Shares of American discount retail chain store Ollie’s Bargain (NASDAQ:OLLI) tanks 20% after the company announced weaker than expected 3rd quarter results. The company missed both its revenue and earnings estimate.
Financial results
The American outlet declared income of $0.34 per diluted share missing consensus estimates of $0.47 per share as compared to $0.65 per diluted share a year ago. Adjusted net income was down 49.07% year over year to $22.0 million from $43.2 million.
Revenue came at $383.5 million, down 7.5% same quarter last year of $414.38 million. The company missed the revenue estimate by 6.49%. The company ended the quarter with $229.7 million cash and cash equivalents, as compared to $325.5 million from same quarter last year.
The lower level of revenue was caused by greater than expected supply chain disruption, which includes delay in shipping of imported seasonal products and distribution centre backlog.
Financial outlook
The company expects net sales to come between $1.762 billion to $1.772 for full-year fiscal 2021, with earnings per shares at $2.30 to $2.35. John Swygert, president and Chief Executive Officer of Ollie’s Bargain:
Despite the near-term challenges, longer term, we remain bullish on the growth opportunities that lie ahead for several reasons.
He continued:
As we look past 2021, we are confident that we will continue to grow well into the future with the significant white space in front of us and deliver strong growth in both our top and bottom lines as we have for almost 40 years
Share repurchase program
The Board of Directors approved additional $200 million for repurchasing stocks by the Company’s share buyback program. The Board of Directors approved this on November 30, 2021, expiring on December 15, 2023.
So far in the quarter the company has spent $164.7 million to repurchase 2,249,329 common shares and has spent $200.0 million on share buyback year to date. John Swygert:
Reflecting confidence in our business, we are pleased to announce that our Board of Directors has authorized an additional $200 million share repurchase program.
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