Ollie's Bargain Outlet keeps growth streak alive

The CEO of Ollie’s Bargain Outlet says the company’s recent IPO contributed to another strong quarter of merchandise margin and sales growth.



For the third quarter ended Oct. 31, the value retailer said same store sales increased 3.2%. Total net sales increased 16.4% to $174.6 million. Net income increased 39.4% to $6.8 million, or $0.11 per diluted share.



"Once again, the increase in comparable store sales was across the majority of our merchandise categories and all of our geographic regions. With the business continuing to grow and the improved visibility from the IPO, we have seen better access to merchandise,” said Mark Butler, chairman, president and CEO. “This is allowing our buying team to be more selective in their purchases and we can offer our customers even greater value every time they step into one of our stores. We believe our merchandise selection has led to increased traffic, ticket, and merchandise margin, therefore driving our top and bottom lines."



The company opened 13 new stores, ending the quarter with 200 stores in 17 states. This represents an increase of 15.6% in total number of stores from the third quarter of fiscal 2014.



Looking ahead, Ollie's currently estimates the following results for the fiscal year ending Jan. 30:



• Total net sales to increase approximately 17% to $745 million;

• Same-store sales growth of approximately 4%;

• The opening of 28 new stores (of which we have opened 27 new stores to date) and closure of one store. This represents an increase of 15.3% in total number of stores from fiscal 2014;

• Operating income to increase approximately 19% to $75 million, or 10% of net sales; and

• Net income to increase approximately 30% to $35 million, or 4.5% of net sales.