Ollie’s Bargain Outlet Holdings Inc. shares sank 7.3% in Wednesday premarket trading after it missed first-quarter expectations. The “extreme value” retailer posted net income totaling $12.5 million, or 20 cents per share, down from $55.2 million, or 84 cents per share, last year. Adjusted EPS of 20 cents missed the FactSet consensus for 30 cents. Sales of $406.7 million were down from $452.5 million and also missed the FactSet consensus of $416.6 million. Comparable store sales fell 17.3% deeper than the FactSet consensus for a 15.5% decline. “Our current sales trends have improved meaningfully in the second quarter fueled by increased demand for warm weather seasonal products, combined with our incredible deals and strong inventory position,” said Chief Executive John Swygert in a statement. “We are doubling down on our efforts to offer great value as consumers continue to feel inflationary pressures, although we have not yet seen the full benefit of consumers trading down.” For the second quarter, Ollie’s is guiding for sales of $450 million to $460 million, comparable store sales ranging from flat to up 3%, and adjusted EPS of 32 cents to 35 cents. The FactSet consensus is for sales of $447.4 million, a comparable store sales decline of 0.8% and EPS of 33 cents. For the year, Ollie’s outlook is for net sales of $1.87 billion to $1.90 billion, comparable store sales ranging from down 2% to flat, and adjusted EPS of $1.83 to $1.98. The FactSet consensus is for sales of $1.898 billion, a comparable store sales decline of 1.2% and EPS of $2.13. Ollie’s stock has slipped 0.4% for the year to date while the S&P 500 index is down 12.7% for the period.
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