Ollie's Bargain Outlet (OLLI) Tops Q1 EPS by 4c, Revenues Beat; Boosts FY Guidance
Ollie's Bargain Outlet (NASDAQ: OLLI) reported Q1 EPS of $0.41, $0.04 better than the analyst estimate of $0.37. Revenue for the quarter came in at $275.7 million versus the consensus estimate of $267.15 million.
First Quarter Summary:
- Total net sales increased 21.1% to $275.7 million.
- Comparable store sales increased 1.9%.
- The Company opened eight stores and entered one new state during the quarter, ending the period with a total of 276 stores in 21 states, an increase in store count of 15.5% year over year.
- Operating income increased 31.6% to $36.0 million and operating margin increased 110 basis points to 13.1%.
- Net income increased 60.6% to $30.5 million and net income per diluted share increased 58.6% to $0.46.
- Adjusted net income(1) increased 66.4% to $26.6 million and adjusted net income per diluted share(1) increased 64.0% to $0.41.
- Adjusted EBITDA(1) increased 27.7% to $41.0 million.
Mark Butler, Chairman, President and Chief Executive Officer, stated, “We feel great about the strong start to 2018 and the continued momentum of our business. Our first quarter results were very strong across the board as we delivered our 16th consecutive quarter of positive comparable store sales and a 66% increase in adjusted net income(1). In addition, we entered our 21st state with two stores in Arkansas, and we are excited to bring ‘Good Stuff Cheap’ to a growing base of customers. Looking ahead, we are encouraged by early trends in the second quarter. We work very hard every day to further develop our vendor relationships and execute our strategic growth initiatives. We believe we are well-positioned to continue delivering great bargains to our customers and long-term growth to our shareholders.”
Fiscal 2018 Outlook
Ollie’s is raising sales and earnings guidance for the full year fiscal 2018 to reflect its first quarter results. The Company is now estimating the following:
- Total net sales of $1.207 billion to $1.215 billion;
- Comparable store sales growth of 1.0% to 2.0%;
- The opening of 36 to 38 new stores and one relocation;
- Operating income of $152.0 million to $154.0 million;
- Adjusted net income(2) of $112.0 million to $114.0 million and adjusted net income per diluted share(2) of $1.69 to $1.72, both of which exclude excess tax benefits related to stock-based compensation and the after-tax loss on extinguishment of debt;
- An effective tax rate of 26.0%, which excludes excess tax benefits related to stock-based compensation;
- Diluted weighted average shares outstanding of 66.0 million; and
- Capital expenditures of $23.0 million to $25.0 million.
GUIDANCE:
Ollie's Bargain Outlet sees FY2018 EPS of $1.69-$1.72, versus the consensus of $1.68. Ollie's Bargain Outlet sees FY2018 revenue of $1.207-1.215 billion, versus the consensus of $1.21 billion.
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