Ollie's Shares Spike on Stronger-Than-Expected Guidance

Ollie's shares rose after the discount retailer issued revenue guidance that beat analysts' expectations.
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Ollie's Bargain Outlet  (OLLI) - Get Report stock jumped after the discount retailer provided second-quarter guidance ahead of analyst expectations. 

The Harrisburg, Pa., company expects net sales of $515 million for the second quarter ending Aug. 1, with comparable-store-sales growth of about 40%. 

Analysts surveyed by Yahoo Finance were expecting revenue of $387.9 million for the quarter. 

The company also expects a gross-profit margin of about 39% with an operating margin of about 16%. 

The company's operating margin in the previous quarter was 12.3%. Its first-quarter gross margin was 40.2%. 

Ollie's is scheduled to report its quarterly results on Aug 8 with analysts expecting earnings of 49 cents per share. 

"Our ability to keep pace with the spike in demand and deliver outstanding comparable store sales growth and operating margins is a testament to our organization’s ability to execute at extraordinary levels," Chief Executive John Swygert said in a statement.

Looking ahead, the company expects to continue to benefit from the coronavirus's disruption of the marketplace, Swygert said. 

"Deal flow is strong and while we can’t control the continued uncertainties related to the impact of covid-19 or the associated economic stimulus, we will keep doing what we do best; buy cheap and sell cheap, while maintaining discipline in how we operate our business," Swygert said. 

Ollie's shares at last check were 9% to $107.50.