Ollie’s Bargain Outlet Holdings, Inc. OLLI reported first-quarter 2025 earnings on Tuesday.
The U.S. discount store chain reported adjusted earnings of 75 cents per share, beating the consensus of 71 cents per share.
The company reported sales of $576.77 million, beating the consensus of $565.95 million.
Net sales increased 13.4%, driven by new store unit growth and an increase in comparable store sales.
- Comparable store sales increased 2.6%, driven by an increase in transactions.
- Ollie Army loyalty members increased by 9.2% to more than 15.5 million.
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Adjusted EBITDA was $72.2 million, and adjusted EBITDA margin was 12.5%.
“As consumers seek out value and the current environment weighs on retailers and suppliers, we believe we are well positioned to benefit… Our unique operating model gives us a ton of flexibility when it comes to navigating a choppy environment, and this puts us in a very strong position versus most retailers,” said Eric van der Valk, president and CEO.
The company opened 25 new stores, including 18 former Big Lots locations acquired through bankruptcy auction, and ended the quarter with 584 stores in 32 states, an increase of 13.2% year over year.
Guidance: The company is reaffirming its earnings outlook for fiscal 2025.
Ollie’s Bargain Outlet expects fiscal year 2025 adjusted earnings of $3.65-$3.75 per share compared to consensus of $3.73 per share.
The company expects a comparable store sales increase of 1.4%-2.2% compared to prior guidance of 1.0%-2.0%.
It raises 2025 sales guidance from $2.56 billion to $2.58 billion, compared to the consensus of $2.58 billion.
Price Action: OLLI stock is down 1.7% at $110.00 at last check on Tuesday.
Stock Prediction For 2025
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research to value and forecast stocks. However, many traders turn to technical analysis to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Ollie’s Bargain Outlet, an investor could make an assessment about a stock’s long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line.
For Ollie’s Bargain Outlet, the 200-day moving average sits at $103.46, according to Benzinga Pro, which is below the current price of $110.70. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
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