Ollie’s Bargain Outlet Holdings, Inc. Crashes 28% Today
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) stock fell over a cliff on Thursday as the company released its quarterly results, which didn’t impress investors in the slightest.
Why was the stock down?
There were a couple of reasons for the sell-off. The first, the company fell short of analyst expectations. Adjusted earnings per share of $0.35 were well below the $0.45 that was being expected. Same-store sales were also down 1.7%, which is a horrible figure to see for a retailer. To top it off and make matters worse, Ollie’s also downgraded its guidance for the fiscal year from its previous estimates.
Overall, there were no shortage of reasons for the drop in price, as it disappointed on many different levels. One of the only positives was that net sales showed improvement, but that wasn’t going to be enough to salvage what’s proven to be a disastrous earnings performance in Q2.
New 52-week low reached
Unsurprisingly, the stock hit a low for the year as a result of the sharp drop in price. However, even with the fall, the stock is only down around 15% year to date. Earlier in the year, it was able to hit over $100, but getting back to those highs may prove to be a big challenge.
There’s still hope that the stock could recover from this, we could even see it rally in the coming days given just how sharp of a sell-off that this has proven to be. It could be a great opportunity for investors to buy on the dip. As easily as a bad earnings report can sink a stock, a good one can lift it back up.
Disclosure: The author of this article does not hold any shares of the stock(s) mentioned in this article. This article is not a substitute for financial advice and this is not intended to persuade investors to buy or sell the stock(s) mentioned. Investors are recommended to seek professional investment advice or do their own analysis before making a stock purchase.