Bulletin
Investor Alert

Market Pulse Archives

Aug. 28, 2019, 4:36 p.m. EDT

Ollie's Bargain Outlet stock plunges more than 25% as earnings miss, annual forecast is cut

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Ollie's Bargain Outlet Holdings Inc. (OLLI)

or Cancel Already have a watchlist? Log In

By Jeremy C. Owens

OLLI

Ollie's Bargain Outlet Holdings Inc. /zigman2/quotes/208674659/composite OLLI -0.42% shares fell more than 25% in after-hours trading Wednesday, after the retailer said that earnings were damaged by rapid expansion and cut its annual forecast. Ollie's reported second-quarter earnings of $25.3 million, or 38 cents a share, on sales of $333.9 million, up from $288.1 million the year before. After adjusting for certain tax benefits, Ollie's reported earnings of 35 cents a share, down from 40 cents a share in the year-ago quarter. Analysts on average expected earnings of 42 cents a share on sales of $330 million. Chief Executive Mark Butler noted that Ollie's opened twice as many stores in the quarter as it had the quarter before, including taking over 13 former Toys R Us locations. "The exceptional strength, rapid pace of openings and larger footprint of these new stores impacted comparable store sales through increased cannibalization and supply chain pressures that reduced comparable store inventory levels," he said in Wednesday's announcement. "Comparable store sales were also affected by headwinds from store classes with exceptionally strong first-year sales now normalizing as they entered the comparable store base." Ollie's slashed its prediction for same-store sales growth to a decrease of 0.5% to 1.5%, after previously guiding for growth of 1% to 2%. The retail chain now expects 2019 sales of $1.42 billion to $1.43 billion, a cut of roughly $20 million from previous guidance, and adjusted earnings of $1.95 a share to $2 a share, down from previous guidance of $2.13 to $2.17 a share. Ollie's stock, down 6.4% in the past year to $77.77 at Wednesday's close, declined to less than $59 in extended trading.

/zigman2/quotes/208674659/composite
US : U.S.: Nasdaq
$ 102.67
-0.44 -0.42%
Volume: 709,989
Aug. 13, 2020 4:00p
P/E Ratio
49.54
Dividend Yield
N/A
Market Cap
$6.78 billion
Rev. per Employee
$179,718
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.