Why Discount Closeout Retailer Ollie's Stock Is Jumping Today
Portfolio Pulse from Nabaparna Bhattacharya
Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) reported strong Q3 FY23 results with sales growth of 14.8% Y/Y to $480.05 million, surpassing consensus estimates. Comparable store sales rose by 7.0%, and the company opened 23 new stores. Operating income and gross profit saw significant increases, with operating margin and gross margin both expanding. Adjusted EBITDA and its margin also increased. Adjusted EPS of $0.51 beat consensus, and the company repurchased shares worth $10.8 million. Ollie's raised its FY23 net sales and Adjusted EPS outlook, leading to a 6.39% rise in stock price to $81.10.

December 06, 2023 | 3:08 pm
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POSITIVE IMPACT
Ollie's Bargain Outlet reported strong Q3 FY23 results with sales exceeding expectations, a rise in comparable store sales, and increased operating income and gross profit. The company also raised its FY23 outlook and repurchased shares, leading to a positive stock price movement.
The positive earnings report and raised guidance indicate strong company performance and future confidence, which typically result in a positive short-term impact on the stock price. The share repurchase program also signals management's belief in the company's value, supporting the stock's upward movement.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100