11:05 AM EDT, 06/05/2024 (MT Newswires) -- Ollie's Bargain Outlet (OLLI) posted stronger-than-expected fiscal first-quarter gains on Wednesday and sweetened its outlook for the ongoing year while announcing executive leadership changes.

Revenue rose to $508.8 million for the three months ended May 4 from $459.2 million the year earlier and topped the $506.2 million average analyst estimate on Capital IQ. Comparable sales climbed 3%, outpacing analyst expectations for a roughly 2.7% rise. Shares of the discount retailer rose 8% in Wednesday trade.

Adjusted earnings per share advanced to $0.73 from $0.49 year over year and beat the Wall street view of $0.65. Gross margin expanded by 220 basis points to 41.1% amid lower supply chain costs and higher merchandise margin.

"Our first quarter comparable store sales, total revenue, gross margin, and expenses were all better than expected, demonstrating the strength of our business," Chief Executive John Swygert said in a statement. "Consumers clearly remain under pressure and are seeking value in their purchases."

Swygert has been CEO since December 2019 and will switch to the role of executive chairman in early 2025. Ollie's Bargain Outlet promoted Chief Operating Officer Eric van der Valk to the role of president and said that he will become CEO early next year. Chris Zender, who most recently served as COO of Variety Wholesalers, will join as the discount retailer's new COO on June 17.

"John is having an amazing run with Ollie's," Lead Independent Director Richard Zannino said. "The announced changes are the culmination of John's interest in transitioning to the executive chairman role and a rigorous succession planning process conducted by the board."

Ollie's raised its full-year sales guidance to between $2.26 billion and $2.28 billion from a prior view of $2.25 billion to $2.27 billion. Its same-store sales growth estimate moved to a 1.5% to 2.3% range from 1% to 2% previously. The company now sees adjusted EPS between $3.18 and $3.28, up from $3.10 to $3.20.

The Capital IQ-polled consensus is for revenue of $2.27 billion and normalized EPS of $3.22 in the ongoing year. Eight analysts are modeling for same-store sales growth of 1.8%.

Price: 88.30, Change: +6.26, Percent Change: +7.63