Pennsylvania-based discount closeout retailer Ollie's Bargain Outlet Holdings, Inc. (OLLI) offers famous brand-name goods and merchandise at drastically reduced prices. OLLI’s stock gained 13.9% over the past five days after the company reported first-quarter fiscal 2022 earnings with an updated second-quarter 2022 outlook. The discount chain expects comparable-store sales ranging from flat to up 3% and a gross margin of roughly 34.5%.
However, the retailer fell short of Wall Street expectations on the top and bottom-line performances. OLLI’s comparable-store sales dropped 17.3% from the prior year's increase of 18.8%. Although the company expects to see a jump in demand for warm weather seasonal products in the second quarter, several headwinds, including consumers grappling with the worst inflation in nearly 40 years and a looming recession, could be a significant signal of concern for the stock. The stock is currently trading 43.8% below its 52-week high of $95.43.
