Shares of Ollie's Bargain Outlet (OLLI) - Get Free Report fell Friday after the discount retailer posted lower-than-forecast sales and earnings for the fiscal third quarter due to supply-chain issues.
For the quarter ended Oct. 30, Ollie's net income nearly halved to $23.2 million, or 36 cents a share, from $45.2 million, or 68 cents a share, in the year-earlier quarter.
Revenue declined 7.5% to $383.5 million from $414.4 million in the year-ago quarter.
"Our third-quarter performance was impacted by greater than anticipated supply chain related headwinds, leading to lower than expected results," President and Chief Executive John Swygert said in a statement.
Analysts surveyed by FactSet were expecting earnings of 47 cents a share on revenue of $415.2 million.
Comparable-store sales declined 15.5% against the FactSet estimate of a drop of 9.3%.
Shares of the Harrisburg, Pa., company at last check was off 20% at a 52-week low $50.
"While we believe that many of the factors impacting us are transitory in nature and we are taking proactive steps to navigate these challenges, these pressures have continued to impact our business in the fourth quarter,” Swygert added.
Ollie's offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company's products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys.
"As we look past 2021, we are confident that we will continue to grow well into the future with the significant white space in front of us and deliver strong growth in both our top and bottom lines as we have for almost 40 years,” Swygert said.
The board authorized management to buy back as much as $200 million of additional stock. In the year to date Ollie's had bought back $200 million as well, including $164 million in Q3.