OLLI - Earnings call transcript Q1 2021 | Ollie's Bargain Outlet Holdings, Inc.

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Operator

Good afternoon and welcome to the Ollie’s Bargain Outlet Conference Call to discuss Financial Results for the First Quarter of Fiscal 2021. [Operator Instructions] Please be advised that reproduction of this call in whole or in part is not permitted without written or authorization from Ollie’s. And as a reminder, this call is being recorded.

On the call today from management are John Swygert, President and Chief Executive Officer and Jay Stasz, Senior Vice President and Chief Financial Officer. I will now turn the call over to Jean Fontana, Investor Relations to get started. ma’am. ahead, go Please

Jean Fontana

the on good management’s results A and and today’s was press contain but be to found of and company’s of the I limited forward-looking the on website. Any future from to, that estimates actual a XXXX. Securities release this Private not or company’s that materially want our results of in be Reform including, can meaning including statements, financial issued those considered items, everyone release Act Relations afternoon expectations mentioned call. such you to section within press with the of differ that everyone. remind could covering copy Investor predictions, the Litigation remarks Thank forward-looking this respect may afternoon statements should performance call

on discussed should future control our future are obligation undertake Form forward-looking a report our and not as well and you We release XX-Q our detailed earlier our more these XX-K of statements, Form reports undue as annual which quarterly update we be results any to on information on description place or for You filings, only these and might earnings SEC no to review for factors. encourage issued in in affect including filings. today these of Factors them that new not today reliance may as speak events. revise or

our over GAAP will With to to release. we I of our non-GAAP turn referring Reconciliations financial maybe be operating non-GAAP John. We will comparable included that, the measures investors most are the call measures to certain assess measures closely call in financial the believe today’s to earnings financial important to on that performance.

John Swygert

year. incredible and hello the are and strong we quarter excited another today. joining Jean delivered start about call to everyone. our very Thanks, We our for Thanks

shopping my entire to family. Our possible and I resilience exceptional the execution express by customers gratitude tireless while serve work made remarkable to for a of Ollie’s our results environment. safe were their want the maintaining

performance and fueled to income. capture increased a opportunities sales robust tailwinds, our a XX.X% comparable resulting in was growth, The great of and in Our Productive the stack reflecting round our store great strong driven a operating line sales store our deals increase top overall XX.X% by drove sales flow of performance. in strong in increase X-year such deal XX.X%, third very Comp government as marketplace. stores new combination stimulus macro fueled quarter of the and the our by ability in XX.X%.

broad-based Our continues with as departments deliver merchant our top across customers. positive team XX XX to of line strength was throughout the the store categories, for values our great comping merchandise our

laser our Our toys. books remain we strong begins provide and deals of is bath, that disruption incredible merchandise continue. that and value top Market which bed garden, electronics, We flooring, on performing execution our our expect deal and with all plans, driving of the categories. customers departments across flow, lawn our included and to focused deals, to amazing

large give great partnerships to competitive vendor us of Our gain long-standing buying team’s a preferred and deep offerings deals, and advantage small.

and size with success, new of Our vendors. is buying a also fueling host scale opportunities

to the deals it these the to position happen. each take dry of liquidity opportunities have financial to and And the we know-how day. advantage with we and buy capture every make powder well-positioned are to great and open strong We see our

with In to last we terms comfortable X.X% of inventory are on-hand Indian up year. position, inventory, compared our

ever, is as and strong as remains there of flowing. flow deal product lots mentioned, I As

nimble quickly of responsive to on trends our highlights operational and sauce. We us flexibility our model It opportunistic are to chase is positioned well gives This know-how capitalize drives business and purchases. the the the flexibility as secret to success dry capabilities. in powder and our respond business

Earlier Springfield, continue stores Vermont. demonstrating in consistency knock we the our XXXth park, our it to portability opening predictability, expectations store model. of the our performing month, and of of and out new again, Our this once above celebrated the grand

thrilled major year, returns. are X are our our expanding to milestone as have to growth and in entered store, and opening of of X engine our the states stores states Vermont, new new of Since hit XX total. a Kansas, for We we XXXth states the shareholder states additional Missouri of into the this total the

to and nationwide. between base this expand are per year. a to year, store see expect on XX openings to well X,XXX our We XX way. runway the are targeting including currently tremendous for locations relocations We We potential our we XX new ceiling over with store X growth a stores

customers The Members over to members, of high new deals. are look levels. gain very unit ensures to demonstrated of of growth growth Ollie’s with benefits quarter. as space Ollie’s new disciplined the period more perpetuate proposition growth, and growth ever great importance quarter, Army course, sales highly business of value the just relationships high-return availability and in Ollie’s every the growing. each our feel model million to of sites. with Army membership to to outpacing extreme great enable in with and, money value spend in driver us, delivering highest We record productive XX.X%, with penetration our rate of in membership culture longstanding the coupled of high-quality team through XX% special we active significant shop We Army build achieve the about the levels sales ended traction. white store. retention and a us strong the of by continued our greatly achievement whom our our frequently members over plans Army that our the of supports Our and approach year-over-year grew of sales unit more with as continues members. by much customers store the keeps These be the XX.X The quarter continue significant and total the enrollment us

costs, headwinds that chain challenges supply industry We shipping to continue labor and impacting delays to are retailers. all see related

We positioning. can and with pressures our what to we current are mitigate we doing comfortable cost remain

fill we we we working are If strong in results. pressure, some we open could to deliver another in operating diligently and our headwinds margin to experience distribution centers front, fiscal great hiring line and these our to market. are make had ability but bottom are competitive the a cost We On confident additional adjustments highly in XXXX. continue, recognize a quarter and and stores strong start positions

period open. as Looking our as reminder, delivered to we onset the second last during were at able our remain COVID record quarter, profits and year, this following of a sales stores

XX% and quarter quarter. XXXX, month our of by Quarter-to-date, in May, second excited far, the momentum sales with store very being the grew in am with our comp business. strongest about trends very I the pleased current Our in the

we We considerably quarter. are of comp and through tracking ahead our as progress comparisons year the expectations ease prior

and support President to on deep the success. continue this real expertise knowledge and and operations, of investments Officer. will to excited board. our growth. growth plans teams, important protection Chief and der his be We Eric space we of family, make the are with to and to future that retail hiring the asset will supply operations month, discount of Executive execution We announced to help position the estate chain, store supply areas, we drive Welcome believe Ollie’s to lead van store Operating and of Vice instrumental Earlier Valk chain Eric continued including the across Eric. him key functional our have the

Buy business. do and operate always, best. we doing continued positioned unique can the the we about are As execute cheap and business to plans. agility discipline our as maintaining of believe we our our marketplace. while We control efforts focus in closeout model benefit opportunities and continue what to well keep we in optimistic will we from we on strategic sell disruption cheap, drivers the I incredibly the our remain how growth leverage long-term

algorithm want of X,XXX challenging growth the Ollie’s, and of our dedication contributions terrific I am intact, I year to ongoing team very as about our in this to incredible am and for almost for our members persevere thank long-term our as and ahead, as business. and work ever execute the their environment. was a business. we bullish to I the team Looking This proud start remains

we will to I hand take now through call the to financial As Jay the over we Ollie’s. results. you are say,

Jay Stasz

team good John have and want their first the afternoon incredible Ollie’s the Thanks, made and Eric. on extend you that great everyone. want I for to warm teamwork It’s I dedication a entire Ollie’s also a thanking success. by welcome to to to such team. the start quarter

are another delivered thrilled outstanding to We quarter. have

supply continued transactions stores and stores and $XXX.X XXX our Since and sales our XX. the was we expenses due the offset Gross merchandise by sales than million. ending XX.X% higher XX XXX to income XX.X%. additional $XXX.X and in For excludes in in and to by expenses in basket. control. $XX.X increase new X increased XX.X%. XX.X% cash. million our of XX.X% due SG&A tax increased expected. count. sales in $X.X new new to million with basis $XX.X million year. margin drove XX the $XX.X X including These XX.X% as to stores, their for had for XX.X% share. under outstanding share At the increased upped with X prior diluted borrowings increased de-leveraging This the year-over-year increased million, of of revolving ROI margin this totaled increased of earnings to are Capital first state our XX.X%. $XXX a existing fueled to points and Adjusted the a opened to to basis XX.X% In our the in due driven margin as the to increases stores. costs stores stores, The count other SG&A this states, partially basis in new was to adjusted higher performance productive relocations, XX.X% leverage and increased increased a drive pleased pay we selling EBITDA in benefits stores related the increased gross increased and in years. chain tight comps quarter, XX.X% of themselves costs, $XXX to period to to compensation, to million. new $X.XX in to we’ve stores primarily productivity credit net variable sales. transportation to Operating XX for store and with Adjusted expenditures basis increase payroll, sales strong flow, end points we income, profit due very significant increases expense both increased primarily margin support and percentage to points payroll points The increase million, to store EBITDA XXX per less improvement and quarter. deal year, stock-based in from our XX and period, by quarter, decreased total in the expenses Great quarter, the opened first facility Operating which net selling net in million, another no $XX.X the quarter margin, growth, for as XX.X% increase. occupancy compares store Comparable and strong primarily XX.X% XXX quarter, Adjusted million the per improvement many expenses average $XXX.X end million.

a shares of good programmatic $XX cash have shares. back and track to to of we build stock record our increasing Year-to-date, our position. our is our generation repurchase to year, cash plan our allowing cash growth cash both shareholder and fund we opportunistic value. and to buy our of to million us strategically flow manner, almost model, in the to deploy proven invested our a Our to robust This testament on strength use putting hand continue

time, optimistic in providing momentum are prospects at We limited and share on very guidance this about but remainder the environment, will will business of high-level the specific not thoughts some fiscal ‘XX. this our I visibility long-term we of the given be

the as with results the progress second continue are comparisons we better-than-expected getting as than of sales and saw to third year, comp we lapped easier Comp the Our last as all the comparisons quarter. year although perform from economic are stimulus. highest fourth challenging line at tracking levels quarter last quarter benefits quarter, second we unprecedented sales we top through from less in weeks

increased impacting We continued ongoing in and gross pressures due the transportation retailers margin chain headwinds costs. are labor including to supply all anticipating

to headwinds we We these create both hard are merchandise navigating and to margin operations focused very in financial will impact. opportunities on DC their work and mitigate

original we such, gross As our to with the year. are XX.X% margin of plan sticking for XX.X%

relocations. Our stores, current of plans following: include the the opening including XX X

and permitting of halves of achieve local we dependent XX% are XX.X%, and average We excludes XX%, approximately stock-based that related XX.X between any buybacks. the million approximately construction second compensation diluted which are outstanding expecting the from tax can benefits target, before first year. We effective timing. tax share rate on future of of we of the a confident weighted to shares openings split An our but and feel impacts

to continue position keep to operating will future. to the marketplace for It’s of financial we now that us always, our excited and back our evaluate the Q&A and As opportunities session. growth the plans call to as effectiveness strong model, the our turn the long-term nimble Operator? I will necessary. the operator start respond

Operator

Instructions] Thank Boss Matthew question first [Operator Our with from you. comes JPMorgan.

your You with may proceed question.

Matthew Boss

quarter on again, really a congrats and nice Thanks guys.

Jay Stasz

Thanks, Matt.

John Swygert

Matt. Thanks,

Matthew Boss

could business we you guess stand bit, just first could on history, algorithm could maybe cited And in toughest you question share be a close points momentum John stack, it what we the think held Anything think exit that availability, speak second, top where against to larger underlying as pandemic? low monthly company’s elaborate then has which out May. the I help the X-year you the So, is, my the a helpful? if was in I picture, I today? line to to single-digit out would at just little comp you has least compare

John Swygert

to Sure, the There is rumbling closeout is there furthest you from has from that’s least I I truth. out the from of regards can availability. at lack there Ollie’s tell of been there the that With perspective, a world, a Matt. our know tightness closeouts. industry,

good which is are Our the no there, else any I marketplace you, are are perspective. now issue out there out the the having tablets, on category I tell add more going tell availability than of being everything of we an is X-year we’re because our forward. I think I going continue we’re overall And of from to the we’re and much very past, give tell very continue would merchants to what I very, we sales, in lot abundance very excited about positioned. there the you, what very more mentioned color opportunities other the is a to in as go was definitely regards in where for current our am very, And selective in but so little indication seen chlorine taking to they buyers our would without to flowing but us feel what The quarter-to-date. not well. so seeing With And will I we you you ahead have are definitely we of far expectations. And long-term we give are basis, we a a could algo a stack ahead on disruption doubt. quarter,

Matthew Boss

impressive? maybe up outcomes the then follow how versus for Okay, industry you that XX.X% you based to to for and margin of maybe in gross the great. I think just range freight margin year, a XX.X% quarter margin guess, holding are the the So And from what gross the we on year, about holding pretty gross to to-date? confidence is distribution based me, margin, merchandise have to for second everything seen in hearing across on provides best what the on

Jay Stasz

keep retail. Matt, Jay But transportation the Yes. might are everybody buy increasing us, we are the keep also the I said, both we dollars. just we always getting start XX.X% mind certain will side want increasing like the we in. better always work we giving would to price labor going on and by better this out say, are we for in on pricing side, the to just And pull the on follower, can getting cut prices I be else sticking are on and in are there. that merchandise And can a to guidance. to can focus pricing. costs XX.X% more as But side work we levers and chime though if year. buys, we and the the side, to the right, But always, can DC there and to the we for is side, to productive – not that we as John And side have maintain on on costs and our SG&A seeing you work are not can a price We setter consumer. we value

I talk we are to going – And so about we not quarter. not am – by

I think the sticks. laid time we way it still out last

on target. of We are margin XX.X% cost the come and a going next it. would We sticking hard would couple pressure to basis do that could chain, supply say, quarters, to because more for XX.X% year expect And hit we we us the to to on of to in the see back that just again, year. our that to are work I full on increased but

John Swygert

the to Matt, buy these obviously to have. do the that Yes. that in the we cost pressures way is closeout of opportunities We add would thing only sector. I we some have offset

it’s year. in So more go. quarters We early just finished three first to still quarter, the the

cost pressures there out So, lot a all us. of there for are of

are I best to think to offset do to positioned that. well our we try

later work expectations are we As XX.X% may can are but and with our the right plans we year color our get can do make original sticking land, that. more that and the set going hardest think on have we where do now, at to XX.X%, in there sure out to we we and we – we our we

Matthew Boss

luck. of Best again. Congrats Perfect.

Jay Stasz

Thanks, Matt.

John Swygert

Thanks, Matt.

Operator

Thank you.

question from Konik next Randy comes Jefferies. with Our

proceed may You question. with your

Randy Konik

lot. Yes, thanks a

I in guess, expense the quarter. had one, questions. leverage you two nice So, really

of COVID. been lot of We during them that. coming a more and have companies out base about do a have of pruning lot expense COVID seen to the And be talking lean able becoming

the of – what more you leverage the working on or have more team, some enhancements possibly a then base guess, sustainable wanted if on sustainable of on not just expense of just years. X that’s there? or are term and second, to of are expense you the relationships you about think to or the What to XX to get help new working So, your point? And team get just lower think buying sense and get in guys just you categories the next is for strategies curious leverage establish Thanks. into terms or think John, about I enhancing ability you do how that kind longer can what some are different

John Swygert

that answer go me let team, – Randy, have the would leverage. always let the And to first SG&A are regards you always to merchant With I to invest Jay the team. will back one continue and been tell into and we

As you with years successful know, and operate pretty continue we successful XX the we be we have business model been to for in.

think figured inconvenience I got really which pretty closeout much we we have business. and call out we on So business, heavily the the the mousetrap focus

are will strategies we are we into far. continue our going merchandise focusing it, So, in on better a regards I categories. definitely We done category some call to have We to lot is do so than to could team. enhancements we the think something potential definitely invest what or with pet

to and talent some are just and we real closeout are a with them we build right outside So to our internal the continue of to will enhancing being definitely people We continue our out covered going to buy to sourcing business strategies and we teach invest have invest deals retailer, into. committed we continue well. we do look categories we team continue think we look be into it’s that. to a to pet the as closeout how And into matter and want most now, to now, departments. hardline that broad-based But

well. been strategy going thing. many what we same very do are We that we to doing and to continue So works think for that’s have years the

Jay Stasz

this Yes. is And Randy, Jay.

there expenses, us the no the is really overall from model. I change On mean for

We and like we an to the points way have very spend. point to point kept always comp. run lean it, eye had mean, have started question, always we of leverage that kind about you talked And of X a every about we dollar X.X I on the

COVID. not I We new don’t a million for savings quarter. or $X.X premium had lot, identified but new the pay in methods $XX first did So because incur that year, last COVID-related probably the year, of we million savings know great

So biggest overall and payroll anniversary no do costs would some our said, But we And That’s just DC, not to on I are the very We the a pay would we – our we front, environment, that expect leverage point. address of really And the our levered at quarter. sales say, store of we it’s also I we not market we like leverage those. a like would the in competitive the expect fixed function levered obviously only performance. one, the on we great in to at on we change being first like occupancy got market. probably having strong have this but think to. mean, the like stores. to by

So giving plan the market year the in to sales widespread store about the at yes, SG&A level, market. the XX% of we are have had rest not guidance. are the first generally, throughout the – X% rate comp. of of leverage about basis. sticking of kind X.X% by news to And going we quarter, are wages are not talked we normalized just But that on the obviously, good in – some a we realized to of to had those we reinvest call an at increase kind first just but continue last on in But to some we annual could quarter but we not are we We we it. to savings again, what sticking as was a that

Randy Konik

guys. Thanks, Perfect.

John Swygert

Randy. Thanks, Sure.

Jay Stasz

Thanks, Randy.

Operator

you. Thank

Thomas Our from comes Brad next KeyBanc with Capital question Markets.

may your proceed You with question.

Brad Thomas

different their the the year what from that shopping new you the customers? then in than more color as patterns be over some more some little you seeing, traffic seeing afternoon. us are brought analyze about Nice the members, some might Wanted ask of Ollie’s of you course the Army’s are customers Thanks. how And bit that Thanks. about ticket and to give about of and you Good legacy of patterns have a quarter. could spending data last trends? you

John Swygert

from speak Sure, We counters. Brad. and I Hey, good the the transactions to hear have can to traffic don’t you. basket. average

So, transactions. measure we

And came a so transaction big the in both really from the unit basket the average comp About and increase robust. XX% XX.X% average for side our the increase and retail the there. very came of saw from in were quarter, we remainder

Jay Stasz

Yes. Brad, and versus regards but we going the with maintaining that XX%, but gone about Army Ollie’s old Ollie’s to customer the XX% you size. for up still non-Ollie’s spend not Army, break a to the are sign-ups we terms the would year-over-year, over out new basket overall the tell sign-ups, Army customer spread the has of it’s in basket

they more into us. when they for shop spending come So, are definitely

said XX.X% the strong earlier, We are of overall to Army XX% we Army. members as and XX.X very sales over our is seeing, the million increase from active coming in a

are We about excited very that.

telling what increase. that’s the Ollie’s we that is So, us membership are up and working Army doing to get

consistent but very seeing odd, with seeing it’s patterns are very, we – Army So, the we pretty are overall year-over-year.

other very, else how the is very spend, are which static look when is year-over-year performing. overall than the frequency at the the customers So, we Everything comparable pretty up. is

Brad Thomas

I labor good helpful. all market if obviously what’s and environment are with bit people? speak to to dealing was Very you And John, retain how and tough hire very you the wondering a could

John Swygert

has and into. been very, segments. supply competitive two hire to is One the be break continues very will supply I into chain challenging to store up chain one on the distribution and and center The front. Brad, is very distribution Sure.

as to traction all most changes of made catching be be them into overall some some working. it associates, three to We which bonuses appears point being invest recently distribution to this well appears to sign-on at the and offering and have centers, the

which working So the thing retention when retain on you and to in. factor, new be is them the key critical are we is the able next to associates bring

work on associates, those we’re get because time. much over a positive and don’t controlling create of amount of too lot over So the make continuing folks to the to time they work want environment for working a

but we’re market fast. globally. burn on totally, network to more little not It’s stores DC not trying focused driven. we’re too out A the really is But necessarily competitive, bit So getting stores. different, them it’s

made having to the get we on adjustments So did on recently, building. markets appropriate hiring May the a and store which day, continue at include and and And hiring very, this on And little day another XX, and which us making we very look DCs actually be to going and bit which to running where is that a the we’re national one plan associates few a the national on stores. all will June when was more at planned actually into out row, as more well to a a focusing think we’re response we XX, better time period that we’re see Most were I we we’re quite in able a had to our ducks and the successful going comes little around. in very more to as us. challenging hiring, much actually get will employees excited, more for hire level,

a to work when them us. to just and So each push, we’re keep continue them most by try importantly, going evaluate to and them folks for good and to environment appreciate hire continue they work the market giving

Brad Thomas

much. so you Thank helpful. Very

John Swygert

Thanks Brad.

Jay Stasz

Brad. Thanks

Operator

next Capital Markets. Our with Ciccarelli RBC comes from Scot question

You your proceed question. may with

Scot Ciccarelli

if your John, comp the what of simply had can it, you’re expectation guys. business? the thinking we can try tell of the you you us Hey, quarter understand been baseline about kind can so how started, before just

John Swygert

QX? For

Scot Ciccarelli

sir. Yes,

John Swygert

Yes.

any color That give that, you not base guidance to we giving going on not just Scot. quarter. for the We’re is

this not very, obviously But good give where your at we we point guys we’re So really to And guys much we Street’s we relative are at, going sit that obviously, the more have running where feel internal you and than know – how baseline. very expectations. and color in you time. to our

Jay Stasz

people I way mean quarter, framework those the sticking that’s Scot, just on that out and changes. the I the pretty concepts benchmarks And I think that. we’re and we and kind call talked we’re laid would about models, of any consistent, add their Yes. last making to – not

Scot Ciccarelli

Presumably, some transactions the Okay. those talked increases maybe about because transact to or it’s Can’t to but of at Obviously, you past Ollie’s again? blame customers. lot maintain do have guys new of sign of a able customers right? had details color for and other just growth they year. Unlike some or up you is material they of over kind in regarding pretty a guys were Army, you add they your any don’t in, come retailers, trying, you bunch you just ability have the it

John Swygert

isolated, sticky And than from liked as higher this, bit that which sign-ups new experience tells control just – sign-ups back. call tried in, the us, group. XXXX in has little they the more Scot, a what XXXX what been rate have XXXX a XXXX normal we I’ll the came they They group QX the come one-and-done are it, the control We is that – versus we’ve the XXXX QX a weren’t than at us year. group, to a and continuing they they seen

pretty like to getting what and been in the we’ve back box seen like. coming So what looks feel we’ve time keeping them relative them successful we period in of normal

Scot Ciccarelli

Thanks, it. got guys. Okay,

John Swygert

Thank you.

Jay Stasz

Thanks, Scot.

Operator

you. Thank

with comes question Goldman next Sachs. Chandni Our from Luthra

question. with You proceed may your

Chandni Luthra

afternoon. Goldman This from good and is quarter. Hi, on great congratulations Chandni a

John Swygert

you. Thank

Jay Stasz

you. Thank

Chandni Luthra

your seeing be would of color Yes, great. And deal could the guys you if on are of others course. That you give categories than disruptions some that’s more aiding some where us flow.

John Swygert

product terms very, There Yes, we’re to of in is is the in that With shortage seeing we’re broad any of what John. flow, very, we’re that no based. Chandni, this – category deal regards seeing sourcing. very

the luggage the, we that you is and world. luggage in play very I’ll a buy. private-label closeouts it, very, There in lot category luggage, a small don’t really have not in of We call

a now. would that lot housewares, of aids, bath. would the see right be area in a we don’t of the beauty deal health the But and seeing be domestics activity and bed aids, So one ton we’re for

We’re category. the seeing book good activity in

it seeing broad seeing based from on perspective. flow we’re what we’re So real the

So any any are our of in not merchants shortage product on category.

Chandni Luthra

Got couple it. color, And you’ve That’s touch for that upon perhaps helpful program you working your been of you. now. marketing quarters thank could a

existing share and eyeballs potential to – getting perhaps new more bigger grabbing members, wallet is trying more with how your getting to contributing understand customers. much also of you helping a that Just Army then with

John Swygert

Yes.

away from what more and to print marketing a we world. the We working advertising bit call are going going transforming really the on digital department little

with Army on been We key card side. the to We’ve have But testing the back lost strategy year, adding e-mail marketing the been digital with, year. working a the we I’ll that. bit call continue still for That’s Group, this add which here world, a our going to just with credit of and some testing of YouTube, with the testing the in of doing contract We’ve to driver. to with Cardlytics signed and to us us. help that. perspective doing it, back have more been them call And of quarter going bring influencers. customers testing, we’re benefits I it, digital second our in going store. with the print the searches not last store We’re to a little away Google, think a We doing been from some Ollie’s starting Sasha then Pinterest, paid we’ve not from go StitcherAds benefits started the to really, some be just to some is we’re in because Facebook who folks doing use

to do testing retail with We’re me some looking not.

with So a not now, to there of most in – effective. pipeline complete is necessarily see tests our of is we totally have we are which right what lot is things the but all the

it’s well. that we’re as out to three traction always a noisy, still and a little within get Chandni, little know, adding The bit think call pretty digital to be seeing flare of stimulus been may number I little good. being it our our bit I’ll with print regards the a there. box, just you more and I don’t a who stimulus, as mousetrap advertising think getting folks has But

I to need really settle the So right Because everything. down in things evaluate look really tell to very, now, marketplace we very would smart. we you, very,

Chandni Luthra

Great. Thank you.

John Swygert

Thank you.

Jay Stasz

Thanks.

Operator

Thank you.

next comes Sandler. with Piper Peter Our Keith question from

You may your question. proceed with

Bobby Friedner

taking good guys. on for questions. Bobby my Thanks Hey, It’s Peter. Friedner afternoon for

sales want follow-up from outlook try coming on and Just out different to angle. the and a

of kind X-year with XX% posted That’s line historical this X-year on in quarter. been levels. your growth a basis, So about growth

that year? said give take, XX% on couple the You of rest this ahead points you running for reason, can’t of sustain level, the is there expectations. May average, any or of Is a

John Swygert

every Is quarter? going stimulus continue single to

Bobby Friedner

not the magnitude. in same have You – a July,

John Swygert

comp. comping number, with to don’t say continue don’t that expect why Yes. been Bobby, out – the clear not not and we’ve and to expected to – have do we any comp year We XX% I have a level we’re that pretty would I not planned well. at compared as to and that

pretty I and that and numbers, tell but almost was to X% X And X, that, some XX% up still is Qs you do QX. would that. up and in So change be there able that a would be large stretch easing far in to

due result So the not which it expectations QX I baked outlook to changed and stimulus our obviously, think into in the QX, of middle March. had of starting that have

remaining what’s with pretty run at the planned beginning of business to current as the our at originally the So and year. we we we are feel expectations where continue confident

Jay Stasz

that react the ahead I But going about very, in us. – Yes. to business just expectations. would QX we’re we’ve with so us. and ahead business our very trends where stick weeks a just is said, feel to the And the lot QX Bobby, and like are in the And momentum market. always, say, of say, strong far got the is our big great Mark performance of would of like a obviously, and to ability We

We’re going to all we deliver can.

turn registers. We’re off not to going the

how going to yes, We’re manage we not we’re prudent these expenses. in But updating guidance. be

to of going beat what it. we We’re have kind stick try to with and

Bobby Friedner

Okay.

in of trends this outdoor feel lot and wondering have about inventories up those you summer one you your retailers year, spring a categories? outdoor talking Sounds year-on-year more, merchandise good. to about and continuing plan this Maybe how strong year do

John Swygert

Yes.

and stuff our But – lawn definitely you, in I a patty of that outdoor believe time as in, summer There get is, I think two tell lot are think probably from good we positioned. there perspective, positioned retailers garden, summer to and well we would pretty categories we it, there. furniture result the and I And the think feel some delays we and will those well well. see areas. seeing we’re we and we’re are we earlier, garden in good lawn think about the And mentioned are is other season. as I for the

Bobby Friedner

lot Alright. Thanks guys. a

John Swygert

Thanks, Bobby.

Operator

you. Thank

Our Morgan with Stanley. Gutman next question comes from Simeon

your proceed with question. You may

Unidentified Analyst

first This wanted just afternoon. comps? us the Hey, just afternoon. on ask on I cadence month is for quarter. good Could this by [indiscernible] the give for you Simeon maybe to

John Swygert

were break No. very had right delays was the Texas. just We quarter, bit hit of second momentum. good, little a in – some the given lighter was the certainly, because continued strong very was April a bit than storms maybe that don’t March very tax refunds there we and expectations was consistent out cadence with the by and mean, into ahead month. in I in that’s little and then stimulus our the maybe expectations, it February quarter. April our

Unidentified Analyst

Okay.

John Swygert

Yes. thing nature. call, mid-single as digits or in on The was would go something back I or mentioned XX XX is, only our around we the were we think March when I we it – call on had that

So can mid-single a go XX.X%. digits the from an to you get kind of to land of lay up

April last of stimulus of March started momentum middle up good XXXX. April had middle then of we of pretty that after the middle that through against year the went in the we have the We

from to some there nice April. of middle of March middle is basically runway So

Unidentified Analyst

commented or sort X-year ahead flat, sales could the then, Okay. on per that of of or running down That are give is you that store that imply color the there John, store range any you sales per earlier in long-term up, as basis? May Does sense. running of I a think that well there makes algo. is sort And we from is

John Swygert

No.

coming We XX.X% already performed can’t a sitting and – where today sitting QX, give but last It’s you good we a off I feel up That’s would clearly. an from so going is be we’re our pretty more color obviously – battle, what we are of to comping the today. said basis comp from tell as expectations. good to we’re far – uphill feeling XX.X% how not additional definitely you We against a we’ve large done. we’re X-year we’ve – than where on going we’re what we very very year. we And compared pretty are

Unidentified Analyst

appreciate it, Okay, Thank guys. you.

John Swygert

Yes, thanks.

Operator

you. Thank

Craig-Hallum Jeremy with Our Hamblin next from Capital. question comes

question. your with proceed may You

Jeremy Hamblin

on execution. congrats and and performance the Thanks tremendous

me Let question your private a start sales. with about label

XX% sales I QX. of in think it like was

of some what the going and label Given disruption the QX you in private expectation on and supply the QX? and chain in did balance do so year? what’s for forth, What’s ports

John Swygert

a in discussing Yes. we talked Jeremy, doubt label I we’ve don’t did as what sales. recall ever that company. ever private really We about

really margin That’s that comes business overall about on and value than really not private have of label we That’s Closeouts from a may XX% don’t ours XX% are closeouts. of business XX% a we – goods a the we sales. disclose people in neutral. are focus of everyday our really basis. label how and sometimes But us margin margin terms analyze lot drivers, think disclosed private-label private So from about quarter-to-quarter to our private-label comes of a goods. it’s better

perspective. that report little really we our not counterintuitive on. from So an it’s focus or on But or at look that’s area a

Jeremy Hamblin

enough. Fair

about your question a which ask then me Let buybacks, accelerated. you have

on You sheet. of balance just cash the have a tremendous amount

like expand not Is or on the whether manage cash think the still that could some rest the overnight, buyback of you you’ve potentially asset? or either of I you’d discussion your you concept. program dividend? a there on have of executed order a on of I buyback thought, amount Xx the your sheet. the an that and around special just had ever if amount do growth balance cash productive sheet enormous But balance that how such we make something know do

Jay Stasz

there lean – to now, be be to if to to Board. and And does, run. walk, is going right obviously, use be Yes. and Ollie’s also the to get mean is just mean, we before And like I program, Jay, a we Jeremy, and anything to use speak want I we into the cash But like And call, that’s the to this that to of to think excess balance to buyback just point, million to said thinking cash, standpoint. to would we building know, walk and of we the cash. on authorized on the our we consistently. million the But you is be way that I cash into million I’ll little you and long-term market that we to a $XXX we’re keep we’re the operating that’s think we bit, But we subject buyback a what we’ve like $XXX the what sheet. think we said, use our out value. lever lean got continue crawl as for an vehicle that’s before sheet going your quite best opportunistic, are is from it. we cash. like sizable to it’s $XXX by up think amount on want excess probably right want And going shareholder balance

you give So towards about work I else. on we’re next you going go we the the of have in before mind, it’s will can to the balance way or in anything million. to million the something we we $XXX I And And special year But cash for the a don’t would are two, buybacks balance dividend or going sheet into be a I $XXX to talk – tell number absolutely over every lean long-term my year, but quarter. it. and that

Jeremy Hamblin

wishes. guys. Best job. Great Thanks,

John Swygert

Thanks, Jeremy.

Operator

Thank you.

from with Rick Nelson comes question next Stephens. Our

You may question. your proceed with

Rick Nelson

better good those you to have you’re to what’s the afternoon John, on Are my happening about you year. along there. past? start market. locations there in congrats the And and rent like than Are lines? talk deals better good and seeing the real I’d getting estate today? Thanks What out

John Swygert

the Rick, Yes. second-generation real in, a lot would and estate opportunities sites. you of tell operate we for I market that is availability there

– rates. near ever, opportunities very rental opportunities able to foresee been rates have we In always our rental we’ve the something the very, for on probably pretty but been not reduce terms that’s future, of that rent, to there, achieve, that is believe in and there rental not any don’t rate we would ever we We aggressive reduction sites. that doubt in good I would

been we’ve doing well. think I pretty

continue have don’t pretty Programs successful. think the any said selection. we money. lose our we to I we site very in stores will stores well the that We are as that in, past, do operate in

the the are market from the good we’ve go will So a construction there to I you and pretty think on tell to a marketplace challenges real cost pressures idea in had how perspective. today of I side. estate

everything know, lumber-related is much all higher. cost, construction-related, in we is anything As much, higher

But to it doing hit getting So we are the the job the push dealmakers landlords the our construction at and to the job a it’s more securing we’re holding to that. continue trying the deals and making structure great great numbers get challenging completed. to rent sites the work

So sites growth our on and solid. we’re we And ability to our is the overall deliver very excited long-term where we’re think sitting. a pretty basis

Rick Nelson

just And to that. follow-up Great. as a

ceiling, stores push to cash support. there mentioned way XX XX to certainly I’d that? beyond think to are have the the Is in the there any that’s your You what infrastructure would accelerate growth. capital and You store

John Swygert

It’s Yes. Rick, I I think current. right think forever. it’s not now, and

always XX the week XX store us. said stores. to with per right comfortable about one feels We’ve to We’re

some other easy up. not as stores Our complicated run fill out to there stores to and are as pretty

with right and the continue a stores. us that’s right X feel for X business. our as to want as is base. promote we’re do have ourselves ability the to place number we XX human that at. don’t think current from the we they the too sure successfully now you larger have our operating too way different model. within, right from and and this that make uber-focused I culture if not we teams, thing the we of we And years we’re or because feel have growing for just stretch fast right infrastructure, you we’re We – So to the we to model. any the the be we know, a really – grow right training in related to with we we grow to really It’s and right answer now, faster hurt of understand capital And obvious thin could might on now, why on XX

Rick Nelson

luck. Okay, and that good sense. makes Thanks

John Swygert

Rick. Thanks,

Operator

Thank you.

next Lejuez Our Citi. comes Paul question with from

your question. with may proceed You

Bran Cheatham

just Paul. was last product was good, for competitive quarters. couple like dynamics it Hey, product is I everyone. I availability changed the has for Bran but at wondering, Cheatham very This sounds for all of is on the wondering if

John Swygert

overall changing that we product any model challenges the us There the any is no competitive market no truly of their seen our for changes in competition, loss not We’ve any new desire. in or we retailers relationships causing marketplace. have that’s

what much able it. want, successful to what want at be we pretty We’re and we get choose

Bran Cheatham

Got you And their added, vendor to are role them adding decks come it. to seek are then of the of did of total the Thanks. your new just you And kind that you in kind or high-grading disruptions business? them because you relationships? they you’ve Did of vendors out?

John Swygert

new our the always you, to us our size power tell and we that is staying reach relationship. get, to because But sheer out vendors would just I keep any goal marketplace. most of in of vendor the

deal. So we’re not trying one-and-done to do

something, keep first the we them to get of make decks and we always we very work our they buy sure call. know we’re hard ready be role anytime in So always and to

So to that’s our incremental the just overall our overall add to to – arsenal.

Bran Cheatham

luck. good Thanks and

John Swygert

Thank you.

Jay Stasz

you. Thank

Operator

Thank you.

question next from Berenberg with comes Our Markets. McNamara Capital Brian

proceed with question. may You your

Brian McNamara

you you Good continuing on penetration I With said excellent Army afternoon. Congrats Thank the question. think results. for to my rather XX%. robustly, taking grow

believe comp pandemic and I rate, think as kind your XX% that it structurally impacts you run is growth higher of the now pandemic. pre Do underpins rate Army underlying fade? run was

John Swygert

last but all the I it’s point, build. the And think to some of it, – at stronger I be should would to But Brian, in I expand way, out your we’re the us. at Army sales. I XXXX, – intuitively, pandemic, the these intuitively, your that’s Obviously, Army, continue as with cap I we there, when the in the as noise terms don’t XX% over better tell. expand hard think already long know, answer think think yet. overall don’t I But continue of to for helpful to the to this it not numbers, you to we’re the you’re I – stimulus, XXXX over hate but ability

So opportunities. think I do and there is upside

able move digital we’ve impacts got forward. additional stimulus the we and that to money have of we some to noise initiatives, and as some to from people add we think But the overall I the are clear what as to getting some will with our here mix, be positive able the well people should be government. the

Brian McNamara

months? Great. last out? team particularly over color provide the your Obviously, That’s job a doing XX fair. you and on And your historically can merchant then build merchants are any tremendous

John Swygert

Yes.

of In some right to the added we’ve coming what experience call the two minor year, three to adding believe, team, who actually school, another year. terms of that our to people team This we I in out and the new department actually are clothing we someone has added team, last retailer, category. added, are we’ve from the to leagues and in just

So we’re a talk But the by, now, actively not looking for team. to where we continue comes position build anybody. someone right to if we them. we’re definitely And will actually in out will

for if the superstar full on overall we’re will them. the And So the by, comes team. at merchant look year we

Brian McNamara

luck. Best of Great.

John Swygert

Thank you.

Operator

for any further John time. Thank to turn remarks. now at you. And back I’m the I Swygert not like questions call any showing further would over to this

John Swygert

everyone, participation We Thanks, and operator. sharing to second you our your continued next our with you, Thank call. for support. quarter results on forward earnings look

Operator

Thank conference participating. today’s Ladies this you. and concludes gentlemen, you Thank for call.

now You disconnect. may

Ollie's Bargain Outlet (OLLI) 28 May 212021 Q1 Earnings call transcript