While Nvidia (NVDA) Earnings Captivate Market, Dollar Store Five under (FIVE) surged after reporting better-than-expected results. Meanwhile, Ollie’s bargain outlet (OLLI) fell after the Q2 reports and Dollar General (DG) went into a steep dive.
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Ollie’s Bargain Outlet reported Thursday morning that second-quarter profit rose 16% to 78 cents per share, while revenue rose 12% to $578.4 million. Comparable sales rose 5.8%, the company said. Prior to the report, analysts had been predicting Q2 earnings of 78 cents per share and revenue totaling $562 million. The consensus also was for in-store sales to rise 1.7%.
The discount retailer also revised its full-year forecast to $2.276 billion to $2.291 billion in revenue, up from its previous range of $2.277 billion. The company also forecast same-store sales growth of 2.7% to 3.2%, compared with its last forecast of 1.5% to 2.3%.
Meanwhile, Five Below reported late Wednesday that its second-quarter profit fell 36% to 54 cents per share, in line with expectations. However, revenue rose 9% to $830 million, beating analysts’ forecasts of $823.3 million. Five Below also now forecast full-year profit of $4.35-$4.71, down from a previous forecast of $5.00-$5.40 for 2024.
Same-store sales fell 5.7% during the quarter. Brokerage Craig-Hallum upgraded the stock to buy from hold following the report.
Five Below shares rose 2% to 80.50 during Thursday’s market session. Ollie’s Bargain Outlet erased early gains, falling 6.8%. Dollar General shares fell more than 24% after missing on second-quarter earnings and revenue. Dollar General saw quarterly earnings per share fall 20%, while sales fell 4%.
Shares of Ollie’s Bargain Outlet are trading off an official 104.98 entry, the high of July 15, according to MarketSurge chart analysis. Five Below is attempting to break out above its 50-day moving average after a steep five-month decline.
Dollar General stock also attempted to regain support at the 50-day line. Thursday’s move signaled an undercutting of the October lows, which would take the stock to its lowest level since June 2018.
Discount retailers are generally a classic defensive growth player that can do relatively well in tougher markets or amid economic uncertainty, benefiting from the consumer trade-down in such times.
Dollar General stock has a Composite Rating of 24 out of a possible 99. The stock also has a Relative Strength Rating of 33 and an EPS Rating of 19.
Follow Kit Norton on X @KitNorton for more information.
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