Shares in Ollies Bargain Outlet (NASDAQ:OLLI) are moving higher in early Wednesday trading after the chain of discount closeout retailers hiked its full-year forecast.
The company said its net sales rose 13% year-over-year to $459.2 million for its first quarter, ahead of the consensus at $451.05M. Comparable sales jumped 4.5%, easily ahead of the average analyst consensus that was looking for 2.6% growth.
"We are pleased with our first quarter performance, which exceeded our expectations and was driven by strong comparable store sales, new store productivity, and margin expansion," said John Swygert, president and chief executive officer.
"Customers are responding to our compelling deals, resulting in accelerating transaction trends and we are encouraged to see our product offerings appealing to a wider customer base that includes more higher income and younger-age shoppers.”
Earnings per share came in at $0.49, beating the average analyst estimate of $0.47. The company’s gross margin expanded as much as 410 basis points YoY to 38.9%, but missing the consensus of 39.1%.
Shares were also boosted by the fact that inventory levels decreased by 3.7% YoY.
For FY24, adjusted EPS is now seen in the range of $2.56-$2.65, an upgrade compared to the previous forecast of $2.49-$2.58, and ahead of the consensus at $2.55. Revenue is now expected at $2.06B, above the previous forecast for $2.05B and the consensus of $2.04B.
Comparable sales are expected to increase by 2.4% (up or down 40 basis points), higher than the prior forecast of +1.5% and the average analyst estimate of 1.7%.