Ollie’s Bargain Outlet Boosts Growth with $300M Buyback and Store Expansion
Discover how Ollie’s Bargain Outlet is accelerating growth through a $300 million stock repurchase program and strategic store acquisitions amidst retail market shifts.
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Key Highlights
- Ollie’s Bargain Outlet announces a $300 million share buyback program extending to 2029.
- The retailer expands its footprint by acquiring 40 former Big Lots locations.
- Q4 comparable store sales exceeded analyst expectations, signaling strong operational momentum.
Shares of Ollie’s Bargain Outlet Holdings (OLLI) surged 10% following the announcement of a significant stock repurchase initiative coupled with an aggressive store expansion plan.
The company’s board approved a $300 million share repurchase program set to continue through March 2029. CEO Eric van der Valk emphasized the company’s robust cash flow and zero borrowings at fiscal year-end 2024, enabling Ollie’s to fund rapid growth, reward shareholders, and seize emerging market opportunities.
Ollie’s strategic acquisition of 40 Big Lots stores positions the company to reach its ambitious target of 75 stores by fiscal 2025, up from 50 last year. Van der Valk highlighted the opportunity presented by widespread retail closures and bankruptcies, noting the availability of untapped customers, inventory, real estate, and talent.
Strong Q4 Performance Surpasses Expectations
Ollie’s reported a 2.8% year-over-year increase in comparable store sales for Q4, outperforming Visible Alpha’s estimate of 2.58%. Adjusted earnings per share matched forecasts at $1.19, while revenue rose 2.8% to $667.1 million, slightly below expectations.
Over the past year, Ollie’s shares have gained nearly 45%, reflecting investor confidence in its growth strategy.
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