BofA update shows where active managers are putting money
Investing.com -- Ollie’s Bargain Outlet Holdings, Inc. reported second-quarter results that exceeded analyst expectations, with the discount retailer raising its full-year outlook as consumers responded strongly to its merchandise offerings. Shares jumped 4.1% following the announcement.
The company reported adjusted earnings per share of $0.99, beating the analyst consensus of $0.93, while revenue reached $679.56 million, surpassing expectations of $662.22 million. Revenue increased 17.5% compared to the same quarter last year, driven by new store openings and a 5.0% rise in comparable store sales.
"We had a very strong second quarter and are operating with the wind in our sails," said Eric van der Valk, President and Chief Executive Officer. "Consumers responded to our compelling assortment of bargains, especially in our consumer staples and seasonal categories."
Ollie’s opened 29 new stores during the quarter, ending with 613 locations across 34 states, representing a 16.8% increase YoY. The company’s loyalty program, Ollie’s Army, grew 10.6% to 16.1 million members.
Gross margin improved by 200 basis points to 39.9%, primarily due to lower supply chain costs and higher merchandise margin. Operating margin increased 80 basis points to 11.3%.
Looking ahead, Ollie’s raised its fiscal 2025 guidance, now projecting net sales of $2.631 billion to $2.644 billion, up from its previous forecast of $2.579 billion to $2.599 billion. The company also increased its comparable store sales growth outlook to 3.0%-3.5% from 1.4%-2.2% previously.
Adjusted earnings per share guidance was raised to $3.76-$3.84, compared to the prior range of $3.65-$3.75. The company now plans to open 85 new stores this year, up from its previous target of 75 locations.