Ollie’s Bargain Outlet falls short of expectations in Q2

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In its Q2 earnings report, Ollie’s Bargain Outlet($NASDAQ:OLLI) fell short of expectations, posting Non-GAAP EPS of $0.22, missing the consensus estimate by $0.11. Revenue also missed estimates, coming in at $452.48M, missing by $4.95M. It’s not clear yet how this will affect Ollie’s Bargain Outlet in the long term, but it’s certainly not a good sign. If the company continues to miss earnings estimates, it could see its stock price suffer and its earnings take a hit.

Share Price

On Thursday, shares of Ollie’s Bargain Outlet Holdings, Inc opened at $52.90 and closed at $54.80. The company attributed the shortfall to “negative store traffic and customer purchasing patterns” in the second quarter.

VI Analysis

The company’s fundamentals reflect its long term potential. The VI app makes it easy to see that OLLIE’S BARGAIN OUTLET is strong in asset, profitability, and medium in growth. However, it is weak in dividend. This means that it is a company that is rich in assets after deducting liabilities. Such companies are deemed to be less risky as the intrinsic value is pegged to its assets. This means that it is capable of sustaining future operations in times of crisis.

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Summary

Comparable store sales also declined during the quarter. Ollie’s Bargain Outlet has been able to partially offset the sales declines with cost-cutting measures, but these have not been enough to offset the overall impact of the pandemic. Given the uncertain outlook for the near-term, Ollie’s Bargain Outlet is not providing guidance for the full fiscal year. However, the company did say that it expects sales and earnings to be significantly lower in the second half of the year compared to the first half. Given the challenges facing the company, investors may want to avoid Ollie’s Bargain Outlet at this time.