Ollie's Bargain Outlet (OLLI) - Get Report shares jumped in late trading Tuesday after the closeout retailer reported fiscal third-quarter net income per share rose a stronger-than-expected 7.9% on 15% higher sales.
And the company named John Swygert president, CEO and a director. Swygert, currently chief operating officer, was named interim CEO after Mark Butler passed away Dec. 1.
For the quarter ended, the Harrisburg, Pa., company earned 41 cents a share, up from 38 cents in the year-earlier quarter. Revenue was $327 million against $283.6 million.
A survey of analysts by FactSet produced consensus estimates of earnings of 38 cents a share on revenue of $323 million.
Same-store sales fell 1.4% in the latest quarter. Analysts in the FactSet-derived survey were looking for a drop of 1.3%.
Gross-profit margin widened 0.1 percentage point to 40.8% in the quarter, prompted by by wider merchandise margins and offset partly by higher supply-chain costs, Ollie's said.
The retailer affirmed its guidance for the fiscal year. It expects adjusted profit of $1.95 to $2 a share on net sales of $1.42 billion to $1.43 billion.
Comparable-store sales for the fiscal year should ease 0.5% to 1.5%, Ollie’s estimated. Gross margin should come in at 39.5%.
Analysts surveyed by FactSet are looking for adjusted profit of $1.96 a share on sales of $1.43 billion, with same-store sales off 1%.
Butler, who had held the post of chairman president and CEO at Ollie's, died at 61. Butler had founded Ollie's in 1982 in Mechanicsburg, Pa.
Swygert joined Ollie's in 2004 as chief financial officer and added the title of executive vice president in 2011. He was named chief operating officer in January 2018.
The chain, which markets with the slogan "Good Stuff Cheap," operates 345 stores in 25 States in the eastern U.S.
At last check after hours Ollie's shares were up 10%. They closed the regular session up 0.1% at $60.30.