The revised sales guidance, lowered from a previous ceiling of $3 billion, reflects cooling consumer demand. Chief Executive Eric van der Valk pointed to persistent economic pressure, unfavorable weather, and an aggressive promotional environment as primary headwinds during the second quarter. Same-store sales dipped 1.8%, missing analyst expectations of a 1.1% decline, even as total revenue climbed 9% to $741.3 million.

Despite these struggles, the company outperformed profit expectations, posting adjusted earnings of $1.42 per share. Investors reacted positively to the news, pushing shares up 5% to $76 in premarket trading. Ollie's is following a strategy similar to Dollar Tree and Dollar General, using government refunds to subsidize lower prices and attract price-sensitive shoppers who are increasingly trading down from traditional grocery chains.