** Shares of discount retailer Ollie's Bargain Outlet OLLI.O up 5% at $102.96 premarket

** Co tops Q3 profit expectations as lower supply chain costs help soften the blow from weaker sales

** Q3 margin rises 100 bps to 41.4%

** Adjusted income per share of 58 cents edges past estimates of 57 cents - LSEG

** Q3 net sales rise 7.8% to $517.4 mln, in line with estimates

** Still comparable sales fall wider-than-expected at 0.5% in Q3

** Co trims annual net sales forecast to $2.270 billion -$2.280 billion from $2.276 billion - $2.291 billion expected earlier as retailers weather through a promotion-heavy holiday shopping season with muted sales expectations

** OLLI maintains annual net-income-per-share expectations at $3.22 to $3.30

** As of last close, stock up 29.2% YTD

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))