Ollie’s Bargain Outlet has provided its outlook for the second quarter ending August 1, 2020, pointing to strong sales and its ability to keep pace with a surge in demand.
Based on quarter-to-date trends, for the second quarter of fiscal 2020, the company expects the following: total net sales of approximately $515 million; comparable store sales growth of approximately 40%; gross margin of approximately 39%, returning to historical second quarter levels; and operating margin of approximately 16%.
John Swygert, president and CEO, Ollie’s, said, “We are excited about the strength in our business and comparable sales during the second quarter. Our ability to keep pace with the spike in demand and deliver outstanding comparable store sales growth and operating margins is a testament to our organization’s ability to execute at extraordinary levels. I am extremely proud of and thankful for the efforts put forth by our entire organization. Our buyers worked quickly to secure great deals for our customers, our distribution center teams did an amazing job moving product through the supply chain and our store employees worked tirelessly to stock our shelves and serve our customers while maintaining a safe environment. The robust comparable store sales growth has decelerated in recent weeks, tracking in the positive mid-teens, and we expect growth to continue to moderate in the third and fourth quarters. Overall, we believe our performance demonstrates the strength and resiliency of our business model.
Swygert added, “Looking ahead, we remain very well positioned to benefit from the continued disruption in the marketplace. Deal flow is strong and while we can’t control the continued uncertainties related to the impact of COVID-19 or the associated economic stimulus, we will keep doing what we do best; buy cheap and sell cheap, while maintaining discipline in how we operate our business. We remain excited about our long-term opportunities as we continue to leverage the agility of our unique closeout business model and execute our strategic growth plans.”