Ollie's Bargain Outlet Stock Plunges On Missing Q2 Estimates

Ollie's Bargain Outlet Holdings Inc OLLI reported a second-quarter FY21 sales decline of 21.4% year-on-year, to $415.88 million, missing the analyst consensus of $435.75 million.
Comparable store sales decreased 28.0% in Q2 versus 43.3% increase last year, resulting in a two-year stack of positive 15.3%.
Gross profit fell 21.2% Y/Y to $163.0 million, with the margin expanding 10 basis points to 39.2%.
The operating margin decreased 640 basis points to 11%, and operating income for the quarter fell 50.3% to $45.7 million.
Ollie's held $444.3 million in cash and equivalents as of July 31, 2021.
Inventories at the end of Q2 increased 14.2% to $373.5 million.
Cash provided by operating activities totaled $1.7 million.
Adjusted EBITDA of $54.1 million declined 45.6% Y/Y. Adjusted EBITDA margin decreased 580 basis points to 13.0%.
EPS of $0.52 missed the analyst consensus of $0.55.
Outlook: Ollie's sees Q3 comparable stores sales growth of 5% to 7% on a two-year stack basis.
Price Action: OLLI shares are trading lower by 13.83% at $66.99 in premarket on the last check Friday.

Earnings Calendar