Ollie's Bargain Outlet blasted past a buy point after edging past third-quarter earnings estimates early Tuesday, though sales were on the light side. Meanwhile, United Natural Foods (UNFI) continued to make good on its turnaround, posting an unexpected profit and stronger outlook for fiscal 2025.

Analysts see Ollie's as positioned to thrive as closeout merchandise competitor Big Lots founders. Big Lots declared bankruptcy in September and undertook a second wave of store closings. Ollie's has taken over the leases of 15 of those stores.

United Natural Foods, a wholesaler of natural and specialty foods, has been optimizing its distribution network, reducing capital intensity and bolstering its  complementary data and analytics services to customers.

Ollie's Bargain Outlet Earnings

Ollie's Bargain Outlet (OLLI) posted Q3 adjusted earnings per share of 58 cents, up 14% from a year ago and a penny ahead of estimates. Sales rose 7.8% to $517.4 million, shy of $519.5 million estimates. Same-store sales, which rose 7% in the year-ago quarter, slipped 0.5% from a year ago vs. flat expectations, according to FactSet.

"We delivered strong earnings on higher sales, gross margin, and disciplined expense control," CEO John Swygert said in the earnings release. He noted that Ollie's "took advantage of a number of real estate opportunities that strengthened our new store pipeline and enhanced our competitive positioning."

Ollie's stood by its full-year EPS outlook, but slightly pared its sales outlook. Same-store sales are now seen rising 2.7% to 3% from a year ago, down from the prior 2.7% to 3.2% range.

United Natural Foods

UNFI earned 16 cents a share in its fiscal first quarter vs. estimates of a one-cent loss and a year-ago loss of four cents. Revenue grew 4.2% to $7.87 billion, topping $7.61 billion estimates.

United Natural Foods raised its full-year EPS view to a range of 40 cents to 80 cents, doubling the bottom of the range from 20 cents.

OLLI, UNFI

OLLI stock surged 14.9% to 112.67 in early Tuesday stock market action. The chart shows a 102.83 buy point from a handle at the end of its 22-week consolidation. The 5% buy zone runs through 107.97.

UNFI surged 28.6% to 31.74 early Tuesday. UNFI, which broke above a buy point on Nov. 21, rose beyond the top of its buy range with Monday's 2.5% gain.

Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

YOU MIGHT ALSO LIKE:

Join IBD Live Each Morning For Stock Tips Before The Open

These Are The Best 5 Stocks To Buy And Watch Now

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

How To Make Money In Stocks In 3 Simple Steps

AI News: Artificial Intelligence Trends and Top AI Stocks To Watch