Ollie’s Bargain Outlet (OLLI) reported strong second-quarter earnings, exceeding revenue expectations and increasing its sales and earnings guidance for the year. However, shares are trading lower on Thursday despite the positive results. The company’s comparable store sales grew by 5.8%, and it opened nine new stores during the quarter, expanding its footprint to 525 locations across 31 states.
Ollie’s Bargain Outlet (OLLI) is poised for continued growth amidst the weak macro backdrop due to its value pricing strategy and expansion opportunities. Its strong track record of execution, positive same-store sales, and healthy balance sheet support the bullish outlook. Analysts recommend a buy rating, citing OLLI’s ability to capture market share from competitors and benefit from store closures among peers.
National discount retailer Ollie’s Bargain Outlet is set to open a new store in Jackson, Michigan, in August 2023. The store will be located in the former Party City building at 1510 N. West Ave. Ollie’s specializes in selling brand-name closeout merchandise at up to 70% off regular prices. The Jackson store will be the 22nd location in Michigan and will employ between 40 and 50 people.
