Ollie's Bargain Outlet (NASDAQ:OLLI) shares fell in pre-market trading despite the company reporting first-quarter revenue and earnings that beat analyst estimates.
The chain of discount closeout retailers reported a 13% rise in net sales to $459 million for the quarter ended April 29, 2023, with comparable store sales increasing by 4.5%. The consensus estimate was for net sales of $452 million.
It opened nine new stores and closed one, ending the quarter with 476 stores in 29 states, a year-over-year increase in store count of 8.4%.
Adjusted net income increased by 141% to $30.8 million, or $0.49 per diluted share, beating the Street’s estimate of $0.47.
“We are pleased with our first quarter performance, which exceeded our expectations and was driven by strong comparable store sales, new store productivity, and margin expansion,” President and CEO John Swygert said in a statement.
“Customers are responding to our compelling deals, resulting in accelerating transaction trends and we are encouraged to see our product offerings appealing to a wider customer base that includes more higher income and younger-age shoppers.”
As a result of its strong start, the company said it was raising its full-year guidance to net sales of $2.05 billion to $2.07 billion, from $2.04 billion to $2.06 billion.
It now expects net income per share in the range of $2.56 to $2.65, up from $2.49 to $2.58 previously.
“Our deal flow remains robust, and we believe that we are well positioned in the current environment as consumers are increasingly looking for value,” Swygert added.
The company’s shares were 1.9% lower at $60.80 ahead of the market open.
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