HARRISBURG - Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: NASDAQ:OLLI) reported a robust increase in fourth-quarter earnings, surpassing analyst expectations with an adjusted EPS of $1.23, $0.08 higher than the consensus of $1.15. However, the discount retailer's revenue for the quarter slightly missed the mark at $648.9 million, just shy of the anticipated $649.43 million.
Despite a strong finish to the fiscal year, Ollie's provided a fiscal 2024 earnings outlook that trails analyst estimates. The company forecasts an EPS range of $3.10 to $3.20, below the consensus of $3.21. Additionally, the projected revenue of $2.248 to $2.273 billion for FY2024 also falls short of the expected $2.29 billion.
Following the earnings release and guidance, Ollie's stock experienced a modest decline of 0.93%. The market's reaction reflects concerns over the company's revenue miss and forward-looking guidance that did not meet analyst consensus.
In the fourth quarter, Ollie's achieved a significant 18.0% increase in net sales year-over-year (YoY) and a comparable store sales growth of 3.9%. The company also highlighted an impressive 44.7% rise in earnings per share to $1.23 and a 46.4% increase in adjusted EPS to the same amount. These results were driven by strategic store openings, with 7 new stores launched, ending the quarter with 512 stores across 30 states—a 9.4% increase in store count YoY.
John Swygert, President and Chief Executive Officer, expressed satisfaction with the company's performance, noting the opening of their 500th store, expansion into a new state, and the addition of a record 3.6 million new members to Ollie's Army loyalty program. He also mentioned a positive trend for Ollie's stemming from demographic shifts, with a third-party real estate study suggesting the potential for up to 1,300 stores nationwide.
For the full fiscal year 2023, Ollie's reported a 15.1% increase in net sales to $2.103 billion, excluding the impact of the 53rd week. The company's growth was further emphasized by a 5.7% increase in comparable store sales and a substantial 74.0% increase in operating income to $227.8 million.
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