Ollie's Bargain Outlet Plummets After Q3 Miss, FY22 Outlook Cut

Shivani Kumaresan

December 7, 2022 at 8:48 AM·2 min read

Ollie's Bargain Outlet Holdings Inc (NASDAQ: OLLI) reported third-quarter FY22 sales growth of 9% year-on-year to $418.07 million, missing the consensus of $429.11 million. Comparable store sales increased 1.9% in Q3.
Gross profit climbed 7.9% Y/Y to $164.7 million, with the margin contracting 40 basis points to 39.4%.
Operating margin decreased 80 basis points to 7.1%, and operating income for the quarter fell 2.3% to $29.5 million.
Ollie's held $182.1 million in cash and equivalents as of October 29, 2022. Cash used in operating activities totaled $(3) million.
Inventories at the end of Q3 increased 11% to $523.7 million.
The company ended the quarter with 463 stores in 29 states, an 8.7% increase in store count.
Adjusted EBITDA of $39.5 million gained 4.1% Y/Y, and the margin decreased 50 basis points to 9.4%.
Adjusted EPS of $0.37 missed the analyst consensus of $0.41.
Outlook: Ollie's sees Q4 adjusted EPS of $0.78 - $0.83 versus the consensus of $0.95. It expects sales of $540 million - $550 million, below the consensus of $562.73 million.
OLLI expects FY22 adjusted EPS of $1.57 - $1.62 (prior view $1.74 - $1.79) against the Street view of $1.82.
It expects sales of $1.817 billion - $1.827 billion (prior view $1.843 billion - $1.861 billion) versus the consensus of $1.85 billion.
Price Action: OLLI shares are trading lower by 9.18% at $52.45 in premarket on the last check Wednesday.
Photo Via Wikimedia Commons

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