What to Expect From Ollie's Bargain Outlet’s Upcoming Q3 Results?
<p>RBC Capital provided their outlook on <a href='https://financialmodelingprep.com/financial-summary/OLLI'>Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)</a> ahead of the upcoming Q3 results, scheduled to be announced tomorrow. The analysts expect Q3 comp sales growth of 4.0% and EPS of $0.39, both in line with the Street estimates.</p>
<p>According to the analysts, deal flow timing from Q2 benefited Q3 inventory, which paired with a full quarter of contracted freight rates should drive meaningful quarter-over-quarter gross margin improvement. Q3 gross margin is expected to be 39.2%, compared to the company’s guidance of 39.4%-39.6%.</p>
<p>The analysts think the company should benefit from the trade-down activity but noted they are cautious that the retail environment has been highly promotional, which could make the company's value proposition less attractive to consumers.</p>
<p>According to the analysts, investors will likely be paying close attention to Q4 commentary, especially since major competitors like Walmart and Target messaged they are nearly back at normalized inventory levels.</p>

NASDAQ:OLLI