Ollie’s Bargain Outlet Holding: Positioned for Growth with Strong Performance and Strategic Adjustments

In a report released today, Charles Grom from Gordon Haskett Capital Corporation maintained a Buy rating on Ollie’s Bargain Outlet Holding (OLLI – Research Report), with a price target of $130.00.

Charles Grom has given his Buy rating due to a combination of factors that suggest Ollie’s Bargain Outlet Holding is poised for growth. Despite recent challenges such as adverse weather affecting same-store sales (SSS), the company has shown a strong underlying performance with a run-rate of approximately 4.0%-5.0% quarter-to-date. This is particularly notable given the tough comparisons from the previous year, and it positions the company for a significant improvement in sequential sales growth.
Furthermore, Ollie’s reported better-than-expected financial results, with same-store sales and earnings per share surpassing consensus estimates. The company has also demonstrated robust transaction growth and an increase in membership for Ollie’s Army, indicating strong consumer engagement. Management’s optimism about the closeout environment and strategic adjustments, such as changes to the Ollie’s Army Days event, are expected to further enhance sales performance. These factors, along with a favorable gross margin outlook despite tariff challenges, support the Buy rating and suggest potential for the stock to outperform.

Grom covers the Consumer Cyclical sector, focusing on stocks such as Dollar General, Home Depot, and Macy’s. According to TipRanks, Grom has an average return of 9.7% and a 59.23% success rate on recommended stocks.

In another report released today, RBC Capital also reiterated a Buy rating on the stock with a $133.00 price target.