Ollie's Bargain Outlet's fiscal third-quarter earnings exceeded Wall Street's expectations, even as the discount retailer adjusted its revenue outlook downward. The company now anticipates sales between $2.27 billion and $2.28 billion for the year, slightly lower than its previous forecast of $2.28 billion to $2.29 billion.
The average analyst estimate from FactSet predicts revenue of $2.28 billion for the current year. For comparable store sales, Ollie's expects a growth range of 2.7% to 3%, a reduction from the prior forecast of 3.2%. Chief Financial Officer Robert Helm indicated these revised figures result from unforeseen store closures, the timing of new store openings, and results from the third quarter during an earnings call.
The outlook for the fourth quarter remains largely unchanged, as the company reports a positive uptick in business. "We have seen a nice acceleration in business over the last several weeks, and we're pleased with our Black Friday weekend sales," Helm shared with analysts. He noted that the shortened selling season between Thanksgiving and Christmas might lead to a more intense shopping rush in mid- to late-December, supported by current trends.
Ollie's is prepared with attractive offers for customers heading into the holiday season. The company continues to forecast adjusted earnings per share between $3.22 and $3.3 for the fiscal year ending February 1, with the current consensus on FactSet estimating adjusted EPS of $3.27. On a positive note, Ollie's shares experienced a 13% increase during Tuesday's trading session.
During its third fiscal quarter, Ollie's adjusted earnings per share rose to $0.58, up from $0.51 the previous year, outperforming Street predictions of $0.57. Revenue climbed by 7.8% year over year, reaching $517.4 million for the quarter ending November 2, although it fell short of the $518.8 million analyst forecast on FactSet.
Comparable store sales recorded a 0.5% decline, while expectations were set for a 0.2% rise. The company successfully opened 24 new stores during the quarter, though it closed two locations permanently and one temporarily. Helm pointed out, "Demand for everyday consumer staples was robust throughout the quarter, with our top-performing categories including food, candy, housewares, and furniture." He also highlighted the growth in the younger customer demographic and the retention of higher-income customers, consistent with previous trends..