Ollie's Bargain Outlet's (OLLI) Q2 same-store sales are expected to be pressured by higher fuel prices and the lack of tax refund dollars to offset the pressure, UBS Securities said.

The company is scheduled to report its Q2 results on Sept. 2.

Ollie's Bargain Outlet started out its Q2 with same-store sales trending below its 2% full-year guidance, and UBS believes same-store sales slowed down materially as the quarter progressed, with Q2 same-store sales now expected to fall 1.5%, according to the note Wednesday.

The investment firm further estimated Q2 EPS of $1.14, in line with consensus, and gross margin of 40.1%, also in line with consensus.

The brokerage said it expects Q3 same-store sales growth of 1%, along with EPS of $0.83, compared with consensus of 1.1% and $0.82. It estimates full-year same-store sales growth of 0.8% and EPS of $4.47, versus consensus of 0.8% and $4.44, respectively.

UBS cut its price target to $85 from $87, with a neutral rating.

Shares of Ollie's Bargain were down 3.2% in Thursday trading.

Price: 71.92, Change: -2.35, Percent Change: -3.16