Ollie's Bargain Outlet (OLLI) 6 Dec 172017 Q3 Earnings call transcript

Good afternoon and welcome to the Ollie's Bargain Outlet Conference Call to discuss the Financial Results for the Third Quarter of Fiscal 2017. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from Ollie's. And as a reminder, this call is being recorded.

Stasz, from Officer; Mark President Officer. John Financial and today and Chairman, and call of Officer; Executive President Chief Swygert, Jay the management Chief Butler, are President, Chief Finance On and Vice Accounting Senior Executive Vice will over Mr. the call turn now I to to Stasz started. get sir. Please go ahead,

Investor today's of press found Thank results afternoon, this call was A the section that release third but results be be release Relations copy items can press you of the Litigation company's contain including call. may that and and limited want not hello year quarter the the Company's in expectations, predictions, issued our that remind outlook and including covering forward-looking for to this everyone. Securities of management’s website. could fiscal or financial on and a should from XXXX XXXX. actual on materially remarks the performance I fiscal our future everyone estimates within meaning Private on Act Any statements differ XXXX considered such to mentioned statements forward-looking Reform those

reports to to quarterly should in our and or any place future factors. filings, You these review including detailed you may Form Factors SEC these our Form description as obligation of them our reliance a encourage XX-K forward-looking revise more be not Report these We control and in today, that not and XX-Q, on are affect filings. of Annual on new no for discussed on undertake information speak future results which for we statements, undue or might only events. update

today's income, that operating EBITDA, to net per and referring adjusted may certain EBITDA, share on call as such adjusted GAAP net call to be will income, operating believe earnings important diluted of Mark. turn will adjusted income Reconciliations the be included adjusted we non-GAAP measures financial most to measures We the our non-GAAP over closely now to our release. investors these I financial financial assess comparable are to performance. measures in

with tight Thanks, Jay quarter the and about great hello today. call to your and being Consistency flow, and the had momentum our strong XX that very years execution results continued everyone We of record thanks deal Strong our are are performance business. our after that things results excited change. we us on for and to the in and store for control will and another third expense our drove we and new hallmarks not are critical quarter. success are two

delivered an a on of quarter, quarter the a increased and line XX% sales, For we in increase XX% net two-year a X% Comparable year income. last with record a increase and top in X.X% third increase in adjusted basis. the sales results bottom X.X% stack against increase store

departments half our comping sales with Our again based broad was nearly of once positive. strength

and were of best health categories Some bed our toys, housewares, beauty aids, furniture bath. and performing and

grow believe relationships marketplace. continue the vender and with size positioned buying the our We increased scale our on capitalize we're to well many in to opportunities and we

want, brand is As best major relationships drastically continue merchandize customers flow. to The they to strong name very able our with build we're we news offer direct what at we stronger see prices. reduced deal manufacturers, these that

and in expectations locations the total opened fiscal third opened quarter. performed the of three during end during a our stores new XX We XXXX. for quarter we've stores Our above XX quarter another since new

than stronger of of Army spending sales, see outpace opportunities. ever. leasing We to is Army more than the non-members. Ollie's with significantly pipeline strong continue a to member Growth continues

us allow on surprise different and a We're will level working latest to the to of reward some launch also time. Army customers. on Members to the their to plan us the been spending. the greatest we've program we members that to customers. most offers ranks based exciting year receive enhancements enable rewards which active introducing mobile communicate We're best working our some deals on will will our that and for Next for app

we're busiest doors around Our Ollie's and members. excited exclusively once again to night Army Night just to our open of the Ollie's is corner Army the year

our Our December eager packed great are to is event Bargainauts. Most stores with Loyal deals our this team and is The Sunday, welcome XXth.

remember, stores you for Army night, time is you packed. will we If join in great be to see us there hope if the great, the and enlist a still not now

birthday this As we've before, we're celebrating said year. XXth our

has we've commitment their we of no and want and successful hard know and We’re X,XXX dedication team of their every to our offering I proud It's to truly their slowing for of We the do, for holiday each day. places only our work year of and the acknowledge drivers associates customers we extra members where new to growing all history season Good number passion on that expansion are great deals and Cheap have that us intention demands and an ever of sincerely them of our the they I more at our and this Stuff taken today. markets time but long and are success. thank our to down. than not

in wrap by our and the business. trends the up are proud overall me quarter we're saying Let of how third we results seeing

and with of marks, all vintage, model stores and itself each As consistency our performing every hitting of to the quarter I’d like strength the state co-tenancy across well. say, we're our proves

year our for continue coming pipeline our the store Our stores And the openings new full across all above for and perform year. are building geographies. to expectations we're a complete

laser well today's are strong the environment. and on We close we're in out developing industry retail focused vendor relationships positioned ensuring

quarter trends encouraging. early third are quarter results Our fourth strong and were

guidance outlook for turn shareholders. Bargain deliver are on result raising our great results and expectations against living a customers your turn the begins objectives of in in name more and In We're year to business, through John now our deals. positioned by and customers call and well over to middle support we're you I'll it will brand take detail which moment. name our for our offering more Ollie's. in we And up again to ends to you a deals detail. those our deliver give it our our with to full John, As merchandize. you once bargains continue long-term to financial Thank is

Mark, and Thanks, afternoon good everyone.

average year solid increased against on growth The by X% pleased was a increase delivered to sales stack the income increases, our store net opened We top-line period during sales an stores a quarter EPS long-term are leverage, of both driven year-over-year. in Subsequent basket increase size in in third of store increase and have our with the stores transactions. and states, XX.X% above quarter increase base an XXX another comparable XX on sales XX completes X.X% the quarter quarter-end, the sales count three increase brings opened all and last to two store This and the basis. XXX million; year increased comparable openings XXXX. operating fiscal our X.X% in for We new to for strong in $XXX.X stores a expectations. additional total adjusted Net we XX.X% to income fiscal the year. store in store XX of stores our new ending

primarily base. our and The basis decrease in offset gross the expectations above selling productivity our continued costs. and of the due overall Gross XX.X% supply by in to Our was XX expenses a continued $XX.X and to store gross across primarily margin, higher XX.X% profit stores increased related markets decrease growth. favourable merchandise margin margin in million existing and perform new support to to $XX remain The volumes chain over million. with increased in increased remaining to we our year, from to net sales decreased increase our sales. points past partially new SG&A our was XX.X% excited to expenses new base investments our stores store of open personnel

of leveraged to sales, XXX basis SG&A percentage net a we As by XX.X%. expense points

quarter. XXX Excluding $XXX,XXX leveraged increased in related to million transaction XX.X% Operating XX.X%. SG&A basis points $XX.X margin by to expenses year, and prior income operating expenses increased we XXX points basis of the from

net operating Excluding related margin income last basis the and adjusted and operating increased from Net $XX.X increased million to diluted adjusted per $X.XX. XX.X% transactional income XX.X% XX increased increased of points. XX.X% income to share $XXX,XXX year, expenses

third million $X.XX. XXXX. $X.X year, year, quarter share million our expenditures in in the Excluding of the facility. to to quarter $XX.X down of XXXX term benefits year. end, the XX.X% $XX.X of fiscal income was change million the quarter and million EBITDA third in increased balance to XX.X% in the debt We timing quarter to XX.X% net of compensation third outstanding new net the tax an transaction to increased to totalled of $XXX.X $XX revolving million centre. and income in openings expenditures of debt prior additional adjusted to At million. new ended million income to adjusted associated credit increased this $XX.X XX.X% and the due increased EBITDA of stock-based cash to diluted no with per quarter. fiscal Capital $XXX compared borrowings end net have million for we The in largely expenses and our taxes the the total Subsequent adjusted $XX.X with resulting the million paid $XX.X under due our store accounting and we million the a $XXX.X data loan compared million related increase last of $X.X quarter

discussed, as full XXXX, such. we the our Turning Mark to guidance outlook as for fiscal are year raising

raising range a range comparable share $X.XXX our we to raising to share of adjusted We a $X.XX to we of range diluted per income $XXX a million, expect we are $X.XX, raising sales are $XXX diluted expectations net to net million $X.XXX total income expectations X.X%, billion increase to expectations to store sales to our billion, $X.XX. for our to between X% and are net our per of to to income $X.XX operating

count million. effective for of outlook and a of XX Excluding impact assumes an stock-based the approximately diluted rate accounting of tax our share compensation, XX% the

$XX.X Our to including goods amortization of component $X.X million million, million the to is interest depreciation that expected capital million $X and and the of expense to is $XX.X at are expenditures projected be runs range $XX million year, total be $XX still for to the expense for million year. through the sold in to estimated costs

reminder, fiscal year, a late week and XXXX in week is XX extra a January. As the occurring

the per week will operator to call to turn add in continue extra sales penny I to half and $XX back will a the estimate session. than We start million over earnings Operator? approximately less now to diluted share. Q&A the

Boss Thank question comes [Operator first Instructions] JPMorgan. from you. Our Matthew with

open. line is Your

nice and quarter Thanks guys.

Thank you.

the about and if we when fidget your consistent, two the five now comp actually So exclude straight really really the have last last spinners consistent XX for think you you at quarter, that level last model, for pretty plus. story been years quarter

forward. going two way Is that question still generating line with are a comp, mid-teens I dollar my at top you model things? comfortable mid-teens about guess growth best and think the So, to EBITDA the

XX% John. mid-teens to X% this and X% based XXX%; comp growth we the Absolutely income year-after-year, generate Matt store be revenue is the expect the approximately on net sales to top-line able to growth yes. --

Great. the openings? And think best new are the accelerate, driving then how do store year? guess the you performance returns see follow-up, as I historically the the is that do seen I continues the think pipeline just store for up next in we year you these model. And to a have what productivity see about recent this shaping John, just we most

and on of are performing new XXXX and But deals flows that revenue see that in well for expected and what And driving continue are are our to you we that know, pretty the have we new are class definitely are our above deal would what’s fact a above increase have box based we the stores well XXXX the very actually our we model the able year-after-year. been But, Matt in seeing good now. and stores performing based expectations have a stores to delivered the years are store here on in several consistent get. as Sure, model. merchants in they

excited So about we are it. very

year year believe and mid-teens store to as new full next well. we pipeline store in nicely shaping see Next we we growth, expect up new pretty nice growth have for the a account

guys. Great, best of luck

Matt. Thanks,

you. Thank

Our Thomas Capital Markets. question comes KeyBanc next from with Brad

is open. line Your

quarter. guys. more quarter? what afternoon my color add fourth good comp running expectations guys fourth the let And this more and hey, maybe the you guess Any here first a are Yes, maybe question where for congratulations your as well. me explicitly on on I start to

are good quarter first trends. go for comments. monthly tell start a night, of our that your Thank about there you, coming was it I’ll a with we Sunday of weather. said, very But a are inter in guidance the off of all and Typically we QX. consistent expectations, inclusive give of don’t are on lot can with lot Yes, now we holiday big are. But weekend where Giving our or Brad. really feel the as is good everything, predicated results, you are one to in being days I we we pleased between Christmas Thanks

far As as guidance, Jay?

this I to about against Jay on add to said thing Brad, that. we is own speak coming Yes, the numbers. good Stasz, up can just this is what and talk other Mark to our

to we range. high, shift, range QX to a year comp a are for major X% of year and X% in quarter are quarter. two probably quarter the stack end the of is mid a We the comp X% but the in not three to now of But what X% the being thinking the low of and X% we the with fourth XX% is range, really said, facing in the talked about that stack of last

follow-up then on XXXX? we think explicitly as adjust to an XXXX, extra for quarterly But we long-term I about us to obviously other John week guess question our have start thoughts to tune Great. we on need fine the annual early as financial model any this the for earlier And year. and outlook. for you just about just the basis

X% Yes as to have a color lot we Brad, give we on guys comps you given the at top of margins XXXX, a are to that time we tell net to income growth, gross, for XX%. long public. XX% now I to about long-term to algorithm and line but said of that right not back period been X% would have whole we go growth close Really going mid-teens top-line, consistent you of have

going be it’s So if out consistent. you that to pretty model

our know well -- build sales. pretty little don't do and once have store we've so eight it But above that do we get you as behind ourselves actually infrastructure don't As build we a sales we the ball if to X.X% we get and comp our to model down don't the lever bit. well don't slow X%

parameter per basis. we've you So that on past to would model we long-term to same given in stick a the

you Great, much. thank so

Thanks, Brad.

you. Thank

question comes Piper Peter next with Jaffray. from Our Keith

line is open. Your

label today. just CPG Friedner and specifically it's out guys, I Peter taking Bobby for the Thanks Hi ask of more actually area you're to for on moving pertaining seems seeing opportunities close competitive It look a these that of remains and branded as the seeing you’re pricing companies. new branded for wanted points CPGs my about question. consumables hyper are in distribution. lot retailers to to private

So you're you is you. this Thank you're from? If the be will a dynamic branded could just in discuss seeing that great. benefiting trends CPGs

tell availability I exciting are none we're these prices XX will Yes, to developing with names think of responding quarters And for consumer any brands offering don't anybody consistent our you. are the if that strengthening greatest is we're I've and our we're the to out the you driving the with or these environment this I know I of getting is entire said close two three doing seen them. they're environment be been in would on label focused switch you best relationships, But we I've in some them it's years. tell which buying focus private of bargains, I this else’s I've CPG stores laser is relationships. what certainly reduced America drastically that honest at named and

relation in that's a obviously So Ollie. here to

the seen bargains. So are our our ever is beautiful that big, strongest brands bright and and it's and full, pipeline I've they're

at. really good about feel we're I So where

figure with great. where follow-up of believe, thought XX% any this next consumables just over a couple could go I Alright, years? the to at And sales quick of

to concerted making John. obviously is a this With in effort not consumable increase we're regards to Yes, the our our consumables model. penetration Bobby,

know from, you As the with from come we overall go where vendor deals the base.

at than could So where where want more today. more go does But basis much potentially it’s go I say XXX would would XXX it up increase or points. to we consumables not

As that the would sell drive in we consumables we margin the through from additional puts pressure day. you stores. additional take any can If additional know and store we the that volume on mix that traffic

lot. a thanks quarter. luck Alright, Good this

you. Thank

Thank you.

next Our comes from RBC Markets. will Capital Scott Ciccarelli question

open. is line Your

good guys, it's Rob today. on for a Scott quarter. Iannarone actually Hey Congrats on

Rob. Thanks,

Very welcome.

anything or touch a on flows. and there that bit actually it's Is higher guys it's the higher it's than sales Just first think a quickly speak inventory there can to little had the touch just time I wanted gearing store the growth, It you quarter. with been just do this for holidays timing to? of to up deal openings,

our timing of that. tick it we're It's as there. our the I flow bit store happy we a holiday the and as position. this Rob, a that just can of sales higher trends. there Yes, openings is flow, to inventory you're inventory the by-product deal right the mean season. really point we're I it's little than into deal a head well Jay. and really of remainder the But strong a speak position to in But with as with is your And is happy by-product of a of we're seeing reflection strong

Great. Glad updated member give more count, And to follow-up doing those guys sales kind around maybe are but it. Can Ollie's hear you the of any unrelated, Army. your of us now? percent what towards metrics one just

a Sure, making to count continue up the past. the which in is the current a of sales, ago X.X million they're at versus had XX% consistent our third year over member million we very is metrics with And XX% increase. which about be quarter, the X.X consistent what is

guys, and lot holidays. congrats a happy Thanks again

Rob. Thanks,

Thank you.

question Our with Stephens. Nelson comes from Rick next

Your open. line is

pressure mix laying margin into you merchandise to consumables I'd or that margin? on that Congrats Also that driven towards Is on factors shift Thanks. the quarter. other like follow-up discussed.

that the we driving we that’s this in mix this the down several seen category for is consumable Rick, margin about now. shift John. are have talked Yes, It’s predominantly and quarters

to a from higher much and we are guided not margins So year surprise it gross down we a big at as expected year. last the number this us was to

a supply as we of So, hurricanes big the and expected availability of costs we trucking had not outbound of the little the facet a of lot and not for that well, with surprise than less pressure bit in in costs the business. on seeing the a quarter slight is a also improvement side had we’re freight there, chain a which post business little the the bit inbound

able still are XX.X% -- through perspective. for So, north on closer with basis margins to we to margins confident will XX% year to a XX.X%, it about are full we previously year we We a a and the guided we navigate about full from are be right now to a gross had basis. gross

I color. like to you a hurricanes, for Thanks was on comp that headwind if that in the the fact to Also period? in think follow-up

bit take the Rick and markets here. we -- might I’ll this hurricane, part stores our on kick-in regards of a non-comparable not of in are we yet. little see down a the big don’t lot with a did stores Mark impact business, Florida to a our

call don’t was to on was believe to did market but we for probably any to not have We close very it a had impactful disruption a the nothing something quarter. and really and that have little Florida in that areas the tiny material material some any the out we we damage stores But impact, hurricane So the fortunate significant, basis. comps store way, in days. lucky we have speak bit for some not to us are enough

you. Got

you you How ask lapping quarters for Finally, more are year in have out a scenario numbers ago. category? on that do you that could see big if opportunity called five some so much strength consecutive I HBA,

that stores we ability from that are you growing wouldn’t go brands our see companies, about on numbers take because in into for the And an name obviously think -- come prospect. you, of the incredible major but relationships a the and we think with bargain bullish you have more very to excited scale product these outlook our forward basis, up very, come America and prices. at a we very am when our we we Well that CPG I on

us, it’s getting excited people So we think that and it’s we the think are basket, we it. started that helping breaking about

Sounds good, luck. thanks guys. Good

Thanks, Rick.

with from [Operator you. Our question comes Instructions] Fargo. next Kelly Edward Wells Thank

open. is line Your

plus tremendous Hi to expansion square I item just store what with we on footage guess of to cost you last keep amount I growing new of guys, to good is, going able Total growth quarters. these seen touch have afternoon. a I less guess. line leverage you get have than a SG&A, down for at trying markets? over I this in rate seen wanted the into how am with have even particularly that costs been the year

pretty might can But as before, this of and wrap able X% SG&A going for much if me. to here to a heavily. comp, and Jay part we be it we Mark the to we take than greater regards up I’ll overall pretty do X.X% with cost, have said are we’re lever to

So the we way and SG&A front business. light we load have run the on we the pretty obviously a

been to drive that as to and is sales So our box number tight not to we that we able some there I to control have compliant piece And we become that pretty one-time as that’s a sales that successful the we and are in that our continue continue G&A continue costs G&A to related we invested able incremental goal our expenses is think a to of our top-line lever sales lapping do there. as expand We we’re base. to to volume. grow to run with grow continue the were business positive

forward looking change leverage the point doesn’t you very just much So think?

we when a of we with the we at we’re investment we where that people to on make bit the at, said have lever in can have to we heavier X% are certain X.X% think past now have the there business. little Right times side

bit normal little was year year maybe people a the and side next this little bit than on lighter So heavier.

our a we seen have to the XX this I where at are leverage when there. the leverage fall maybe SG&A I expect at model when point So But out not pretty be built would while to would same comp, next comp expect X% got leverage this year or X% stay for we ratios points the XXXX. you we to X.X% consistent outpaced through model they’d basis year X% year, you with to anywhere XX near to

Army then just maybe year, looking could as do And Ollie's more just on would any was don't that mention with know and I you around hoping next a you there all to Okay. you'd are impact and potentially provide some if associate sales to you changes bit I impact color what expect is a margin this.

any that be helpful? Just color would other

of system we our lot the the we've about can and we've that course telling go and to year. of the so capabilities ranks internal I did around not a data first mentioned ages comments ages do and been Phase have I and ages prepared I'll Phase Yes, the and and gathering get it I've as of that capabilities, more just throughout the everybody II wanting in fingers doing for the been and

the Ollie's Army. exclusive the that them will or But incentives be them offer and deals discounts -- on going a to to a everybody three to star going them with going year. star, two we'll obviously on money So this do somebody one we'll be have the we're able might be and star stay who is ranks And star to perhaps it a three the A only. one offer had in amount might star. two spends additional a in more certain to perhaps to and of we're me star or

any to my I'm what protected know to embedding underlying with how we us that to we and it. got I going them, but customers, we're stay hear to these on hear, these not in to motivate modeling to wouldn't know our stay the We going they to -- us, to numbers we're these planning are not they the it, asking and kill -- it. talk we're me are advantages to planning or we huge hear additional of that want them, how from have any we know fashion we're they people, You I'm with go want to everybody opportunities, going think great want to know them

luck excellent. Okay, of QX. best and Thanks in

Thank you.

you. Thank

comes MKM McKeever question Patrick with from next Our Partners.

Your line open. is

Thanks. Hi, guys.

locations came ahead and any store stores. I even store think the terms or close anything different well and the which other you that with number little as changes performance, would or you doing strong Are comps retailer know street on like in certainly the in that were getting but about preopening as my of it the into you've that relatively talked the are Just inline, new though just the routine new selection significant anything bit of performance? I number play process already, or marketing the

same Yes, Patrick, site our this the has changed same to head site many not the process, the individuals is whatsoever years. estate John. have With have selection we many, team, regards the process up overall selection we real department for

long same time. period are for the going we have a way of we market So, to

very, process very the we've for preopening we're done same a period long of thing is or cadence consistent doing Our time.

incremental the we and may that's the gone So would in had and past do. much we've been going of we'd of no say majority always in able sites that same the business or what similar seeing. in the -- We're Are no the is to be getting better that has getting deal big nothing that the to pretty that speak we're customers stores what changes buy spend we've are they we we drive to the and the of in there sites to we're that slightly see go driving out the to and have the stores they to we more when that say money. past, possible. retailers other going site that performance secure excitement get the that we able had got we've where that been But not the in situations we've certain would not have

it it's all area, year last we're excited So say have just it's as it of across one been the thing perspective all geographic to it. and open of in well. from is what seeing we’d this not stores, and stores one see broad and been we our year seeing that's based And in our we're we're consistently

pattern? too Thanks I in talk Black open but about morning to-date a traffic you weekend give And with it or did in that bit then Cyber weren’t on much you then Thanks -- of core the see looking days guidance, early and be might Monday, terms even Giving let’s relatively sales consistent I subtle guidance through don't Friday any customer at and to know change the the fourth your Or know on the quarter Giving but Giving, would want more last fourth quarter was the basic you those any year indication you online? spending on that patterns store say in Thanks little

had very effect people Yes, any at with get and stores. pleased previous trends the Patrick, absolutely greatest with were -- opened we very was response first, adverse are years far didn't and no our pleased of flue saw year that into we a we waiting difference biggest with there any biggest very we and and other all stores to saw we consistent the early QX. to than no my that's But we and whatsoever weekend what when see deal consistent so the

okay. Thanks, Mark. it, Got

you. Thank

Morgan Vincent Thank Our next Stanley. Instructions] you. Sinisi [Operator question from with comes

Your open. line is

Ed's a mentioned start of just go taking levers of for and little opportunities your that opportunity, X.X on questions can bigger you But that wanted where maybe with there. kind the X bit nice that of Hey, I back terrific. of SG&A some my within really us in. kind very where one question, much couple comp to line just some and kick remind and to future guys is see quarter know forward? going nice of that Thanks times a leverage you of above to bigger you do

we Store we're is we to is opportunity, to a small the the of side run component going to we going you probably X.X% the regards little you'd that to until pretty we're going to in model to the G&A that we said go the it, in there on is lot store see G&A focused you're to the get get be our that's to modelling XX be do more to side a But big this not way as above side this out out front. be able the very pull see we opportunity And don't X% component of SG&A With be lever biggest but like out biggest model the we're where the is year. very, we piece, fix stores would able long-term leverage consistent expect compared there in leverage. very to be lever pull bps able and most biggest out to in to X% a basis. and coming Vince, little above -- now XXXX going SG&A when coming forward the comp. much to to see But X.X%. John. the levers leverage we of expect leverage to XX we’d zero going all X% the Yes,

at be helpful. a going both that should that Thank with is it's are up step launched one think that to how day progression then Should how very app to going of you. to perfect, should geographies we time of very wide Okay, just enhancements on Army -- the store there? program. we different And of a on to Is the you we the going of mobile quick ranks be that timing? do the follow Ollie's think think and kind kind the

do by but both year. it. run. them We same would wouldn't at time, personality be the that to same is like the There this walk our before to the no we think rolled pretty have expect do them ranks way are going going to at we perceived Vincent out they're Army, is we the we as both programs exact do cool But time.

you that would we geographically is that that would it perhaps personality. do fit say our Now

spot are you on. probably So

we'd be to we’d they'd is what by of sometime Vince, first be both probably hopefully both thing out have together, by the but to add of the expect one those Obviously rolled But come out of back-to-back, would probably up half next but half not lined that first XXXX. would year.

Okay, good guys. luck perfect. Thanks much very

Vince. Thanks,

you. Thank

Our with next from question comes Citi. Concepcion Alvin

open. is line Your

job Comps questions. more you you seem their look that be even something upon pretty an your upside conservative? change relied not should that's at people larger guidance surprises. and we've view where reached a think be to become so But as in something area my to should and Do little quarter taking the investors accustom have bit for Thanks on maybe much better, expected as great that. you. Thank

Yes, process from talking that's we're our announced where has Matt Alvin anybody think We've the I call as story. what that's The we’re the who we comp, think us we the is about first a or heard growth X%. say going but to since has always said. been be, first that I've been nothing involved IPO to on question started consistent me with way X% us it

we're a averaged and deeper go I only years we think to or about go back allowed comp... XX XX% You whatever

X% X%. to

X% X%, to but X% go X% XX back could years. I'm comp. X% sorry we to

and model. I in the there we business, don't at as said a just we when most stick to So model a we registers spinners more way think get QX X.X% how as went prudent asking, the this in the get but everybody we business, the at and appropriate business to were the And can run everybody right the more, business. is we X.X%. a asking understand the If way what QX that's QX off we're way That's hit I've I'm run to and budget how think business. at X.X% the we've how we run turn the said, and to going we’re then with consistency X%. the the We it's we're the we we

you your quarter. you what be fourth a and that in to think year if third the on slowdown a seems expecting possibly on mid comp guidance, X% basis in relative to to are to to heard follow-up one I just And use of that the high X% two saw say year Thanks. they midpoint a the I quarter, we

So is there reflecting some today, considering fourth are you conservatism are is that or seeing be it that quarter? view or what should we in the items unfavorable

of, nature conservative way the have. to, Yes, and But we not three our is are think would say this stack, against a numbers that it’s are business I against here. we up alluded anything that it’s year earlier would we’re we the John. easy we I going run it’s not afraid I up XX% say Alvin, had like Jay

have a have sales. store four had comparable positive to row we we on years had So three where

keeping don’t we that at comparable store look drive customers as look from sales. more slowing at maintenance and So we down, positive perspective continue and to a

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closing Thank you. would turn like I'm call further not queue, the in over Mr. I back so to to questions showing remarks. any Butler for

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We you and the Thanks remainder and stocked earnings everybody well in to again positioned safe Thank at day. our encourage holiday March. you thanks of season. a have call We much happy of on in very the third holiday Ollie’s. and we incredible get a are our speaking wish and season for look with to everyone out Ollie’s good we again late participating all to shop you and call the for a stores there to believe deals Our associates. of are and forward all fourth quarter quarter

and Thank conclude participation. you that for Thank you. your does Ladies gentlemen, today's conference.

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