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 2018 ICR Conference. For
the nine-week period ended December 30, 2017, total sales increased
19.4%, with a comparable store sales increase of 3.9%.
Mark Butler, Chairman, President and Chief Executive Officer,
stated, “We are very pleased with our results during the holiday
season, and continue to see strong momentum in our business. We
kicked off the holiday season with great deals, rewarded our most
loyal customers during our Ollie’s Army Night, which was once again
a huge success, and saw that momentum carry throughout the
remainder of the season. We believe that we are well
positioned to deliver yet another quarter of strong sales growth.
Over our 35 years in the business, we have proudly and consistently
delivered great deals to our customers, while successfully
expanding our offering of Good Stuff Cheap to a growing number of
markets, and we are laser focused on continuing to meet our
long-term goals.”
Based on the trends to date, the Company currently estimates the
following results for the fiscal year ending February 3, 2018:
- Total net sales of approximately $1.070 billion;
- Comparable store sales growth of approximately 2.8%;
- Net income per diluted share (GAAP) of approximately
$1.38;
- Adjusted net income per diluted share(1) of approximately
$1.23, excluding the loss on extinguishment of debt and income tax
benefits due to the accounting change for stock based compensation;
and
- Weighted diluted average shares outstanding of approximately
65.0 million.
(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.
These revised estimates update the guidance provided by the
Company on December 6, 2017, which included expectations of total
net sales, comparable store sales, net income per diluted share
(GAAP), and Adjusted net income per diluted share, excluding the
loss on extinguishment of debt and income tax benefits due to the
accounting change for stock based compensation for the fiscal year
ending February 3, 2018, of $1.062 billion to $1.065 billion, 2.0%
to 2.5%, $1.36 to $1.37, and $1.21 to $1.22, respectively.
Subsequent to the nine-week period ended
December 30, 2017, the Company paid down an additional $46.3
million in term loan debt, resulting in a term loan debt balance of
$50.0 million.
The Company plans to report actual results for
the fourth quarter and fiscal year ending February 3, 2018, in
early April 2018.
Executive PromotionsIn
addition, the company announced that John Swygert has been promoted
to Executive Vice President and Chief Operating Officer, and Jay
Stasz has been promoted to Senior Vice President and Chief
Financial Officer.
Mr. Butler stated, “I am thrilled to announce these promotions
today, which are consistent with the Company’s vision and are a
planned part of the evolution of our business. John has been
instrumental to our success and has been my right hand since
joining the business 14 years ago, and I’m confident that he will
excel in this new role. Jay has worked closely with John and
myself over the past two years, and has demonstrated his ability to
take on the CFO position and proven to be a great fit with the
Ollie’s team. These changes put us in an even better position
to continue to execute and manage the long term growth of the
business.”
2018 ICR ConferenceThe Company
also announced that they will be presenting at the 2018 ICR
Conference, held at The Grande Lakes Orlando in Orlando, Florida,
on Tuesday, January 9, 2018, at 3:00 pm Eastern Standard
Time. Mr. Butler, Mr. Swygert and Mr. Stasz 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 $0.15 per
diluted share difference between the guidance for Net income per
diluted share and Adjusted net income per diluted share reflects
exclusion of the loss on extinguishment of debt and income tax
benefits due to the change in accounting for stock-based
compensation incurred and reported for the thirty-nine weeks ended
October 28, 2017. The Company cannot predict future estimates
of these items 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 268 store locations in 20
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 and
industry outlook. 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 including pending tax
legislation and the following: our failure to adequately procure
and 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; risks associated with the timely and
effective deployment and protection of computer and electronic
systems; 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 for us 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 OutletVice President – Marketing & Advertising
717-657-2300 dhaines@ollies.us
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