Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) (“Ollie’s” or
the “Company”) today commented on its holiday sales and full year
outlook ahead of its participation at the 2017 ICR Conference. For
the nine-week period ended December 31, 2016, total sales increased
16.3%, with a comparable store sales increase of 1.9%.
Mark Butler, Chairman, President and Chief Executive Officer,
stated, “We are thrilled with our holiday sales results, as well as
the underlying trends and consistency of the business. Despite an
extremely challenging same store sales comparison of 14% on a
two-year stacked basis, we believe our sales results through the
first nine weeks of the quarter position us well to deliver another
solid increase in comparable store sales in the fourth quarter. One
of the hallmarks of the business over our 34 year history has been
the long-term overall consistency of results and ability to deliver
profitable growth across different geographic regions and economic
environments. Our stores are full of Good Stuff Cheap and the
consumer continues to respond favorably to the Bargains we offer.”
Based on the trends to date, the Company currently estimates the
following results for the fiscal year ending January 28, 2017:
- Total net sales of approximately $888 million;
- Comparable store sales growth of approximately 3.0%;
- Net income per diluted share (GAAP) of approximately
$0.93;
- Excluding transaction expenses, Adjusted net income per diluted
share(1) of approximately $0.94; and
- Estimated weighted diluted average shares outstanding of
approximately 62.5 million.
This updates the guidance provided by the Company on December 7,
2016, which included expectations of net sales, net income per
diluted share (GAAP), and Adjusted net income per diluted share for
the fiscal year ending January 28, 2017, of $882 million to $885
million, $0.91 to $0.92, and $0.92 to $0.93, respectively.
The Company plans to report actual results for the fourth
quarter and fiscal year ending January 28, 2017, in late March
2017.
(1) Adjusted net income per diluted share is not
a measure recognized under the U.S. generally accepted accounting
principles (“GAAP”). See “Non-GAAP Financial Measures”
below.
2017 ICR Conference
The Company also announced that they will be presenting at the
2017 ICR Conference held at The Grande Lakes Orlando in Orlando,
Florida, on Tuesday January 10, 2017, at 2:30 pm Eastern Standard
Time. Mark Butler, Chairman, President and CEO, John Swygert,
EVP and CFO, and Jay Stasz, SVP, Finance & CAO, will host the
presentation.
The audio portion of the presentation will be webcast live at
http://investors.ollies.us and a replay of the presentation will
also be contained on the Investor Relations section of the
Company’s website.
Non-GAAP Financial MeasuresThe
Company has included this non-GAAP measure because it is a key
measure used by management and the board of directors to evaluate
operating performance and the effectiveness of the Company’s
business strategies and make budgeting decisions. Management
believes it is useful to investors and analysts to evaluate this
non-GAAP measure on the same basis as management uses to evaluate
the Company’s operating results. The Company believes that
excluding items that may not be indicative of, or are unrelated to,
its core operating results and that may vary in frequency or
magnitude from Net income per diluted share, enhances the
comparability of the Company’s results and provides a better
baseline for analyzing trends in its business. The $0.01 per
diluted share difference between the guidance for Net income per
diluted share and Adjusted net income per diluted share reflects
the transaction related expenses already incurred and reported for
the thirty-nine weeks ended October 29, 2016. The Company
cannot predict future transaction related estimates without
unreasonable effort and therefore excludes any such estimates from
its Outlook. Non-GAAP financial measures should be viewed as
supplementing, and not as an alternative or substitute for, the
Company’s financial results prepared in accordance with GAAP.
The methods used by the Company to calculate its non-GAAP financial
measures may differ significantly from methods used by other
companies to compute similar measures. As a result, any non-GAAP
financial measures presented herein may not be comparable to
similar measures provided by other companies.
About Ollie’sWe are a highly
differentiated and fast growing, extreme value retailer of brand
name merchandise at drastically reduced prices. We are known for
our assortment of merchandise offered as Good Stuff Cheap®.
We offer name brand products, Real Brands! Real Bargains!®, in
every department, including housewares, food, books and stationery,
bed and bath, floor coverings, toys, hardware and other
categories. We currently operate 234 store locations in 19
states across the Eastern portion of the United States. For more
information, visit www.ollies.us.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words
such as “could,” “may,” “might,” “will,” “likely,” “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“continues,” “projects” and similar references to future periods,
or by the inclusion of forecasts or projections, the outlook for
the Company’s future business, prospects, financial performance,
industry outlook, our 2016 business outlook and financial guidance.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions and the following:
our failure to adequately manage our inventory or anticipate
consumer demand; changes in consumer confidence and spending; risks
associated with intense competition; our failure to open new
profitable stores, or successfully enter new markets, on a timely
basis or at all; our failure to hire and retain key personnel and
other qualified personnel; our inability to obtain favorable lease
terms for our properties; the loss of, or disruption in the
operations of, our centralized distribution centers; fluctuations
in comparable store sales and results of operations, including on a
quarterly basis; risks associated with our lack of operations in
the growing online retail marketplace; our inability to
successfully implement our marketing, advertising and promotional
efforts; the seasonal nature of our business; the risks associated
with doing business with international manufacturers; changes in
government regulations, procedures and requirements; and our
ability to service our indebtedness and to comply with our
financial covenants together with the other factors set forth under
“Risk Factors” in our filings with the United States Securities and
Exchange Commission (“SEC”). Any forward-looking statement made by
us in this press release speaks only as of the date on which it is
made. Factors or events that could cause our actual results to
differ may emerge from time to time, and it is not possible to
predict all of them. Ollie’s undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may
be required by law. You are advised, however, to consult any
further disclosures we make on related subjects in our public
announcements and SEC filings.
Investor Contact:
John Rouleau
ICR
203-682-8200
John.Rouleau@icrinc.com
Media Contact:
Dan Haines
Ollie's Bargain Outlet
Vice President – Marketing & Advertising
717-657-2300
dhaines@ollies.us
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