Ollie’s Bargain Outlet Holdings Inc. (OLLI) saw a 4.6% increase in its stock during premarket trading on Wednesday following the release of its impressive third-quarter earnings. The company also raised its earnings outlook for 2023, surpassing analyst expectations.
Strong Performance in Q3
Ollie’s Bargain Outlet reported that its sales and margins in the third quarter exceeded expectations, contributing to its positive financial results. The company’s net income for the quarter reached $31.8 million, or 51 cents per share, compared to $23.1 million, or 37 cents per share, in the same period last year. This adjusted profit of 51 cents per share surpassed the FactSet consensus estimate of 45 cents per share.
Promising Outlook
With its strong performance and confident outlook, Ollie’s Bargain Outlet has raised its earnings projection for 2023. The company now anticipates earnings between $2.77 and $2.83 per share, exceeding the analyst estimate of $2.73 per share.
Meeting Consumer Demands
According to Ollie’s CEO, John Swygert, consumers continue to face financial pressures and are actively seeking ways to save money on essential branded products for their homes. Swygert also highlighted the increasing competition among manufacturers for retail shelf space, which has led to more closeout opportunities and innovation in product offerings.
Ollie’s Bargain Outlet remains committed to meeting the demands of cost-conscious consumers while capitalizing on evolving market dynamics and securing a strong foothold in the industry.