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Jules Financial Enterprise

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Ollie’s Bargain stock drops 13% after retailer hit harder by supply-chain snags

Economy, Finance

Shares of Ollie’s Bargain Outlet Holdings Inc. fell more than 13% in the extended session Thursday after the retailer reported lower profit and sales, saying it was hit by “greater-than-anticipated supply-chain headwinds.” Ollie’s said it earned $23.2 million, or 36 cents a share, compared with $45.2 million, or 68 cents a share, in the year-ago period. Adjusted for one-time items, Ollie’s earned 34 cents a share. Sales fell 7.5% to $383.5 million, the company said. Analysts polled by FactSet were looking at consensus EPS of 47 cents on sales of $415 million. “Our third-quarter performance was impacted by greater-than-anticipated supply chain-related headwinds, leading to lower than expected results,” Chief Executive John Swygert said in a statement. These were transitory for the most part and Ollie’s is taking steps to navigate the challenges, but the “pressures have continued to impact our business in the fourth quarter,” he said. Same-store sales fell 15.5%, compared with a 15.3% increase a year ago and a 1.3% drop in the third quarter of fiscal 2019, Ollie’s said. The shares ended the regular trading day up 2.7%.

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