Earnings Preview: Ollie's Bargain Outlet set to shine in the value-seeking boomation report.

In today's economy, where the pinch of inflation turns shoppers into bargain hunters, Ollie's Bargain Outlet (OLLI) is catching eyes. By pricing its products 20-70% below what you'd find at regular retailers, OLLI is a magnet for those looking to stretch their dollars further. This approach not only boosted their Q3 performance but also allowed them to bump up their revenue and same-store sales expectations for FY24.

Heading into Q4 (Jan) earnings, the buzz is that OLLI's adjusted EPS could jump by 38% and revenue by 18%. Thanks to last year's positive same-store sales growth, a repeat performance in Q4 looks promising, with +3.0% comps on the horizon. It's clear that OLLI's knack for attracting budget-conscious shoppers isn't waning, especially as folks continue to prioritize affordability.

The last quarter saw positive same-store sales growth across more than 60% of OLLI's product categories, a trend likely to roll on, bolstered by the company's expected continued gross margin improvement. With FY24's adjusted EPS forecast now at $2.77-2.83, all eyes are on OLLI's next move.

Investors are keen for a glimpse at OLLI's FY25 (Jan) outlook, hoping for more good news. Despite Big Lots (BIG) facing challenges, OLLI is poised to keep drawing in crowds and delivering strong performances. Reaffirming its long-term goals, including double-digit sales growth, 40% gross margins, and double-digit EBITDA growth, will be crucial in its FY25 guidance.

OLLI's stock has been cozying up to its 200-day moving average (73.02) lately, suggesting a potential rebound towards yearly highs if the upcoming guidance is favorable. But, a shift in the retail winds could see the stock dip below this key support level.