Ollie's Bargain Outlet (NASDAQ:OLLI) shares added almost 5% before Wednesday’s opening bell in New York after the company’s third-quarter earnings topped estimates and it raised its full-year guidance.
The discount retailer posted a 14.8% year-over-year increase in sales to $480.1 million, ahead of estimates of $470.9 million.
Earnings per share (EPS) of $0.51 also came in ahead of estimates of $0.45 and were up from $0.37 in the year-ago quarter.
The company opened 23 new stores during the three-month period, ending the quarter with 505 stores in 30 states, a 9.1% year-over-year increase.
“Our third quarter sales and margins came in ahead of our expectations, driven by strong deal flow, lower supply chain costs, and continued execution throughout the organization,” Ollie’s CEO John Swygert said in a statement.
“Consumers remain under pressure and are looking for ways to save money on branded merchandise they need and want in their homes.”
The company said it was raising its full-year sales and earnings guidance based on its strong 3Q results and current business trends.
It now expects sales in the range of $2.097 billion to $2.104 billion and adjusted EPS of $2.77 to $2.83, up from its prior guidance of $2.076 billion to $2.091 billion and $2.65 to $2.74 respectively.
This compares to Wall Street estimates of sales of $2.09 billion and adjusted EPS of $2.74.
Shares of Ollie’s were up 4.7% at US$79.80 before the market opened on Wednesday.
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