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Ollie’s reports first-quarter drop in net sales
Paula Wolf//June 10, 2022
Citing inflation and other factors that hurt business, Ollie’s Bargain Outlet Holdings Inc. reported a double-digit drop in first-quarter net sales and gross profit.
The Harrisburg-based discount retailer said total net sales decreased 10.1%, to $406.7 million, and gross profit declined 22.6%, to $141.3 million. In addition, comparable store sales fell 17.3% from a year ago; operating income slipped 75.9%; and net income was 77.3% less.
Ollie’s opened nine stores and closed one (in connection with a relocation), ending the first quarter with 439 stores in 29 states. That was a 10.6% higher count than the year before.
“We were pleased with our first-quarter results given that we were up against headwinds including strong stimulus-induced sales a year ago, cooler weather (that) impacted sales of our seasonal products, and a consumer faced with significantly higher inflation, particularly on gas and food,” John Swygert, president and CEO, said in a release. “Our current sales trends have improved meaningfully in the second quarter fueled by increased demand for warm weather seasonal products, combined with our incredible deals and strong inventory position. We are doubling down on our efforts to offer great value as consumers continue to feel inflationary pressures, although we have not yet seen the full benefit of consumers trading down.”
Swygert added, “Looking ahead … we remain confident that our business model can support at least 1,050 stores and that our long-term outlook continues to be intact.”
Ollie’s now projects 2022 total net sales of $1.87 billion to $1.9 billion; comparable store sales of -2% to even; and expects to open 46 to 48 stores, including two relocations.
Paula Wolf is a freelance writer
