Here's Why Ollie's Bargain Outlet Stock Surged on Wednesday
Shares of discount retail chain Ollie's Bargain Outlet (NASDAQ: OLLI) surged on Wednesday after the company announced financial results for the fiscal fourth quarter of 2022, ended Jan. 28. As of 9:45 a.m. ET, Ollie's stock was up almost 11%.
In 2022, Ollie's had net sales of $1.8 billion, which was only up 4% from 2021. And the gain was entirely due to opening new stores -- same-store sales actually fell 3%. Also, the company's gross margin declined from about 39% to about 36% -- a substantial year-over-year drop. And net income plunged 35% to $103 million. None of this sounds worthy of an 11% jump in the stock price, but there's much more to the story.
Ollie's business performance improved in Q4 compared to 2022 as a whole. In Q4, the company's same-store sales were up 3% from the prior year, gross margin expanded from 36.5% to 37.6%, and net income surged almost 19% to $53 million.
Source Fool.com
