Ollie's Bargain Outlet Cuts Sales Outlook as Second-Quarter Revenue Misses Views

11:56 AM EDT, 09/02/2026 (MT Newswires) -- Ollie's Bargain Outlet (OLLI) lowered its full-year sales outlook on Wednesday as the discount retailer's fiscal second-quarter revenue fell short of market estimates amid weather headwinds and economic pressure on consumers. The company now expects sales between $2.93 billion and $2.94 billion for fiscal 2026, down from its previous guidance of $2.98 billion to $3 billion. Comparable store sales are pegged to be flat to up 0.5%, compared with the prior forecast that called for about 2% growth. The FactSet-polled consensus is for revenue of $2.96 billion and same-store sales to increase by 0.6%. "We have updated our second half sales assumptions to better align with recent sales trends and the current environment," Chief Financial Officer Robert Helm said during an earnings call, according to a FactSet transcript. "While our outlook reflects a more measured view of the near term, our confidence in the long term growth opportunity remains unchanged." Adjusted earnings are expected in a range of $4.57 to $4.65 for the ongoing fiscal year, up from the retailer's previous outlook of $4.45 to $4.55. The Street is looking for non-GAAP EPS of $4.42. The outlook includes tariff refunds of $28.3 million received during the second quarter, which it plans to deploy in pricing. Last month, Dollar General (DG) and Dollar Tree (DLTR) raised their full-year earnings outlooks as the discount retailers' bottom-lines benefitted from tariff refunds. Shares of Ollie's were up 5% in Wednesday trade, although the stock has lost 31% so far this year. For the quarter ended Aug. 1, Ollie's revenue rose 9.1% to $741.3 million, but fell short of the average analyst estimate of $747.7 million. Comparable sales fell 1.8%, driven by a drop in average basket size. The same store sales print followed a 5% gain in the prior-year quarter and was worse than a 1.1% decline modeled by analysts. "We believe our sales results were negatively impacted by the combination of less favorable weather, continued economic pressure on the consumer, and an elevated promotional environment, which all led to a more challenging backdrop than we originally expected," Chief Executive Eric van der Valk said in the earnings release. Ollie's attributed the same-store sales decline to lower ticket, rather than traffic, Truist Securities said in a Wednesday client note. That appears to contradict what other retailers have experienced in recent months, Truist said. The brokerage had previously assumed that high gas prices may have contributed to an expected comparable sales deceleration. Last week, UBS Securities said it expected Ollie's second-quarter same-store sales to have been pressured by higher fuel prices. The retailer's adjusted EPS jumped to $1.42 in the quarter from $0.99 year over year, surpassing the Street's expectations for $1.12. Price: 75.40, Change: +3.05, Percent Change: +4.22