Ollie's Bargain Outlet Holdings, Inc. OLLI reported Q3 FY23 sales growth of 14.8% Y/Y to $480.05 million, beating the consensus of $468.55 million.
Comparable store sales increased 7.0% from the prior year's increase of 1.9%.
The company opened 23 new stores, ending the quarter with 505 stores in 30 states, a year-over-year increase in store count of 9.1%.
Operating income increased 32.3% to $39.1 million and operating margin expanded 100 basis points to 8.1%.
Gross profit increased 17.9% to $194.1 million, while gross margin increased 100 basis points to 40.4%.
The increase in gross margin was primarily due to favorable supply chain costs partially offset by lower merchandise margins related to shrink and merchandise mix.
Adjusted EBITDA increased 29.5% to $51.1 million, and adjusted EBITDA margin increased 120 basis points to 10.6%.
Inventories as of the end of the quarter increased 1.7% to $532.4 million, driven by new store growth, partially offset by the impact of lower capitalized freight costs.
Adjusted EPS of $0.51 beat the analyst consensus of $0.44.
In Q3, the company repurchased 142,453 shares of its common stock for $10.8 million. As of the end of the third quarter, the company had $98.4 million of remaining capacity under its current share repurchase program.
FY23 Outlook: Ollie's increased its FY23 net sales outlook to $2.097 billion-$2.104 billion from $2.076 billion-$2.091 billion vs. the consensus of $2.09 billion.
Ollie's Bargain raised its FY23 Adjusted EPS outlook to $2.77-$2.83 from $2.65-$2.74 versus the consensus of $2.73.
Read Next: Why ENT-Focused OptiNose Shares Are Diving Today
Price Action: OLLI shares are trading higher by 6.39% at $81.10 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.