Ollie's Bargain Outlet Slashes FY22 Forecast On Q2 Earnings Miss - Ollie's Bargain Outlet (NASDAQ:OLLI)

Ollie's Bargain Outlet Holdings Inc OLLI reported second-quarter sales growth of 8.8% year-on-year to $452.48 million, missing the consensus of $457.45 million.
Comparable store sales increased 1.2% in Q2.
Gross profit fell 11.9% Y/Y to $143.6 million, with the margin contracting 750 basis points to 31.7%.
Operating margin decreased 730 basis points to 3.7%, and operating income for the quarter fell 63.8% to $16.5 million.
Adjusted EBITDA of $25.9 million declined 52.1% Y/Y, and the margin decreased 730 basis points to 5.7%.
Adjusted EPS of $0.22 missed the analyst consensus of $0.33.
Ollie's held $218 million in cash and equivalents as of July 30, 2022. Cash provided by operating activities for the quarter totaled $35.5 million.
Inventories at the end of Q2 increased 32.3% to $494.1 million, reflecting supply chain costs, increased number of stores, and the timing of merchandise receipts.
As of Q2 end, OLLI had $170 million remaining under its share repurchase authorization.
Outlook: Ollie's sees Q3 sales of $426 million - $434 million versus the consensus of $438.98 million. Comparable store sales of 3.5% - 5.5%.
It sees Q3 Adjusted EPS of $0.39 - $0.43 versus the Street view of $0.34.
OLLI expects FY22 sales of $1.843 billion - $1.861 billion (prior view $1.870 billion - $1.900 billion) versus the consensus of $1.88 billion. Comparable store sales ranging from -2.5% to -1.5% (prior view -2.0% to flat).
It sees FY22 Adjusted EPS of $1.74 - $1.79 (previous view $1.83 - $1.98) against the consensus of $1.89.
Price Action: OLLI shares are trading lower by 3.30% at $53.49 on the last check Thursday.
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