Ollie’s Bargain Outlet maintained its momentum in a strong first quarter, and the off-price and closeout retailer raised its outlook for the remainder of the year.
Net sales increased 17.8% to $324.9 million in the first quarter of fiscal 2019 from $275.7 million in the first quarter of fiscal 2018. The increase in net sales was driven by a 17.4% increase in the number of stores and an 0.8% increase in comparable store sales.
Net income increased 27.1% to $38.7 million, or $0.59 per diluted share, in the first quarter of fiscal 2019 compared to net income of $30.5 million, or $0.46 per diluted share, in the first quarter of fiscal 2018. Diluted earnings per share in the first quarter of fiscal 2019 and fiscal 2018 included a benefit of $0.12 and $0.06, respectively, due to excess tax benefits related to stock-based compensation
The company is raising sales and earnings guidance for the full-year fiscal 2019 to reflect its first quarter results, now estimating total net sales of $1.440 billion to $1.453 billion; comparable store sales growth of 1% to 2%; and the opening of 42 to 44 new stores, with no planned relocations or closures.
Mark Butler, chairman, president and CEO, Ollie’s, said, “We are very pleased with our strong start to 2019. Exceptional new store performance and outstanding deal flow, combined with consistent margins and tight expense control, all contributed to our solid earnings growth in the quarter. This was our 20th consecutive quarter of positive comparable store sales, with broad-based strength across our merchandise categories. New stores continue to fuel double-digit sales growth, demonstrating the strength of our business model. ‘Good Stuff Cheap’ is the founding principle of our business, and with our deal flow as strong as ever we believe we are well-positioned to continue delivering great bargains to our customers and long-term growth to our shareholders.”