Ollie’s Bargain Outlet Stock Surges on Buyback, Store Expansion

Shares of Ollie’s Bargain Outlet Holdings (OLLI) jumped 10% Wednesday when the discount retailer announced a stock buyback and expanded its footprint.

The company said its board approved a $300 million share repurchase program that will run through March 2029. CEO Eric van der Valk explained that Ollie’s “cash generation is strong,” and with no borrowings under its revolving credit facility at the end of fiscal 2024, “we have the ability to fund accelerated growth, return capital to shareholders, and pursue unique opportunities as they arise.”

Ollie’s also noted the recent acquisition of 40 Big Lots stores “securing the path to our accelerated growth target of 75 stores for fiscal 2025,” up from 50 last year. Van der Valk pointed out that with so many retailers shuttering locations or going bankrupt, “there are a considerable number of abandoned customers, merchandise, real estate, and talent in the marketplace.” 

Ollie’s Q4 Comparable Store Sales Top Estimates

Ollie’s reported fourth-quarter comparable store sales rose 2.8% year-over-year, topping Visible Alpha estimates of 2.58%. Adjusted earnings per share (EPS) of $1.19 matched expectations. Revenue increased 2.8% to $667.1 million, missing forecasts.

Ollie’s Bargain Outlet Holdings shares are up nearly 45% over the last year.