Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) Misses Analysts’ Estimates

Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) stock fell 20.63% (As on Dec 3, 11:54:07 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 21. Comparable store sales decreased 15.5% from the prior year increase of 15.3%. Comparable store sales decreased 1.3% compared with the third quarter of fiscal 2019. The Company has opened 18 new stores, ending the quarter with 426 stores in 29 states, a year-over-year increase in store count of 10.6%. Adjusted operating income decreased 48.3% to $29.9 million and adjusted operating margin decreased 610 basis points to 7.8%. The company reported net income of $23.2 million for the third quarter of FY 21, as compared with net income of $45.2 million in the prior year. Adjusted EBITDA decreased 41.9% to $37.9 million and adjusted EBITDA margin decreased 590 basis points to 9.9%.

OLLI in the third quarter of FY 21 has reported the adjusted earnings per share of 34 cents, missing the analysts’ estimates for the adjusted earnings per share of 47 cents, according to Zacks Investment Research. The company had reported 7.5 percent fall in the adjusted revenue growth to $383.5 million in the third quarter of FY 21, missing the analysts’ estimates for revenue of $410.1 million. In addition, the Company experienced greater than anticipated supply chain related headwinds, including shipping delays of imported seasonal and other products and subsequent backlogs in its distribution centers, which resulted in sales results below expectations in the third quarter of fiscal 2021. Gross profit decreased 11.0% to $152.6 million in the third quarter of fiscal 2021 from $171.5 million in the third quarter of fiscal 2020. Gross margin decreased 160 basis points to 39.8% in the third quarter of fiscal 2021 from a very strong 41.4% in the third quarter of fiscal 2020. The decrease in gross margin in the third quarter of fiscal 2021 is mainly due to increased supply chain costs, the result of higher import and trucking costs and, to a lesser extent, higher wage rates in the distribution centers, partially offset by an increased merchandise margin.

Ollie’s Bargain Outlet expects full-year earnings to be in the range of $2.30 to $2.35 per share, with revenue expected to be in the range of $1.76 billion to $1.77 billion.

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