Core Points - Ollie's Bargain Outlet Holdings, Inc. has announced a new share repurchase authorization of $300 million for its outstanding common stock, effective through March 31, 2029 [1] - The company has repurchased nearly $414 million, or 5.5 million shares, since initiating its first buyback in 2019 [1] - The company reported having $429 million in cash and short-term investments with no borrowings under its revolving credit facility at the end of fiscal 2024, indicating strong cash generation [2] Company Overview - Ollie's is the largest retailer of closeout merchandise and excess inventory in America, offering a variety of brand name products at discounted prices [3] - The company operates 575 stores across 31 states and continues to expand its footprint [3]

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported a 2.8% increase in comparable store sales for Q4 fiscal 2024, with net sales rising to $667.1 million from $648.9 million in Q4 fiscal 2023 [8][14] - The company plans to open 75 new stores in fiscal 2025, up from 50 in fiscal 2024, indicating a strong growth strategy [29][28] - The adjusted net income for Q4 fiscal 2024 was $73.4 million, or $1.19 per diluted share, reflecting a decrease from the previous year's adjusted net income of $76.3 million, or $1.23 per diluted share [14][21] Financial Performance - For the full fiscal year 2024, total net sales increased by 8.0% to $2.272 billion, with comparable store sales rising by 2.8% [9][16] - Gross margin improved to 40.3% in fiscal 2024 from 39.6% in fiscal 2023, primarily due to favorable supply chain costs [16] - Selling, general, and administrative expenses as a percentage of net sales increased to 27.0% in fiscal 2024 from 26.8% in fiscal 2023 [17] Operational Highlights - The company opened 13 new stores in Q4 fiscal 2024, ending the quarter with a total of 559 stores, a 9.2% increase year-over-year [8][9] - Pre-opening expenses rose to $4.8 million in Q4 fiscal 2024 from $1.6 million in Q4 fiscal 2023, driven by earlier store openings [12] - Operating income for Q4 fiscal 2024 was $87.7 million, which included a one-time expense of $5.5 million related to equity awards [13] Balance Sheet and Cash Flow - As of the end of fiscal 2024, the company had cash and cash equivalents of $428.7 million, up from $353.2 million at the end of fiscal 2023 [23] - Inventories increased by 9.2% to $552.5 million, reflecting the company's accelerating store growth [24] - Capital expenditures for fiscal 2024 were $120.6 million, primarily for new store development and distribution center completion [25] Future Outlook - For fiscal 2025, the company estimates net sales between $2.564 billion and $2.586 billion, with a comparable store sales increase of 1% to 2% [29][30] - The projected adjusted net income for fiscal 2025 is between $225 million and $232 million, translating to an adjusted net income per diluted share of $3.65 to $3.75 [30]

Financial Results - Ollie's Bargain Outlet is set to release its fourth-quarter financial results on March 19, with expected earnings of $1.19 per share, a decrease from $1.23 per share in the same period last year [1] - The company projects quarterly revenue of $674.52 million, an increase from $648.95 million a year earlier [1] Leadership Changes - On February 3, Ollie's Bargain Outlet announced the appointment of Eric van der Valk as President & Chief Executive Officer [2] Stock Performance - Ollie's Bargain Outlet shares fell 4.1% to close at $99.06 [3] Analyst Ratings - RBC Capital analyst Steven Shemesh maintained an Outperform rating and raised the price target from $130 to $133 [5] - Wells Fargo analyst Edward Kelly maintained an Equal-Weight rating and increased the price target from $95 to $105 [5] - JP Morgan analyst Matthew Boss maintained an Overweight rating and boosted the price target from $105 to $135 [5] - Craig-Hallum analyst Jeremy Hamblin maintained a Buy rating and increased the price target from $107 to $130 [5] - Truist Securities analyst Scot Ciccarelli maintained a Buy rating and raised the price target from $109 to $121 [5]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. is expected to report a revenue increase for Q4 fiscal 2024, but a decline in earnings per share is anticipated compared to the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Q4 revenues is $672.1 million, reflecting a 3.6% year-over-year increase [1]. - The earnings per share estimate remains at $1.20, indicating a 2.4% decrease year-over-year [2]. - The company has a trailing four-quarter earnings surprise of 5%, with the last quarter outperforming estimates by 1.8% [2]. Group 2: Key Factors Influencing Performance - Ollie's business model of "buying cheap and selling cheap," along with cost-containment efforts and a focus on store productivity, are expected to positively impact revenue [3]. - The Ollie's Army loyalty program has seen continuous membership growth, with 14.8 million active members contributing to over 80% of sales [3]. - Comparable store sales growth is projected at 2.8% for the final quarter [3]. Group 3: Operational Strategies - The company's disciplined inventory management and sourcing from closeouts and overstocks ensure stores are well-stocked, enhancing customer experience and foot traffic [4]. - Ongoing store expansion, including the acquisition of "99 Cents Only" stores and leases for former Big Lots locations, is driving incremental revenue [5]. Group 4: Margin Considerations - There are concerns regarding margins due to potential increases in SG&A expenses, which are expected to rise by 3.8% year-over-year [6]. - An operating margin contraction of 110 basis points is anticipated [6]. Group 5: Earnings Prediction Model - The Zacks model indicates that Ollie's Bargain does not conclusively predict an earnings beat this time, with an Earnings ESP of +0.28% and a Zacks Rank of 4 (Sell) [7][8].

Core Viewpoint - Ollie's Bargain Outlet (OLLI) is expected to report a quarterly earnings per share (EPS) of $1.20, reflecting a 2.4% decline year-over-year, while revenues are projected to increase by 3.6% to $672.11 million [1] Earnings Estimates - The consensus EPS estimate has been adjusted downward by 0.4% over the past 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock performance [3] Key Metrics - Comparable store sales change is estimated at 2.6%, down from 3.9% a year ago [5] - The number of stores at the end of the period is projected to be 559, compared to 512 last year [5] - Analysts forecast 13 new stores, an increase from 7 in the previous year [5] - The number of stores open at the beginning of the period is expected to reach 546, up from 505 a year ago [6] Market Performance - Ollie's Bargain Outlet shares have decreased by 5.1% in the past month, while the Zacks S&P 500 composite has declined by 9.6% [7] - With a Zacks Rank of 4 (Sell), OLLI is anticipated to underperform the overall market in the near term [7]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. will release its fourth quarter and full-year fiscal 2024 financial results on March 19, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call hosted by the President and CEO, Eric van der Valk, and the Executive Vice President and CFO, Robert Helm, at 8:30 a.m. Eastern Time on the same day [1] - The company encourages interested parties to pre-register for the live conference call and provides options for listening to a live webcast or replay through its Investor Relations section [2] Group 2: Company Overview - Ollie's is recognized as America's largest retailer of closeout merchandise and excess inventory, offering significant value on brand name products across various departments [3] - The company operates 571 stores across 31 states and continues to expand its presence [3]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. is set to release its fourth quarter and full-year fiscal 2024 financial results on March 19, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call hosted by the President and CEO, Eric van der Valk, and the Executive Vice President and CFO, Robert Helm, at 8:30 a.m. Eastern Time on the same day [1] - The company encourages interested parties to pre-register for the live conference call and provides options for listening to a live webcast or replay through its Investor Relations section [2] Group 2: Company Overview - Ollie's is recognized as America's largest retailer of closeout merchandise and excess inventory, offering significant value on brand name products across various departments [3] - The company operates 571 stores across 31 states and continues to expand its presence [3]

Core Insights - Ollie's Bargain Outlet is accelerating its expansion by acquiring 40 former Big Lots store leases, increasing the total number of former Big Lots locations to 63, pending bankruptcy court approval [1][4] Group 1: Expansion Strategy - The newly acquired Big Lots locations align with Ollie's growth strategy, being the right size, having favorable lease terms, and catering to budget-conscious shoppers [2] - The company plans to prioritize opening these newly acquired stores over previously planned locations, aiming to open around 75 stores in 2025, exceeding its typical 10% annual growth target [3] Group 2: Market Position and Business Model - Ollie's operates 568 stores across 31 states and aims to grow to 1,300 locations nationwide, indicating a significant growth initiative within the competitive retail landscape [4] - The company's business model focuses on "buying cheap and selling cheap," which, along with cost-control efforts and the expansion of the Ollie's Army rewards program, strengthens its market position [5] Group 3: Competitive Advantage - Ollie's success relies on offering brand-name merchandise at deep discounts, with prices 20% to 70% lower than department stores, attracting value-conscious consumers [6] - The company has a robust supply-chain infrastructure, supported by a new distribution center in Princeton, IL, which enhances its ability to manage an expanding footprint and serve up to 750 stores [7] Group 4: Financial Performance and Challenges - Ollie's strategic expansion aims to strengthen market presence and drive sales, supporting future financial performance, although challenges include margin pressures from higher SG&A expenses and shifts in product mix [8]

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. has announced the acquisition of 40 former Big Lots store leases, bringing the total to 63, pending bankruptcy court approval [1][2]. Group 1: Acquisition Details - The acquisition includes 40 additional store leases from Gordon Brothers, which aligns with the company's growth strategy and operational plans [1][2]. - The new store locations are considered favorable due to their size, lease terms, and proximity to existing trade areas, catering to value-conscious consumers [2]. Group 2: Growth Strategy - The company plans to adjust its new store openings to prioritize the acquired locations, aiming to accelerate new store openings in 2025 beyond the 10% annual growth target, with an estimated 75 new units [2]. - Ollie's currently operates 568 stores across 31 states, focusing on closeout merchandise and excess inventory, offering significant value on brand-name products [3].

Core Viewpoint - Ollie's Bargain Outlet Holdings, Inc. has announced the acquisition of 40 former Big Lots store leases, bringing the total to 63, pending bankruptcy court approval [1][2] Group 1: Acquisition Details - The acquisition includes 40 additional store leases from Gordon Brothers, which aligns with the company's growth strategy and operational plans [1][2] - The acquired locations are deemed suitable due to their size, favorable lease terms, and proximity to existing trade areas, catering to value-conscious consumers [2] Group 2: Growth Strategy - The company plans to adjust its new store openings to prioritize the acquired stores, aiming to accelerate new store openings in 2025 beyond the 10% annual growth target, with an estimated 75 new units [2] - Ollie's currently operates 568 stores across 31 states, focusing on closeout merchandise and excess inventory, offering significant value on brand name products [3]