Discount Retailer Ollie's Bargain Outlet Reports Mixed Q4 Earnings: Details

Ollie’s Bargain Outlet Holdings Inc OLLI reported fourth-quarter FY23 sales growth of 18% year-on-year to $648.9 million, missing the analyst consensus estimate of $649.378 million.

Comparable store sales increased 3.9% compared to a 3% increase last year.

Gross profit climbed 27.4% Y/Y to $263 million, with the margin expanding 290 basis points to 40.5%.

Operating margin expanded 270 basis points to 15%, and operating income for the quarter rose 44.3% to $97.7 million.

Ollie’s held $353.2 million in cash and equivalents as of February 3, 2024. Cash provided by operating activities totaled $143.6 million.

Inventories at the end of FY23 increased 7.5% to $505.8 million

Adjusted EBITDA of $110.6 million gained 43.2% Y/Y, and the margin increased 300 basis points to 17%.

Adjusted EPS of $1.23 beat the analyst consensus of $1.16.

Outlook: Ollie’s sees FY24 adjusted EPS of $3.10 – $3.20, against the consensus of $3.21.

The company expects FY24 sales of $2.248 billion – $2.273 billion versus the Street view of $2.294 billion.

The company sees comparable store sales to increase 1% – 2%.

Price Action: OLLI shares are trading lower by 0.70% at $74.82 on the last check Wednesday.