Ollie’s Bargain Outlet Holdings, Inc. shares are trading down on Thursday.

The company reported second-quarter adjusted earnings per share of 99 cents, beating the analyst consensus estimate of 94 cents. Quarterly sales of $679.556 million (+17.5% year over year) outpaced the Street view of $668.437 million.

OLLI stock is trending lower. Track the latest developments here.

Net sales were driven by new store unit growth and an increase in comparable store sales. Comparable store sales increased 5%, driven by the rise in transactions.

Also Read: Dick’s Sporting Goods Q2 Sales Jump 5% On Higher Average Ticket

Gross margin increased 200 basis points to 39.9%. The increase was primarily driven by lower supply chain costs and higher merchandise margin.

“Consumers responded to our compelling assortment of bargains, especially in our consumer staples and seasonal categories,” said Eric van der Valk, president and CEO.

“Ollie’s Army growth was another bright spot in the quarter, headlined by an outstanding response to our reimagined Ollie’s Days event.”

Adjusted EBITDA increased 26.0% to $93.8 million and adjusted EBITDA margin increased 90 basis points to 13.8%.  

Outlook

The company plans to open 85 stores, up from 75 previously, reflecting continued expansion.

Ollie’s Bargain Outlet raised its FY25 adjusted EPS guidance to $3.76–$3.84 from the prior $3.65–$3.75, compared with the analyst estimate of $3.75.

The company also lifted its FY25 sales outlook to $2.631–$2.644 billion, up from $2.579–$2.599 billion, versus the Street estimate of $2.624 billion.

OLLI Price Action: Ollie’s Bargain shares are trading lower by 1.39% to $128.79 at publication on Thursday.

Read Next:

 Hormel Foods Signals Tough Year Ahead As CEO Concedes Profit Recovery Will Lag