Ollie's Bargain Outlet Down After Q4 Results Miss Revenue Estimate, Weak Margins; Provides FY22 Guidance

Ollie's Bargain Outlet Holdings Inc OLLI reported a fourth-quarter sales decline of 2.8% year-over-year to $501.1 million, missing the consensus of $513.13 million.
Comparable store sales decreased 10.5% from the prior year's increase of 8.8%. Comparable store sales decreased 2% compared with the fourth quarter of fiscal 2019.
OLLI opened five new stores, ending the quarter with 431 stores in 29 states.
The gross margin declined by 320 bps to 36.5% due to increased supply chain costs.
Adjusted operating income decreased 32.1% Y/Y to $57.3 million and adjusted operating margin contracted by 500 bps to 11.4%.
Adjusted EPS was $0.69 compared to $0.97 in 4Q20, beating the consensus of $0.66.
Adjusted EBITDA decreased by 28.2% Y/Y to $66.1 million, and the margin contracted 470 bps to 13.2%.
Net cash provided by operating activities for FY21 was $45.03 million, compared to $361.25 million in FY20. Ollie's cash and cash equivalents balance as of FY21 was $247 million.
Inventories as of the end of FY21 increased 32.1% to $467.3 million.
1Q22 Outlook: OLLI sees total sales of $417 million to $422 million and Adjusted EPS of $0.31 to $0.33.
It expects comparable store sales to range from down 15% to down 14%, a Gross margin of ~35.8%, and Operating income of $26.5 million to $28.0 million.
FY22 Outlook: OLLI expects net sales of $1.908 billion to $1.926 billion, versus a consensus of $1.76 billion, and Adjusted EPS of $2.15 to $2.22, versus a consensus of $2.33.
It expects comparable-store sales ranging from flat to an increase of 1%; and opening of 46 to 48 new stores, including two relocations.
The company sees a gross margin of ~37.2%, Operating income of $182 million to $187 million, and Capital expenditures of $53 million to $58 million.
Price Action: OLLI shares are trading lower by 2.02% at $39.85 during the post-market session on Wednesday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga