Free Post Earnings Research Report: Ollie's Bargain Outlet Holdings’ Quarterly Sales 25.9%; Adjusted EPS Advanced 31%

LONDON, UK / ACCESSWIRE / April 27, 2018 / Active-Investors.com has just released a free earnings report on Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (“Ollie's”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=OLLI. Ollie's reported its fourth quarter and fiscal 2017 operating and financial results on April 03, 2018. The retailer surpassed top- and bottom-line expectations. The Company provided guidance for fiscal year 2019. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ollie's Bargain Outlet Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Ollie's net sales in the fourth quarter of fiscal 2017 increased 25.9% to $356.7 million from net sales of $283.4 million in Q4 2016, driven by a 14.5% increase in the number of stores, a 4.4% increase in comparable store sales, and $16.5 million of sales in the 53rd week. The Company's reported numbers beat analysts' estimates $349.9 million.

During Q4 2017, Ollie's gross profit increased 23.9% to $140.5 million from $113.4 million in Q4 2016. The Company's gross margin decreased 60 basis points to 39.4% in the reported quarter from 40.0% in the prior year same quarter. The decrease in gross margin was driven by increased supply chain costs as a percentage of net sales.

For Q4 2017, Ollie's operating income surged 34.0% to $54.4 million from $40.6 million in Q4 2016. The Company's operating margin increased 100 basis points to 15.3% in the reported quarter versus 14.3% in the year earlier comparable quarter.

Ollie's net income increased 186.9% to $70.1 million, or $1.07 per diluted share, in Q4 2017 from $24.4 million, or $0.39 per diluted share, in Q4 2016. The Company's reported quarter earnings included a $0.50 benefit related to the Tax Cuts and Jobs Act of 2017 (Tax Act) and a $0.07 benefit due to the accounting change for stock-based compensation.

For Q4 2017, Ollie's adjusted net income excluding these benefits and the after-tax loss on extinguishment of debt, increased 31% to $0.51 per diluted share compared to $0.39 per diluted share in Q4 2016. The Company's earnings beat Wall Street's estimates of $0.49 per share.

Ollie's adjusted EBITDA surged 31.0% to $59.2 million, or 16.6% of net sales, in Q4 2017 from $45.2 million, or 15.9% of net sales, in Q4 2016.

Ollie's net sales increased 21.0% to $1.08 billion in fiscal 2017 from net sales of $890.3 million in FY16. The increase in net sales was driven by a 14.5% increase in store count, a 3.3% increase in comparable store sales, and $16.5 million of sales in the 53rd week.

Ollie's net income totaled $127.6 million, or $1.96 per diluted share, in FY17 compared to $59.8 million, or $0.96 per diluted share, in FY16. The Company's earnings included a $0.50 benefit related to the 2017 Tax Act and a $0.22 benefit due to the accounting change for stock-based compensation for FY17.

For FY17, Ollie's adjusted net income surged 33.4% to $81.1 million, or $1.25 per diluted share, from $60.8 million, or $0.97 per diluted share, in FY16.

Store Update

Ollie's opened 3 stores in Q4 2017 and 34 stores during FY17 and ended the year with 268 stores.

Balance Sheet and Cash Flow

Ollie's cash balance as of the end of fiscal 2017 was $39.2 million compared to $98.7 million as of the end of FY16. The Company had no borrowings under its $100.0 million revolving credit facility and $96.0 million of availability under the facility as of the end of FY17. Ollie's paid down $146.3 million in term loan debt during FY17 and ended the year with total borrowings of $49.2 million compared to $195.3 million as of the end of FY16.

Ollie's inventory as of the end of FY17 increased 21.5% to $255.2 million compared to $210.1 million as of the end of FY16, primarily due to new store growth and timing of deal flow. The Company's capital expenditures totaled $19.3 million in FY17 compared to $16.4 million in FY16.

Outlook

For the fiscal year ending February 02, 2019, Ollie's is forecasting total net sales of $1.20 billion to $1.21 billion, an increase of 13.2% to 14.1% on a y-o-y basis. The Company's comparable store sales growth of 1.0% to 2.0%. Ollie's is planning to open of 36 to 38 new stores and no planned closures.

For FY19, Ollie's is estimating operating income of $149.0 million to $152.0 million and adjusted net income in the range of $109.0 million to $112.0 million, excluding income tax benefits due to the accounting change for stock-based compensation. Ollie's is projecting adjusted net income in the band of $1.65 to $1.69 per share.

Stock Performance Snapshot

April 26, 2018 - At Thursday's closing bell, Ollie's Bargain Outlet's stock rose 2.13%, ending the trading session at $62.20.

Volume traded for the day: 484.47 thousand shares.

Stock performance in the last month – up 6.42%; previous three-month period – up 9.12%; past twelve-month period – up 61.77%; and year-to-date – up 16.81%

After yesterday's close, Ollie's Bargain Outlet's market cap was at $3.93 billion.

Price to Earnings (P/E) ratio was at 31.77.

The stock is part of the Services sector, categorized under the Discount, Variety Stores industry. This sector was up 1.0% at the end of the session.

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