Company now sees fiscal 2026 net sales of $2.928 bln to $2.941 bln, down from $2.980 bln to $3.000 bln.
Ollie's expects fiscal 2026 comparable store sales growth of 0% to 0.5%, down from about 2%.
Company raises fiscal 2026 gross margin outlook to about 41.3% from about 40.7%.
Overview
U.S. off-price retailer's Q2 net sales rose 9.1% but missed analyst expectations.
Adjusted EPS for Q2 grew 43% and beat analyst expectations.
Comparable store sales fell 1.8% due to weather, economic pressures, and promotions.
Result drivers
Store openings - Net sales growth was driven by new store unit growth, per company statement.
Comparable sales decline - Company said comparable store sales fell 1.8% due to less favorable weather, economic pressures on consumers, and elevated promotions.
Gross margin boost - Gross margin increased 360 basis points, mainly due to lower supply chain costs from IEEPA tariff refunds and reduced tariff rates.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the discount stores peer group is "buy".
Wall Street's median 12-month price target for Ollie's Bargain Outlet Holdings Inc is $112.00, about 54.8% above its September 1 closing price of $72.34.
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago.
OLLI•
