The revised sales guidance, lowered from a previous ceiling of $3 billion, reflects cooling consumer demand. Chief Executive Eric van der Valk pointed to persistent economic pressure, unfavorable weather, and an aggressive promotional environment as primary headwinds during the second quarter. Same-store sales dipped 1.8%, missing analyst expectations of a 1.1% decline, even as total revenue climbed 9% to $741.3 million.
In section Market Quotes
Ollie's Bargain Outlet Boosts Profit Forecast on Tariff Windfall
A $28.3 million tariff refund is shielding Ollie's Bargain Outlet from stagnant sales, prompting the retailer to raise its annual earnings outlook to $4.57 to $4.65 per share. While the company plans to plow these funds into price cuts, it simultaneously downgraded its annual sales forecast to $2.93 billion.
Despite these struggles, the company outperformed profit expectations, posting adjusted earnings of $1.42 per share. Investors reacted positively to the news, pushing shares up 5% to $76 in premarket trading. Ollie's is following a strategy similar to Dollar Tree and Dollar General, using government refunds to subsidize lower prices and attract price-sensitive shoppers who are increasingly trading down from traditional grocery chains.
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