Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) Q3 2019 Earnings Conference Call - Final Transcript

Dec 10, 2019 • 04:30 pm ET

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Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from Matthew Boss with JP Morgan. Your line is now open.

Analyst
Matthew Boss

Thanks, and it goes on I'm sorry for the loss. Mark was clearly a legend and we miss him.

Executive
John Swygert

Thanks, Matt.

Executive
Jay Stasz

Thank you, Matt.

Analyst
Matthew Boss

I guess maybe to John. Can you speak to the cadence of comps you sort for the third quarter and then looking ahead if any comments on November maybe versus plan and, just help us to think about the progression of reverse waterfall cannibalization and supply chain wins. Does that keep up the timeline for returning to under two comps.

Executive
John Swygert

Sure I'll Matt. I'll let Jay take the first part and I may chime in here a little bit on it.

Executive
Jay Stasz

Yeah, Matt, sorry, you're breaking up a little bit on our phone. But I think I got most of it. In terms of the third quarter I think you asked about the cadence. I mean we don't talk about it. Each of the months were pretty good. October was a strong month. So that was good to see. And as far as returning to our normal growth algorithm like we've talked about, we would expect that to return next year in 2020. And I think you asked also about some of the headwinds regarding cannibalization and reverse waterfall as well as supply chain. And much like Q2 the cannibalization of reverse waterfall is about 150 to 200 basis point impact on comp. The supply chain headwind is, like we said on the last call, it ended up being about half of what we experienced during Q2, in Q3. So call it 75 to 100 basis point impact.

Analyst
Matthew Boss

Great. And maybe just a follow-up.[Technical Issues] clear. Very strong [Technical Issues] productivity it came for 100% this quarter, can you just speak to the strength that you're seeing from this year's maybe just formal returns of that metric?

Executive
Jay Stasz

Yeah. And Matt, the new store productivity has been very strong like you said, we're north of 100%. Like we said the 2017 class was our strongest year and '18 it was not far behind it. And so far what we're seeing in '19 is a very strong class. Again it is early with a number of those stores. So we've still got a long way to go, but we're very pleased with the results we're seeing so far.

Executive
John Swygert

Yeah, Matt, and keep in mind that the 2019 class we're not surprised on how strong the class is due to the fact that we have that, the 14 or so TRU sites that we actually acquired and bankruptcy that we knew there would be strong stores, they are obviously larger boxes and require larger volumes, but they are actually performing quite well as we expected.

Analyst
Matthew Boss

Right, John. Congrats on the role. So I think, I know you all a great merchants [Technical Issues].

Executive
John Swygert

I appreciate it Matt. Thank you.

Analyst
Matthew Boss

Best of luck.

Executive
John Swygert

Thanks Matt.

Operator
Operator

Thank you. Our next question comes from