Here's Why Ollie's Bargain Outlet Stock Dropped Today
Shares of Ollie's Bargain Outlet Holdings (NASDAQ: OLLI) dropped on Wednesday following the monthly retail report and disappointing financial results from Target. Ollie's stock closed the day down 8.5% but had been down as much as 10% earlier.
Ollie's acquires its merchandise at closeout prices and then sells it cheap to its customers. Its in-stock inventory can be unpredictable, as can its financial results. But generally speaking, investors lump Ollie's stock in with the bigger basket of retail stocks.
Target stock plummeted today even though its sales were up slightly year over year. However, its profits fell, in part because it marked down prices to move inventory -- this had an impact on many retail stocks. Investors may also fear that by discounting merchandise, Target is getting too close to Ollie's discount turf.
Source Fool.com
