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

Posted In: BriefsEarningsNewsGuidanceMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.