Ollie’s Bargain tanks 20% following quarterly results

Shares of American discount retail chain store Ollie’s Bargain (NASDAQ:OLLI) tanks 20% after the company announced weaker than expected 3^rd quarter results. The company missed both its revenue and earnings estimate.

Financial results

The American outlet declared income of $0.34 per diluted share missing consensus estimates of $0.47 per share as compared to $0.65 per diluted share a year ago. Adjusted net income was down 49.07% year over year to $22.0 million from $43.2 million.

Revenue came at $383.5 million, down 7.5% same quarter last year of $414.38 million. The company missed the revenue estimate by 6.49%. The company ended the quarter with $229.7 million cash and cash equivalents, as compared to $325.5 million from same quarter last year.

The lower level of revenue was caused by greater than expected supply chain disruption, which includes delay in shipping of imported seasonal products and distribution centre backlog.

Financial outlook

The company expects net sales to come between $1.762 billion to $1.772 for full-year fiscal 2021, with earnings per shares at $2.30 to $2.35. John Swygert, president and Chief Executive Officer of Ollie’s Bargain:

He continued:

The Board of Directors approved additional $200 million for repurchasing stocks by the Company’s share buyback program. The Board of Directors approved this on November 30, 2021, expiring on December 15, 2023.

So far in the quarter the company has spent $164.7 million to repurchase 2,249,329 common shares and has spent $200.0 million on share buyback year to date. John Swygert: