The closeout retailer, which is now an IBD Leaderboard stock, has seen strong demand during the coronavirus pandemic, with consumers looking for bargains and getting a boost after the government issued stimulus checks.
Late Tuesday, Ollie's Bargain Outlet released preliminary Q2 results, showing comparable store sales growth of approximately 40%. Full results are due Aug. 27.
Management also expects to post total net sales of approximately $515 million in Q2, which ends Aug. 1. That's well above consensus estimates for $384.5 million.
Gross margin is seen at approximately 39%, a return to historical second quarter levels. Operating margin is seen coming in at approximately 16%.
However, management warned the robust comparable store sales growth has decelerated in recent weeks. The company said it's now tracking in the positive mid-teens, adding that it should continue to moderate in Q3 and Q4.
NET MARGIN ABOUT 10%
1% CAPITAL
Late Tuesday, Ollie's Bargain Outlet released preliminary Q2 results, showing comparable store sales growth of approximately 40%. Full results are due Aug. 27.
Management also expects to post total net sales of approximately $515 million in Q2, which ends Aug. 1. That's well above consensus estimates for $384.5 million.
Gross margin is seen at approximately 39%, a return to historical second quarter levels. Operating margin is seen coming in at approximately 16%.
However, management warned the robust comparable store sales growth has decelerated in recent weeks. The company said it's now tracking in the positive mid-teens, adding that it should continue to moderate in Q3 and Q4.
NET MARGIN ABOUT 10%
1% CAPITAL