Ollie's Bargain Outlet (OLLI) shares rallied premarket Wednesday after topping third-quarter consensus earnings and revenue expectations and raising its full-year guidance.
The company posted Q3 EPS of $0.51, $0.06 better than the analysts' estimate of $0.45, with revenue for the quarter coming in at $480.1 million, increasing 14.8% YoY, and up compared to the consensus estimate of $469.11 million. Comparable store sales increased 7% from the prior year's increase of 1.9%.
OLLI's stock price is currently 3.6% above Tuesday's close, trading at $79 per share at the time of writing.
OLLI saw positive trends in its business during the quarter, with margins also ahead of expectations alongside sales, driven by strong deal flow, lower supply chain costs, and continued execution throughout the organization.
“The closeout deal flow is very strong," said John Swygert, OLLI's President and CEO. "Consumers remain under pressure and are looking for ways to save money on branded merchandise they need and want in their homes."
As a result of its third-quarter strength, the company now sees its FY2023 EPS from $2.77 to $2.83, up from the previous guidance of $2.65 to $2.74 per share. The new range is also above the consensus estimate of $2.73.
FY2023 revenue is seen between $2.097 billion and $2.104 billion, above the previous guidance range of $2.076 billion to $2.091 billion and up versus the consensus of $2.09 billion.