LONDON, UK / ACCESSWIRE / September 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) ("Ollie's"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=OLLI, following the Company's announcement of its second quarter fiscal 2017 financial results on August 29, 2017. The retailer outperformed top- and bottom-line expectations and also provided outlook for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the second quarter ended July 29, 2017, Ollie's net sales jumped 20.5% to $254.6 million compared to $211.3 million in Q2 2016. The increase in net sales was driven by a 4.5% increase in comparable store sales and increased store count compared to the year-ago same period. The Company's revenue exceeded analysts' estimates of $242.8 million.

During Q2 2017, Ollie's gross profit increased 19.6% to $100.2 million compared to $83.8 million in Q2 FY16. The Company's gross margin decreased 30 basis points to 39.4% in the reported quarter from 39.7% in the prior year's comparable quarter. The decrease in gross margin was attributable to decreased merchandise margins partially offset by favorable distribution center and transportation costs as a percentage of net sales.

Ollie's operating income surged 35.6% to $29.8 million in Q2 2017 from $22.0 million in Q2 2016. As a percentage of net sales, the Company's operating income increased 130 basis points to 11.7% in the reported quarter. Excluding $0.3 million of transaction-related expenses incurred in the year-ago corresponding period, Ollie's adjusted operating income increased 34.0% and 120 basis points as a percentage of net sales.

For Q2 2017, Ollie's net income soared 50.1% to $19.7 million, or $0.30 per diluted share, compared to $13.1 million, or $0.21 per diluted share, in Q2 2016. The Company's adjusted net income, which excludes income tax benefits due to the accounting change for stock based compensation in the current year and excluding transaction-related expenses net of taxes in the prior year, increased 34.0% to $17.8 million, or $0.27 per diluted share, in the reported quarter from $13.3 million, or $0.21 per diluted share, in the prior year's comparable quarter. Ollie's earnings beat Wall Street's expectations of $0.25 per share.

Ollie's adjusted EBITDA jumped 31.6% to $34.9 million, or 13.7% of net sales, in Q2 2017 from $26.5 million, or 12.6% of net sales, in Q2 2016.

Balance Sheet and Cash Flow

Ollie's cash balance as of the end of Q2 2017 was $24.8 million compared to $30.7 million at the end of Q2 2016. The Company had no borrowings under its $100.0 million revolving credit facility and $97.6 million of availability under the facility at the end of the reported quarter. Ollie's ended Q2 2017 with total debt of $129.2 million compared to $197.7 million at the end of Q2 2016.

Ollie's inventory at the end of Q2 2017 increased 17.3% to $253.0 million compared to $215.7 million at the end of Q2 2016, primarily due to new store growth and timing of deal flow. The Company's capital expenditures for the reported quarter totaled $5.7 million compared to $5.2 million for the year ago same period.

Store Update

During Q2 2017, Ollie's opened 11 stores and ended the quarter with 250 stores compared to 216 stores at the end of Q2 2016.

Outlook

For the fiscal year ending February 03, 2018, Ollie's is forecasting total net sales in the range of 1.045 billion and $1.052 billion, and comparable store sales growth of 2.0% to 2.5%. The Company is planning opening of 33 to 35 new stores and no planned closures. For FY17, Ollie's is projecting operating income in the band of $127.0 million to $129.0 million and net income per diluted share between $1.23 and $1.26. Excluding the loss on extinguishment of debt and income tax benefits due to the accounting change for stock-based compensation, the Company is estimating adjusted net income per diluted share of $1.16 to $1.19. Ollie's is also anticipating capital expenditures of $18.0 million to $20.0 million.

Stock Performance

On Monday, September 18, 2017, the stock closed the trading session at $46.00, marginally up 0.33% from its previous closing price of $45.85. A total volume of 667.73 thousand shares have exchanged hands. Ollie's Bargain Outlet's stock price skyrocketed 10.44% in the last three months, 42.19% in the past six months, and 85.56% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 61.69%. The stock is trading at a PE ratio of 39.79. At Monday's closing price, the stock's net capitalization stands at $2.79 billion.

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