Ollie’s Bargain Outlet (NASDAQ:OLLI) saw its shares surge over 11% intra-day today after reporting mixed fourth-quarter results, with earnings meeting expectations but revenue falling short.
For the quarter, adjusted earnings per share came in at $1.19, aligning with analyst forecasts. Total net sales rose 2.8% year-over-year to $667.1 million, but missed the consensus estimate of $674.64 million.
Comparable store sales also increased 2.8%, driven by growth in both customer transactions and basket size. The company continued its expansion efforts, opening 13 new stores and ending the quarter with 559 locations across 31 states, marking a 9.2% increase from the prior year.
Looking ahead, Ollie’s is ramping up its store expansion strategy, planning to open 75 new locations in fiscal 2025, up from 50 in 2024. The company forecasts full-year net sales between $2.564 billion and $2.586 billion, with comparable store sales growth of 1% to 2%. Adjusted earnings per share are expected to range between $3.65 and $3.75.
On the profitability side, gross margin improved by 20 basis points to 40.7%, thanks to lower supply chain costs. However, selling, general, and administrative expenses increased to 25.5% of sales, compared to 24.1% a year ago, reflecting higher operating costs.