11:41 AM EST, 12/10/2024 (MT Newswires) -- Ollie's Bargain Outlet's (OLLI) fiscal third-quarter earnings came in ahead of Wall Street's estimates while revenue missed expectations as the discount retailer cut its full-year revenue guidance range.

The company now expects sales of $2.27 billion to $2.28 billion this year, compared with its previous outlook of $2.28 billion to $2.29 billion. The average analyst estimate on FactSet is for revenue of $2.28 billion in the ongoing year. Comparable store sales during the year are expected to rise between 2.7% to 3%, reflecting a lower top end than the previous forecast's 3.2% growth.

The updated guidance ranges for the two metrics can be attributable to an unplanned store closure, the timing of new store openings and third-quarter results, Chief Financial Officer Robert Helm said during an earnings call, according to a FactSet transcript.

Ollie's Bargain Outlet's outlook for the fourth quarter is "largely" unchanged, the company said.

"We have seen a nice acceleration in business over the last several weeks, and we're pleased with our Black Friday weekend sales," Helm told analysts. "We believe that the shorter selling season between Thanksgiving and Christmas could make for a bigger holiday rush in the mid- to late-December period, and our current trend seem to support this. We are locked and loaded with great deals for our customers."

Ollie's Bargain continues to expect adjusted earnings per share between $3.22 and $3.3 for the fiscal year ending Feb. 1. The current consensus on FactSet is for adjusted EPS of $3.27.

Ollie's shares were rising 13% in Tuesday trade.

For the fiscal third quarter, adjusted earnings per share climbed to $0.58 from $0.51 the year before, beating the Street's view of $0.57. Revenue rose 7.8% year over year to $517.4 million for the three months ended Nov. 2 but missed the $518.8 million average analyst estimate on FactSet. Comparable store sales fell 0.5%, while the Street was expecting the metric to rise by 0.2%.

The company opened 24 new stores in the quarter and closed two locations permanently and one temporarily.

"Demand for everyday consumer staples was strong throughout the quarter, and our best-performing categories were food, candy, housewares, and furniture," Helm said. "Consistent with prior trends, we're seeing growth in our younger customer demographic and retention of higher income customers."

Price: 108.56, Change: +10.51, Percent Change: +10.71