Q3 2024 Ollie's Bargain Outlet Holdings Inc Earnings Call Transcript
Key Points
- Ollie's Bargain Outlet Holdings Inc (OLLI) delivered a 14% increase in adjusted EPS driven by an 8% increase in sales and a 100 basis point increase in gross margin.
- The company opened a record 24 new stores in the third quarter, strengthening its presence and growth potential.
- Ollie's Bargain Outlet Holdings Inc (OLLI) has a strong balance sheet with $304 million in cash and no outstanding borrowings, enhancing its credibility with vendors.
- The company is benefiting from strong demand for everyday consumables and discretionary categories like furniture and outdoor living.
- Ollie's Bargain Outlet Holdings Inc (OLLI) has a robust new store pipeline, with plans to open a minimum of 56 new stores in 2025, meeting its 10% growth goal.
- Comparable store sales declined by 0.5% in the third quarter, with both transactions and basket size down slightly.
- The company faced several short-term headwinds, including hurricanes, Big Lots store closures, and unseasonably warm temperatures impacting sales.
- SG&A expenses as a percentage of net sales increased by 40 basis points due to deleverage of fixed expenses.
- The mix of consumer staples, while driving frequency, has a 20-point drag on gross margin.
- The company anticipates a 50 basis point drag on comps in the fourth quarter due to ongoing Big Lots store closures.
Good morning, and welcome to Ollie's Bargain Outlet Conference Call to discuss the financial results for the third quarter of fiscal year 2024. (Operator Instructions)
Please be advised this call is being recorded and the reproduction of this call in whole or in part is not permitted without expressed written authorization of Ollie's. Joining us on the call today from Ollie's management are John Swygert, Chief Executive Officer; Eric van der Valk (technical difficulty)
Certain comments made today may constitute forward-looking statements are made pursuant to the certain comments made today may constitute forward-looking statements and are made pursuant and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in our annual reports on Form 10-K and quarterly reports on Form 10-Q on file with the SEC and in the
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