Discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) reported results in line with analysts' expectations in Q4 CY2023, with revenue up 18% year on year to $648.9 million. On the other hand, the company's full-year revenue guidance of $2.26 billion at the midpoint came in 1.5% below analysts' estimates. It made a non-GAAP profit of $1.23 per share, improving from its profit of $0.84 per share in the same quarter last year.

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Ollie's (OLLI) Q4 CY2023 Highlights:

• Revenue: $648.9 million vs analyst estimates of $649.2 million (small miss)

• EPS (non-GAAP): $1.23 vs analyst estimates of $1.16 (6% beat)

• Management's revenue guidance for the upcoming financial year 2024 is $2.26 billion at the midpoint, missing analyst estimates by 1.5% and implying 7.5% growth (vs 14.9% in FY2023) (EPS guidance for the same period was also below expectations)

• Gross Margin (GAAP): 40.5%, up from 37.6% in the same quarter last year

• Same-Store Sales were up 3.9% year on year (beat vs. expectations of up 3.3% year on year)

• Store Locations: 512 at quarter end, increasing by 44 over the last 12 months

• Market Capitalization: $4.64 billion

“Our record fourth quarter capped off a great year for Ollie’s. For the full fiscal year 2023, we generated record revenues, increased gross margin 370 basis points, and grew adjusted earnings per share by 80%. In addition to our strong financial performance, we also opened our 500th store, entered our 30th state, added a record 3.6 million new Ollie’s Army members, and returned to a pattern of consistent execution and growth,” said John Swygert, President and Chief Executive Officer.

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ:OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Discount General Merchandise Retailer

Broadline discount retailers understand that many shoppers love a good deal, and they focus on providing excellent value to shoppers by selling general merchandise at major discounts. They can do this because of unique purchasing, procurement, and pricing strategies that involve scouring the market for trendy goods or buying excess inventory from manufacturers and other retailers. They then turn around and sell these snacks, paper towels, toys, and myriad other products at highly enticing prices. Despite the unique draw and lure of discounts, these discount retailers must also contend with the secular headwinds of online shopping and challenged retail foot traffic in places like suburban strip malls.