Ollie’s ended the quarter with 476 stores in 29 states.
Ollie’s Bargain Outlet Holdings reported a solid first quarter as its deals attracted value-seeking consumers — including higher-income and younger ones.
The close-out retailer opened nine stores during the quarter, for a total of 476 locations in 29 states. It is on track to open 44 stores for the year, with a long-term target of at least 1,050 stores.
Ollie’s net income increased to $31.0 million or $0.50 per share, in the quarter ended April 29, up from $12.5 million, or $0.20 per diluted share, in the prior year. Adjusted earnings were $0.49 a share, beating analysts estimates by one penny.
Total net sales increased 12.9% to $459.2 million, ahead of estimates of $451.4 million. Comparable store sales increased 4.5% from the prior year decrease of 17.3%.
“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,” statedJohn Swygert, president and CEO. “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.
Looking ahead, Swygert said that Ollie’s deal flow remains robust and the company is well positioned in the current environment as consumers are increasingly looking for value.
“As a result of our strong first quarter performance and continued momentum in the business, we are raising our outlook for fiscal year 2023,” he added.
Ollie’s raised its fiscal 2024 outlook for adjusted profit to $2.56 to $2.65 from its previous range of $2.49 to $2.58. Net sales are expected to range from $2.052 to $2.067 billion, up from its previous estimate of 2.036 to $2.058 billion.
Ollie’s Bargain Outlet was founded in 1982. It offers an extensive variety of heavily discounted brand-name merchandise across departments that include food, books, housewares, toys, electronics, domestics, clothing, furniture, health and beauty, flooring and seasonal items.