Ollie's Bargain Outlet (NASDAQ:OLLI) shares rose more than 2% premarket after the discount retailer boosted its full-year outlook.
OLLI reported its Q2 earnings, disclosing EPS of $0.67, exceeding the analyst estimate by $0.06. The company's revenue for the quarter amounted to $514.5 million, surpassing the consensus estimate of $498.65M.
In terms of comparable sales, Ollie's Bargain Outlet experienced growth of +7.9%, which significantly surpassed the estimate of +3.1%.
The company's gross margin was reported at 38.2%, in line with the consensus but a notable improvement compared to the 31.7% recorded in the same period of the previous year.
“Given the better than expected performance in the second quarter and continued momentum in our business, we are raising our full-year guidance and remain confident in our ability to return to our long-term algorithm of double-digit sales growth, 40% gross margin, and double-digit EBITDA growth,” said John Swygert, president and chief executive officer.
OLLI anticipates an FY EPS ranging from $2.65 to $2.74, which is higher than the consensus estimate of $2.62. It previously saw $2.56-2.65.
In terms of revenue, Ollie's Bargain Outlet projects a range of $2.08 billion to $2.09B for the fiscal year, exceeding the consensus estimate of $2.06B, and up from the prior forecast of $2.05B-$2.06B.
The company's outlook for comparable sales in FY2024 is +4% to +4.5%, which is an upgrade from the previous projection of +2% to +2.8%. This outlook also surpasses the estimated +2.8% comparable sales growth.