After-Hours News: Ollie's Bargain Outlet and KB Home Report Earnings
Ollie's Bargain Outlet (NASDAQ: OLLI), a retailer of closeout merchandise and excess inventory, reported fourth-quarter results after the bell on Tuesday. Homebuilding company KB Home (NYSE: KBH) also reported financial results, but for its first quarter of fiscal 2019.
Here's a look at each company's results.
Ollie's Bargain Outlet
Ollie's fourth-quarter net sales rose 10.4% year over year to $393.9 million. But management was careful to note that sales would have increased 15.8% year over year if the year-ago period hadn't had an extra week. Sales growth was driven by a 13.1% year-over-year increase in the number of stores in operation and 5.4% comparable store sales growth. Impressively, Ollie's comparable store sales growth was on top of 4.4% growth in the year-ago quarter.
Non-GAAP net income increased 41.9% year over year to $47 million, translating to non-GAAP earnings per share of $0.71.
Analysts, on average, were expecting revenue and non-GAAP earnings per share of $397 million and $0.69, respectively.
"We delivered yet another fantastic quarter and we are proud of our record top- and bottom-line results for the fourth quarter and the year," said Ollie's CEO Mark Butler about the quarter. Butler pointed out the company's strong sales growth, improved profitability, and Ollie's 19th consecutive quarter of positive comparable store sales as notable trends for the quarter.
"New stores performed above expectations as well," Butler added, "and we believe the success of our new stores across geographies and markets is proof that our founding principle of selling 'Good Stuff Cheap' continues to resonate."
Ollie's stock is down about 2.8% in after-hours trading as of 7:56 p.m. EDT.
Homebuilding company KB Home posted fiscal first-quarter revenue of $811.5 million, up 7% year over year. KB Home's earnings per share came in at $0.31, up from a loss per share of $0.82 in the year-ago quarter. Notably, however, the company's earnings per share in the first quarter of fiscal 2018 was negatively impacted by a Tax Cuts and Jobs Act of 2017-related charge. On average, analysts were expecting fiscal first-quarter revenue and earnings per share of $831 million and $0.26, respectively.
KB Home's average selling price decreased 5% year over year to $370,900, "primarily due to a shift in the geographic mix of homes delivered and a lower average selling price in the Company's West Coast region," the company said in its fiscal first-quarter earnings release.
KB Home CEO Jeffrey Mezger was optimistic about the spring selling season, noting that "healthy growth in average community account" and "a substantial number of planned openings still to come, positions us to capitalize on demand during the spring selling season."
Mezger said improving market conditions suggest the company will be able to achieve strong revenue in the second half of the year.
KB Home stock is up 3.6% in after-hours trading as of 7:57 p.m. EDT.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ollie's Bargain Outlet Holdings. The Motley Fool has a disclosure policy.