While Nvidia (NVDA) earnings transfix the market, dollar store Five Below (FIVE) advanced after reporting better-than-expected results. Meanwhile, Ollie’s Bargain Outlet (OLLI) tumbled following its Q2 reports and Dollar General (DG) rolled into a steep dive.
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Ollie’s Bargain Outlet reported early Thursday its Q2 earnings grew 16% to 78 cents per share while sales increased 12% to $578.4 million. Comparable sales increased 5.8%, the company reported. Prior to the report, analysts projected Q2 EPS of 78 cents and revenue totaling $562 million. The consensus view also had sale-store sales increasing 1.7%.
The discount retailer also revised its full-year guidance, expecting sales of $2.276 billion to $2.291 billion, up from its previous range that topped out at $2.277 billion. The company also projects a same-store sales increase of 2.7% to 3.2%, compared to its last forecast of 1.5% to 2.3%.
Meanwhile, Five Below late Wednesday announced that second-quarter earnings dropped 36% to 54 cents per share, in line with expectations. However, revenue increased 9% to $830 million, topping analyst predictions of $823.3 million. Five Below also now projects full-year earnings of $4.35-$4.71, down from a past forecast calling 2024 EPS of $5.00-$5.40.
Same store sales fell 5.7% during the quarter. Brokerage Craig-Hallum upgraded the stock to buy, from hold, following the report.
Five Below stock jumped 4.5% during Thursday’s premarket session. Ollie’s Bargain Outlet erased early gains and dropped 6.5%. Dollar General stock retreated more than 24% after missing on second-quarter earnings and revenue. Dollar General saw quarterly EPS fall 20% while sales declined 4%.
Shares of Ollie’s Bargain Outlet are basing with an official 104.98 entry, its July 15 high, according to MarketSurge chart analysis. Five Below is attempting to break above its 50-day moving average, after a steep five-month decline.
Dollar General stock had also been attempting to retake support at its 50-day line. Thursday’s move pointed to an undercut of October lows, which would put shares at their lowest level since June 2018.
Discount retailers, at large, tend to be a classic defensive growth play that can do relatively well in tougher markets or amid economic uncertainty. They benefit from the consumer trade-down at such times.
Dollar General stock has a 24 Composite Rating out of a best-possible 99. Shares also have a 33 Relative Strength Rating and a 19 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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