Analysts at RBC Capital provided their outlook on Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) ahead of the upcoming Q2 earnings announcement, modeling flat comp sales (vs. Street’s 0.7% growth) and EPS of $0.33 (in-line with Street).

The analysts upgraded the company to Outperform on June 9 expecting to see sequential improvement in H2/22 and into 2023 driven by (1) improved DC throughput, (2) less reliance on the spot market for freight, and (3) the availability of higher quality closeout deals.

While the analysts remain committed to this thesis, they expect actual Q2 results to be somewhat noisy. With shares up approximately 15% relative to the market since reporting Q1, the analysts lean more cautious into the print.