GICS Sector : Consumer Defensive
Ollie's Bargain Outlet Holdings, Inc.operates as a retailer of brand name merchandise.The company offers housewares, bed and bath, food, floor coverings, health and beauty aids, books and stationery, toys, and electronics; and other products, including hardware, candy, clothing, sporting goods, pet and lawn, and garden products.
Ollie's Bargain Outlet reported a robust second quarter, with net sales increasing 18% to $680 million, driven by new store openings and comparable store sales growth of 5%. The company's gross margin expanded 200 basis points to 39.9%, surpassing expectations, with lower supply chain costs and higher merchandise margins being the primary drivers. Adjusted earnings per share (EPS) came in at $0.99, beating estimates of $0.91, representing a 26.9% increase.
Publication Date: Aug -29
The company opened 29 new stores in the second quarter, ending the period with a total of 613 stores, a 17% year-over-year increase. New store performance was strong, with Robert Helm noting that new stores are performing above plan, with robust payback periods. The company's aggressive store expansion strategy is expected to continue, with a commitment to delivering 10% annual unit growth.
Ollie's Bargain Outlet expects gross margins to remain above 40% for 2025, driven by its size and scale, which has resulted in buying power and expanded relationships with suppliers. Eric van der Valk attributed the overdelivery on gross margin to the company's ability to execute well on all fronts, with lower supply chain costs and lower markdowns contributing to the elevated margin. The company's earnings power is expected to drive mid-teens earnings growth in 2026.
With a P/E Ratio of 38.94, P/B Ratio of 4.52, and P/S Ratio of 3.34, the market is pricing in significant growth expectations. The company's ROE (%) of 12.12 and ROIC (%) of 7.66 indicate a strong return on equity and invested capital. Analysts estimate next year's revenue growth at 14.2%, which is in line with the company's commitment to delivering 10% annual unit growth.
The strength of Ollie's consumables business, which is high frequency and high visit, carried the company through the summer quarter. The consolidation of the closeout market has allowed Ollie's to gain market share and leverage its experienced buying team to consume more closeouts. The company's aggressive approach to establishing new relationships and expanding existing ones has led to a significant increase in closeout sales.
Exploring Analyst Estimates for Ollie's Bargain Outlet (OLLI) Q3 Earnings, Beyond Revenue and EPS
Dec -04
4 Consumer Product Stocks to Watch as the Market Resets for 2026
Dec -04
Ollie’s Bargain Outlet Holdings, Inc. $OLLI Stock Holdings Lowered by Cetera Investment Advisers
Dec -02
Ollie’s Bargain Outlet (NASDAQ:OLLI) vs. Leslie’s (NASDAQ:LESL) Head-To-Head Contrast
Dec -02
Ollie's Bargain Outlet Holdings Remains Too Expensive For My Wallet
Dec -01
SFM vs. OLLI: Which Retail Stock Offers Better Upside for Now?
Nov -27
Ollie's Bargain Outlet Holdings, Inc. Announces Third Quarter Fiscal 2025 Earnings Release Date and Conference Call Information
Nov -25
Buy 5 Consumer Staples Stocks Despite the Sector's Weak Show in 2025
Nov -17
Ollie's Bargain Outlet's 10% growth in the Home segment is driven by increasing demand for affordable home goods, expansion of store count, and effective inventory management. Additionally, the company's 'buy-low, sell-low' business model, which offers customers deep discounts on brand-name products, continues to resonate with price-conscious consumers, contributing to the segment's growth.
Ollie's Bargain Outlet's 12% growth in Consumables is driven by increasing demand for everyday essentials, strategic pricing, and effective inventory management. The company's 'buy-low, sell-low' model, which offers customers significant discounts, also contributes to growth. Additionally, Ollie's focus on private label products and partnerships with national brands further boosts sales.
Ollie's Bargain Outlet's 9% growth is driven by increasing popularity of off-price retail, effective inventory management, and strategic store expansions. Additionally, the company's focus on offering a wide range of products at discounted prices, creating a treasure hunt-like experience for customers, and maintaining a strong balance sheet contribute to its growth momentum.
Ollie's Bargain Outlet's 11% seasonal growth is driven by increasing demand for off-price retail, effective inventory management, and strategic store expansions. Additionally, the company's focus on offering a treasure hunt-like shopping experience, competitive pricing, and a loyal customer base contribute to its strong seasonal performance.
Ollie's Bargain Outlet offers a wide range of furniture products, including sofas, loveseats, chairs, tables, desks, beds, and more at discounted prices.
The company sells a variety of housewares, including kitchen utensils, gadgets, cookware, dinnerware, and home decor items at discounted prices.
Ollie's Bargain Outlet offers a range of bed and bath products, including bedding, towels, linens, and more at discounted prices.
The company sells a variety of food and beverage products, including snacks, beverages, and specialty foods at discounted prices.
Ollie's Bargain Outlet offers a range of health and beauty products, including skincare, haircare, and fragrances at discounted prices.
The company sells a variety of toys and games, including puzzles, action figures, dolls, and more at discounted prices.
Ollie's Bargain Outlet offers a range of electronic products, including TVs, laptops, tablets, and more at discounted prices.
The company sells a variety of sports and outdoor products, including bicycles, camping gear, and athletic equipment at discounted prices.
Ollie's Bargain Outlet offers a range of arts and crafts supplies, including paints, canvases, and more at discounted prices.
Ollie's Bargain Outlet Holdings, Inc. operates in a niche market, offering closeout merchandise and excess inventory at discounted prices. The threat of substitutes is low due to the unique nature of its business model.
While customers have some bargaining power due to the availability of alternative discount retailers, Ollie's Bargain Outlet Holdings, Inc.'s unique product offerings and treasure hunt-like shopping experience help to mitigate this power.
Ollie's Bargain Outlet Holdings, Inc. has a strong bargaining position with its suppliers due to its ability to purchase excess inventory at discounted prices. This allows the company to negotiate favorable terms with its suppliers.
The threat of new entrants is low due to the significant barriers to entry in the closeout merchandise market. Ollie's Bargain Outlet Holdings, Inc.'s established relationships with suppliers and its expertise in sourcing and pricing merchandise create a high barrier to entry for new competitors.
While Ollie's Bargain Outlet Holdings, Inc. operates in a niche market, there is still some rivalry with other discount retailers. However, the company's unique business model and focus on closeout merchandise help to differentiate it from competitors.
| Value | |
|---|---|
| Debt Weight | 5.68% |
| Debt Cost | 3.95% |
| Equity Weight | 94.32% |
| Equity Cost | 7.74% |
| WACC | 7.52% |
| Leverage | 6.02% |
Value: 3.1
Growth: 6.8
Quality: 8.3
Yield: 0.0
Momentum: 9.5
Volatility: 7.7
1-Year Total Return ->
Value: 7.4
Growth: 8.3
Quality: 7.4
Yield: 0.0
Momentum: 10.0
Volatility: 2.0
1-Year Total Return ->
Value: 4.1
Growth: 5.7
Quality: 5.6
Yield: 2.0
Momentum: 8.5
Volatility: 8.3
1-Year Total Return ->
Value: 4.1
Growth: 8.4
Quality: 6.2
Yield: 2.0
Momentum: 3.5
Volatility: 7.3
1-Year Total Return ->
Value: 1.8
Growth: 7.7
Quality: 6.0
Yield: 0.0
Momentum: 9.0
Volatility: 5.7
1-Year Total Return ->
Value: 2.8
Growth: 5.2
Quality: 4.8
Yield: 5.0
Momentum: 4.0
Volatility: 3.3
1-Year Total Return ->