consensus mark of $322.8 million. The increase in the top line can be attributed to robust new store performance from the 42 stores opened in fiscal 2019, which includes 14 former Toys R Us locations.
However, comparable-store sales decreased 1.4% during the quarter under review, following a decline of 1.7% in the preceding period. We note that the reported figure compared unfavorably with the prior-year quarter’s increase of 4.6%.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
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