Ollie's Bargain Outlet Surpasses Q3 Earnings Expectations with Robust Growth
Harrisburg, Wednesday, 11 December 2024.
Ollie’s Bargain Outlet reported a net income of $35.9 million and earnings per share of 58 cents, exceeding analyst expectations and highlighting strong financial performance and growth strategies.
Strong Financial Performance
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) demonstrated impressive financial results for its third quarter ended November 2, 2024. The company’s earnings per share of 58 cents surpassed Wall Street’s expectation of 57 cents [3][5]. Total sales reached $517.43 million, showing a significant increase of 7.8% compared to the previous year [3]. The company’s net income of $35.9 million represented a robust 12.8% increase [3].
Operational Highlights and Margin Improvements
The retailer’s gross profit saw a notable increase of 10.5% to $214.5 million, with gross margin expanding by 100 basis points to 41.4%, primarily driven by improved supply chain efficiencies [3]. Operating income showed strong growth, rising by 14.0% to $44.5 million, while the operating margin improved by 50 basis points to 8.6% [3]. The company’s adjusted EBITDA experienced a substantial increase of 17.0% to $59.8 million [3].
Expansion and Strategic Growth
During the quarter, Ollie’s continued its expansion strategy by opening 24 new stores while closing three locations, including two permanent closures and one temporary closure due to Hurricane Helene [3]. The company now operates 546 stores across 31 states, representing an 8.1% year-over-year increase in store count [3]. The company maintains a strong financial position with cash and cash equivalents plus short-term investments of $303.9 million [3].
Leadership Transition and Future Outlook
Ollie’s is preparing for a leadership transition, with Eric van der Valk set to assume the CEO role at the beginning of fiscal 2025 [3]. Looking ahead, the company has updated its fiscal 2024 guidance, projecting total sales between $2.27 billion and $2.28 billion [3][5]. Management remains confident in maintaining its adjusted earnings per share forecast of $3.22 to $3.30 [3][5].