Why Ollie's Bargain Outlet Raced 13% Higher This Week

Shares of Ollie's Bargain Outlet (NASDAQ: OLLI) jumped 13.2% this week compared to where they closed out last Friday, according to data from S&P Global Market Intelligence, after the discount chain reported first-quarter results that missed analyst expectations on the top and bottom lines.

While that seems like the opposite of what should have happened, Wall Street apparently liked the guidance the retailer offered, leading analysts to raise their price targets on the stock.

Ollie's quarter wasn't pretty. Net sales tumbled 10% to $406.7 million, comparable store sales plummeted 17.3% from the year-ago period, and operating profits were virtually wiped out, falling more than 75% to $17 million. Net profits also evaporated with a 77% dive to $12.5 million, or $0.20 per share.

Source Fool.com