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Ollie's Bargain (OLLI) Q4 Earnings Top Estimates, Comps Up Y/Y
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Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) reported fourth-quarter fiscal 2023 results, wherein the top line met the Zacks Consensus Estimate, while the bottom line beat the same. Both the metrics exhibited year-over-year growth. This Harrisburg, PA-based company also witnessed an uptick in comparable store sales.
Here’s How the Top & Bottom Lines Fared
This extreme-value retailer of brand-name merchandise posted adjusted earnings of $1.23 per share, which comfortably beat the Zacks Consensus Estimate of $1.16 and increased meaningfully from 84 cents reported in the year-ago quarter.
Net sales of $648.9 million jumped 18% year over year due to a comparable store sales increase and new store unit growth. The top line came in line with the consensus estimate.
We note that comparable store sales rose 3.9% in the quarter under discussion compared with the 3% increase registered in the prior-year period. The reported figure also fared far better than our expectation of 3% growth.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
The gross profit grew 27.4% to $263 million during the quarter. The gross margin expanded 290 basis points to 40.5% due to decreased supply-chain costs and slightly higher merchandise margin primarily related to lower shrink. We had anticipated 180 basis points of gross margin expansion.
SG&A expenses shot up 19.1% to $156.1 million from the prior-year quarter’s level due to an increase in selling expenses associated with new store openings and higher incentive compensation. As a percentage of net sales, SG&A deleveraged 30 basis points to 24.1%.
The operating income surged 44.3% to $97.7 million, while the operating margin expanded 270 basis points to 15%. Adjusted EBITDA advanced 43.2% to $110.6 million during the quarter under review. The adjusted EBITDA margin increased 300 basis points to 17%. We had expected a 200-basis point expansion in the EBITDA margin.
Store Update
During the quarter, Ollie’s Bargain opened seven new stores, thereby bringing the total count to 512 stores in 30 states at the end of the period. This reflected an increase of 9.4% in the store count on a year-over-year basis. The company plans to open 48 net new stores in fiscal 2024.
Other Financial Aspects
Ollie’s Bargain ended the quarter with cash and cash equivalents of $266.3 million. The company had no borrowings outstanding under its $100 million revolving credit facility and $90 million of availability under the facility as of the end of the quarter.
During fiscal 2023, the company incurred capital expenditures of $124.4 million. For fiscal 2024, management projected capital expenditures of $85 million.
During the quarter under discussion, Ollie’s Bargain repurchased 174 thousand shares worth $12.7 million. The company had $85.7 million remaining under its share repurchase program.
Guidance
Management now envisions fiscal 2024 net sales between $2,248 million and $2,273 million, suggesting an increase from $2,102.7 million reported in fiscal 2023. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 1-2% compared with the comparable store sales increase of 5.7% reported last fiscal year.
Ollie’s Bargain envisions the gross margin rate to be 40% for fiscal 2024 compared with 39.6%. Ollie’s Bargain now anticipates an operating income in the range of $243-$251 million for fiscal 2024, up from $227.8 million reported in fiscal 2023.
Management now foresees fiscal 2024 adjusted earnings in the range of $3.10-$3.20 per share, up from the adjusted earnings of $2.91 reported last fiscal.
Shares of this Zacks Rank #3 (Hold) company have advanced 6.4% in the past three months against the industry’s decline of 2.3%.
Post Holdings, a consumer-packaged goods holding company, currently sports a Zacks Rank #1 (Strong Buy). POST has a trailing four-quarter earnings surprise of 52.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of around 15.2% and 3.4%, respectively, from the year-ago reported numbers.
Grocery Outlet, a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2 (Buy). GO has a trailing four-quarter earnings surprise of 17%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of around 9.6% and 10.3%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 155.4%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 18.6% and 35.6%, respectively, from the year-ago reported numbers.
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Ollie's Bargain (OLLI) Q4 Earnings Top Estimates, Comps Up Y/Y
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) reported fourth-quarter fiscal 2023 results, wherein the top line met the Zacks Consensus Estimate, while the bottom line beat the same. Both the metrics exhibited year-over-year growth. This Harrisburg, PA-based company also witnessed an uptick in comparable store sales.
Here’s How the Top & Bottom Lines Fared
This extreme-value retailer of brand-name merchandise posted adjusted earnings of $1.23 per share, which comfortably beat the Zacks Consensus Estimate of $1.16 and increased meaningfully from 84 cents reported in the year-ago quarter.
Net sales of $648.9 million jumped 18% year over year due to a comparable store sales increase and new store unit growth. The top line came in line with the consensus estimate.
We note that comparable store sales rose 3.9% in the quarter under discussion compared with the 3% increase registered in the prior-year period. The reported figure also fared far better than our expectation of 3% growth.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote
A Look at Margins
The gross profit grew 27.4% to $263 million during the quarter. The gross margin expanded 290 basis points to 40.5% due to decreased supply-chain costs and slightly higher merchandise margin primarily related to lower shrink. We had anticipated 180 basis points of gross margin expansion.
SG&A expenses shot up 19.1% to $156.1 million from the prior-year quarter’s level due to an increase in selling expenses associated with new store openings and higher incentive compensation. As a percentage of net sales, SG&A deleveraged 30 basis points to 24.1%.
The operating income surged 44.3% to $97.7 million, while the operating margin expanded 270 basis points to 15%. Adjusted EBITDA advanced 43.2% to $110.6 million during the quarter under review. The adjusted EBITDA margin increased 300 basis points to 17%. We had expected a 200-basis point expansion in the EBITDA margin.
Store Update
During the quarter, Ollie’s Bargain opened seven new stores, thereby bringing the total count to 512 stores in 30 states at the end of the period. This reflected an increase of 9.4% in the store count on a year-over-year basis. The company plans to open 48 net new stores in fiscal 2024.
Other Financial Aspects
Ollie’s Bargain ended the quarter with cash and cash equivalents of $266.3 million. The company had no borrowings outstanding under its $100 million revolving credit facility and $90 million of availability under the facility as of the end of the quarter.
During fiscal 2023, the company incurred capital expenditures of $124.4 million. For fiscal 2024, management projected capital expenditures of $85 million.
During the quarter under discussion, Ollie’s Bargain repurchased 174 thousand shares worth $12.7 million. The company had $85.7 million remaining under its share repurchase program.
Guidance
Management now envisions fiscal 2024 net sales between $2,248 million and $2,273 million, suggesting an increase from $2,102.7 million reported in fiscal 2023. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 1-2% compared with the comparable store sales increase of 5.7% reported last fiscal year.
Ollie’s Bargain envisions the gross margin rate to be 40% for fiscal 2024 compared with 39.6%. Ollie’s Bargain now anticipates an operating income in the range of $243-$251 million for fiscal 2024, up from $227.8 million reported in fiscal 2023.
Management now foresees fiscal 2024 adjusted earnings in the range of $3.10-$3.20 per share, up from the adjusted earnings of $2.91 reported last fiscal.
Shares of this Zacks Rank #3 (Hold) company have advanced 6.4% in the past three months against the industry’s decline of 2.3%.
3 Picks You Can’t Miss Out On
Here, we have highlighted three better-ranked stocks, namely Post Holdings (POST - Free Report) , Grocery Outlet (GO - Free Report) and Vital Farms (VITL - Free Report) .
Post Holdings, a consumer-packaged goods holding company, currently sports a Zacks Rank #1 (Strong Buy). POST has a trailing four-quarter earnings surprise of 52.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of around 15.2% and 3.4%, respectively, from the year-ago reported numbers.
Grocery Outlet, a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2 (Buy). GO has a trailing four-quarter earnings surprise of 17%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of around 9.6% and 10.3%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 155.4%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 18.6% and 35.6%, respectively, from the year-ago reported numbers.