Investing.com – Ollie's Bargain stock (NASDAQ:OLLI) slumped 7% Friday as most metrices deteriorated at the discount retailer in the second quarter and the company stuck to its pandemic-time practice of not providing guidance.
Total net sales decreased 21% year-on-year to $415.9 million. Comparable store sales fell 28% compared to the prior year increase of 43%.
Adjusted net income fell to $34 million, less than half of last year’s $68.9 million. Earnings per share were 52 cents.
Both sales and earnings came below analysts’ expectations.
For the third quarter, the company expects comparable stores sales growth of 5% to 7% on a two-year stack basis.
As a percentage of net sales, pre-opening expenses increased 30 basis points to 0.6% in the second quarter from 0.3% in the same quarter a year ago. One basis point is hundredth of a percent.
Inventories rose of the end of the quarter as the company added new stores and also because sales fell.
The company closed the quarter with 416 stores in the U.S., 11 more than the end of first quarter.