Shares of Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) cratered in morning trading on Wednesday after the discount closeout retailer chain slashed forecasts.
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The retailer has now forecasted net sales for FY22 in the range of $1.82 billion to $1.83 billion, down from a prior outlook between $1.84 billion and $1.86 billion.
OLLI has now guided for adjusted earnings in the range of $1.57 to $1.62 per share from its earlier expectation between $1.74 and $1.79. This lowered outlook also fell short of analyst’s expectations of earnings of $1.76 per share in FY22.
The company now anticipates comparable store sales to drop in FY22 in the range of 3.8% to 3.3%, a further decline from its prior forecast of a fall between 1.5% and 2.5%.
John Swygert, President and CEO commented, “Although we have seen an improvement in sales trends since October, we are operating in a highly promotional and inflationary environment. Despite these challenging times, we are going to control what we can control, staying laser focused on running a great business.”
Q3 Earnings Also a Miss
OLLI’s Q3 earnings were also a disappointment as it reported adjusted earnings of $0.37 per share while analysts were expecting EPS of $0.4.
Ollie’s total net sales went up 9% year-over-year to $418.1 million in Q3 but still fell short of Street estimates by $10.9 million.
Only three analysts have covered the stock in the past three months with a consensus rating of Moderate Buy based on two Buys and one Sell.