Ollie's Bargain Outlet Holdings Inc Earnings
Ollie's Bargain Outlet Holdings Inc (NASDAQ: OLLI), America's largest retailer of closeout merchandise and excess inventory, recently announced its earnings for the fourth quarter and the full fiscal year ending 2024. Despite facing a challenging retail environment, Ollie's demonstrated resilience with revenue growth and strategic expansion plans.
Ollie's Bargain Outlet Holdings Inc Results
The following table provides key financial metrics for the fourth quarter and the fiscal year 2024, with comparisons to the previous year:
| Metric | Q4 FY2024 (in millions) | Q4 FY2023 (in millions) | % Change YoY | FY2024 (in millions) | FY2023 (in millions) | % Change YoY |
|---|---|---|---|---|---|---|
| Net Sales | $667.1 | $648.9 | +2.8% | $2,272 | $2,103 | +8.0% |
| Net Income | $68.6 | $76.5 | -10.4% | $199.8 | $181.4 | +10.1% |
| Adjusted Net Income | $73.4 | $76.3 | -3.8% | $202.4 | $180.4 | +12.2% |
| Earnings Per Share (EPS) | $1.11 | $1.23 | -9.8% | $3.23 | $2.92 | +10.6% |
| Adjusted EPS | $1.19 | $1.23 | -3.3% | $3.28 | $2.91 | +12.7% |
| Adjusted EBITDA | $109.4 | $110.6 | -1.1% | $313.1 | $275.2 | +13.8% |
Note : *Adjusted net income and EPS exclude one-time equity award expenses and other adjustments.
Revenue Breakdown
Ollie's revenue performance across major segments showcased growth driven by new store openings and sales in existing stores. The following table highlights revenue performance metrics:
| Segment | Revenue Growth |
|---|---|
| Total Net Sales Increase | 8.0% |
| Comparable Store Sales Increase | 2.8% |
| New Store Growth Contribution | Significant |
Analysis : The company saw a robust 9.8% increase in net sales, excluding the 53rd week of fiscal 2023. Comparable store sales increased by 2.8%, facilitated by balanced growth in transactions and basket size, while new store openings significantly contributed to overall revenue growth.
Key Developments
In fiscal 2024, Ollie's opened 50 new stores across 31 states, an increase of 9.2% over the previous year, culminating in 559 total stores. The aggressive expansion strategy is set to continue with a plan to open 75 new stores in fiscal 2025, highlighting the company's commitment to reaching new markets and increasing its footprint. The acquisition of 40 former Big Lots store locations further underscores Ollie's growth strategy, aimed at capturing the share of value-conscious consumers.
Additionally, the company made a strategic investment of $5.7 million in repurchasing shares during the fourth quarter, contributing to a total of $53 million invested in fiscal 2024. A new share repurchase authorization of $300 million through March 2029 further reflects confidence in the company's trajectory and shareholder value.
Comments from Company Officers
Eric van der Valk, President and CEO, expressed satisfaction with the financial results and business trends: "We are delivering unprecedented value through an ever-changing assortment that combines quality, national brands, and pricing in a way that can only be found at Ollie's." He emphasized the strategic opportunities arising from market conditions, stating that the company is well-positioned to capitalize on abandoned retail assets.
Dividends and Share Repurchases
As of February 1, 2025, Ollie's had a remaining $32.7 million available for future share repurchases under its existing authorization. The additional $300 million share repurchase plan reflects the company's confidence in its balance sheet and long-term growth plans.
Ollie's Bargain Outlet Holdings Inc Stock Forecast
Drawing from the strong financial foundation and expansion plans, Ollie's stock performance is poised for a promising trajectory. The strategic store openings, cost management, and shareholder-friendly initiatives provide a solid foundation for sustained growth. Fundamental analysis suggests that Ollie's stock has potential for both high and low projections in the range of $60 to $75 per share based on market conditions, competitive dynamics, and execution of its expansion strategy.
In conclusion, Ollie's Bargain Outlet Holdings Inc. has shown resilience through strategic expansion, strong fiscal performance, and shareholder initiatives. While the retail landscape poses challenges, Ollie's adaptability and strategic vision suggest a positive outlook moving forward.
