Ollie's (OLLI) Reports Q1: Everything You Need To Know Ahead Of Earnings

Anthony Lee /
2024/06/04 3:01 am EDT

Discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) will be reporting results tomorrow before market hours. Here's what to look for.

Ollie's met analysts' revenue expectations last quarter, reporting revenues of $648.9 million, up 18% year on year. It was an ok quarter for the company, with a decent beat of analysts' gross margin estimates but underwhelming earnings guidance for the full year.

Is Ollie's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Ollie's revenue to grow 10.2% year on year to $506.2 million, slowing from the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.

Ollie's Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ollie's has missed Wall Street's revenue estimates four times over the last two years.

Looking at Ollie's peers in the discount retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Burlington delivered year-on-year revenue growth of 10.5%, meeting analysts' expectations, and Ross Stores reported revenues up 8.1%, in line with consensus estimates. Burlington traded up 19.8% following the results while Ross Stores was also up 7.8%.

Read our full analysis of Burlington's results here and Ross Stores's results here.

There has been positive sentiment among investors in the discount retailer segment, with share prices up 11.5% on average over the last month. Ollie's is up 6.4% during the same time and is heading into earnings with an average analyst price target of $87.5 (compared to the current share price of $83.69).

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