Q1 Miss, FY22 Outlook Cut, CFO Departure: Lots Going On With Ollie's Bargain Outlet

  • Ollie's Bargain Outlet Holdings Inc OLLI reported a first-quarter FY22 sales decline of 10.1% year-on-year to $406.67 million, missing the consensus of $417.24 million.
  • Comparable store sales decreased 17.3% in Q1 versus an 18.8% increase last year.
  • Gross profit fell 22.6% Y/Y to $141.3 million, with the margin contracting 560 basis points to 34.8%.
  • The operating margin decreased 1,150 basis points to 4.2%, and operating income for the quarter fell 75.9% to $17.1 million.
  • Ollie's held $205.5 million in cash and equivalents as of April 30, 2022. Cash used in operating activities totaled $(31.5) million.
  • Inventories at the end of Q1 increased 45.6% to $517 million.
  • The company ended the quarter with 439 stores in 29 states, a 10.6% increase in store count.
  • Adjusted EBITDA of $26.2 million declined 66.9% Y/Y, and the margin decreased 1,100 basis points to 6.5%.
  • Adjusted EPS of $0.20 missed the analyst consensus of $0.30.
  • Outlook: Ollie's sees Q2 adjusted EPS of $0.32 - $0.35 versus the consensus of $0.33. It expects sales of $450 million - $460 million, above the consensus of $449.35 million.
  • OLLI expects FY22 adjusted EPS of $1.83 - $1.98 (prior view $2.15 - $2.22), against the Street view of $2.13.
  • It expects sales of $1.87 billion - $1.90 billion (prior view $1.908 billion - $1.926 billion) versus the consensus of $1.90 billion.
  • CFO Departure: Jay Stasz has resigned to pursue another opportunity, and his last day as CFO will be June 30, 2022. CEO John Swygert will assume the additional role of interim CFO until a successor is named.
  • Price Action: OLLI shares are trading lower by 3.22% at $49.35 in premarket on the last check Wednesday.
  • Photo Via Company
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