Third-quarter sales rose 19.1%
Ollie’s Bargain Outlet Holdings (OLLI) reported its third quarter of fiscal 2018 results on December 4. Its sales rose 19.1% to $288.1 million. New store openings and strong comps were the major catalysts behind the rise. Its third-quarter comps were up 4.6% against a 2.1% increase in the corresponding quarter of 2017. The floor coverings, toys, housewares, electronics, and automotive categories performed well in the quarter.
Ollie’s is estimating 37 net new store openings in fiscal 2018. It opened 17 new stores in the third quarter. Its total store count stands at 297 stores in 23 states as of November 3. It has acquired 12 former Toys “R” US locations and leased out six additional Toys “R” US locations.
The company’s loyalty program, called Ollie’s Army, is also aiding its top-line growth. Loyalty members comprise 70% of the total sales. Ollie’s Army had over 8.8 million loyal members at the end of the third quarter. The company introduced the Ollie’s Army mobile app earlier in the year. It also established a tier system that lets the company offer rewards and surprise offers based on individual members’ spending amounts.
For fiscal 2018, Ollie’s expects sales to be in the range of $1.226 billion to $1.231 billion versus the $1.222 billion to $1.227 billion guided earlier. Comps are now anticipated to rise around 3.0% to 3.5% compared to the previously guided range of 2.5% to 3.0% growth.
For the fourth quarter, management expects its comps to grow in the high end of its guided 2% to 3% range.