Ollie's Bargain Outlet (OLLI) management could indicate that Q2 comparable sales growth could be lower than prior guidance of 2% but maintain its stance that sales trends should accelerate as weather improves, when it reports Q1 results on June 3, RBC Capital Markets said in a Wednesday note.
RBC lowered its Q2 comparable sales growth estimate to 1%, versus 2% previously and consensus estimate of 1.3%, and adjusted earnings per share to $1.11, from $1.16 previously and consensus of $1.14 as compares get progressively tougher throughout the quarter.
For Q1, RBC said it continues to expect comparable sales growth of 2%, with consensus now at 1.8%, and adjusted EPS estimate of $0.88, with consensus at $0.87.
RBC further said it is modeling 2026 and 2027 comp sales of 2% each, along with revised adjusted EPS estimate of $4.41 and $5.05, respectively, from $4.46 and $5.11 previously.
RBC added that it remains of the view that the underlying fundamentals remain intact and that the company's current valuation is not reflective of long-term growth prospects.
The firm lowered its price target to $152 from $153 and maintained its outperform rating.
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