Ollie’s boosts sales with low prices and cuts profits
Harrisburg, Pennsylvania – Ollie’s Bargain Outlet generated a healthy increase in revenue, even though comp sales were lukewarm.
Second-quarter off-price sales increased 8.8% to $452.5 million. Same-store sales increased 1.2%, in line with expectations.
Price investments put pressure on margins and total net income fell 58.9% to $14.1 million, or $0.22 per diluted share.
“We expect to see the impact on gross margin reverse in the third quarter,” said John Swygert, president, chief executive officer and chief financial officer.
“Given the many economic challenges and market disruptions today, we believe extreme value will become increasingly important in the second half of the year,” he added, citing the large number of ongoing closing agreements for the third. trimester.
The 452-store company expects full-year sales growth of 5.1% to 6.1%, totaling $1.843 billion to $1.861 billion. It is looking to new stores for most of this increase, with an expected decline of 2.5% to 1.5%.
Ollie’s plans to open 41 to 43 new stores, minus two moves and one closure.
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