AI Analysis | Feedback

• Like Big Lots, but with an even stronger 'treasure hunt' for deeply discounted closeout and surplus merchandise.
• The TJ Maxx or Ross Stores of general merchandise, selling closeouts on everything from groceries to electronics.

AI Analysis | Feedback

• General Merchandise: A diverse range of discounted household goods, home decor, health and beauty products, pet supplies, and seasonal items.
• Food & Groceries: A selection of brand-name non-perishable food, snacks, and beverages offered at reduced prices.
• Books, Toys & Entertainment: Discounted books for all ages, educational toys, games, and various entertainment products.
• Hardware & Tools: Basic hardware items, small hand tools, automotive supplies, and lawn and garden products.

AI Analysis | Feedback

Ollie's Bargain Outlet (symbol: OLLI) is a discount retail chain that primarily sells directly to individual consumers, making it a Business-to-Consumer (B2C) company. Therefore, it does not have major corporate customers.

Ollie's serves the following categories of individual customers:

1. Value-Conscious Shoppers / Bargain Hunters: These are individuals who actively seek out the lowest prices and best deals on a wide range of products. They are often price-sensitive and enjoy the thrill of finding significant discounts on everyday items, household goods, food, and more. This group prioritizes savings over brand loyalty.
2. Opportunistic/Discovery Shoppers: Customers who enjoy the "treasure hunt" experience offered by Ollie's. They might not be looking for a specific item but enjoy browsing the constantly changing inventory of closeouts, overstocks, and salvage merchandise to discover unique finds and unexpected bargains. The novelty and potential for a great score are key motivators for this group.
3. Budget-Conscious Households: Individuals and families who rely on discount retailers like Ollie's to maximize their purchasing power. These customers often have limited disposable income and find Ollie's to be a crucial resource for acquiring essential and non-essential goods at affordable prices, helping them to stretch their household budgets further.

AI Analysis | Feedback

AI Analysis | Feedback

Eric van der Valk, President & Chief Executive Officer

Eric van der Valk was appointed President and Chief Executive Officer of Ollie's Bargain Outlet, effective February 2, 2025. He also joined the company's Board of Directors upon his appointment. This leadership change was part of a succession plan announced in June 2024.

Robert Helm, Executive Vice President, Chief Financial Officer

Robert Helm serves as the Executive Vice President and Chief Financial Officer for Ollie's Bargain Outlet. Prior to joining Ollie's, Mr. Helm held various finance leadership roles at prominent retailers such as Ralph Lauren, rag & bone, and FreshDirect. He began his career in public accounting and auditing, including at KPMG, and is a Certified Public Accountant.

John Swygert, Executive Chairman of the Board

John Swygert has served as the Executive Chairman of the Board for Ollie's Bargain Outlet since February 2025. He previously held the position of Chief Executive Officer and President from December 2019 to February 2025. Before becoming CEO, Mr. Swygert was the Executive Vice President and Chief Operating Officer since January 2018. He initially joined Ollie's in March 2004 as Chief Financial Officer and was promoted to Executive Vice President and Chief Financial Officer in 2011. With over 32 years of experience in discount retail as a finance professional, Mr. Swygert previously served as Executive Vice President and Chief Financial Officer at Factory 2-U Stores, Inc., where he held numerous positions from 1992. He also worked for PETCO Animal Supplies, Inc. in Business Development and Financial Analysis. Mr. Swygert has served on the Board of Directors of Truck Hero Holdings, Inc., a privately held company, since 2018.

Chris Zender, Executive Vice President, Chief Operating Officer

Chris Zender has been the Executive Vice President and Chief Operating Officer since June 2024. Before joining Ollie's, Mr. Zender was the President and Chief Operating Officer of Variety Stores (Variety Wholesalers), where he was promoted to President and Chief Operating Officer in 2023 after joining in 2013 as Executive Vice President and Chief Operating Officer.

James Comitale, Senior Vice President, General Counsel, & Corporate Secretary

James Comitale has served as Senior Vice President and General Counsel since October 2021, and Corporate Secretary since June 2022.

AI Analysis | Feedback

1. Dependence on Sourcing Closeout Merchandise: Ollie's business model is fundamentally built on opportunistically acquiring excess inventory and closeout merchandise from other retailers and manufacturers. The ability to consistently source a sufficient volume of "good stuff cheap" at favorable prices is crucial for their profitability and customer value proposition. A stable retail market with fewer liquidations or increased competition for closeout inventory could significantly impact Ollie's ability to maintain its unique product assortment and margins.
2. Supply Chain Disruptions and Costs: The company is susceptible to supply chain disruptions and escalating costs, including higher freight expenses and incremental tariff expenses. These factors can directly impact gross margins and overall profitability, as demonstrated by past earnings impacts attributed to supply chain headwinds.
3. Intense Competition and Macroeconomic Pressures: Ollie's operates within a highly competitive discount retail sector, facing challenges from both traditional brick-and-mortar discounters and the growing influence of online retailers. Furthermore, economic downturns and broader macroeconomic pressures, such as inflation and rising wages, can affect consumer discretionary spending and increase operational costs, potentially squeezing net margins.

AI Analysis | Feedback

Ollie's Bargain Outlet (OLLI) faces the following clear emerging threats:

• Diminished Supply of Desirable Closeout Merchandise: Manufacturers are increasingly implementing advanced inventory management systems, often leveraging AI and sophisticated data analytics, to minimize overproduction and optimize their supply chains. Concurrently, many brands are expanding their own direct-to-consumer (DTC) outlet channels, both physical and online, to directly offload surplus inventory. This strategy allows brands to capture higher margins and maintain greater control over their brand image, rather than selling to third-party liquidators like Ollie's. This trend directly threatens Ollie's core business model by reducing the volume and quality of the brand-name closeout, overstock, and irregular merchandise available for opportunistic purchasing, making it harder for Ollie's to source "good stuff cheap."

• Increased Competition for Available Closeout Inventory: The market for acquiring closeout merchandise is becoming increasingly competitive. Ollie's faces pressure not only from established off-price retailers (e.g., TJ Maxx, Ross Stores, Burlington) but also from a growing number of online liquidation marketplaces and e-commerce discounters. This heightened competition drives up the acquisition cost of desirable inventory, which can erode Ollie's profit margins or force them to stock less attractive goods. This dilutes Ollie's "treasure hunt" appeal and value proposition, as consumers may find equally compelling or better deals elsewhere through alternative channels.

AI Analysis | Feedback

• The United States Discount Retail market is valued at approximately $102.1 billion in 2025.
• The Discount Department Stores industry in the United States is estimated to be $107.3 billion in 2025.

AI Analysis | Feedback

Ollie's Bargain Outlet (OLLI) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Aggressive New Store Openings: Ollie's is committed to significant store expansion, with plans to open approximately 85 new stores in fiscal year 2025. This includes capitalizing on opportunities presented by the liquidation of other retailers, such as acquiring former Big Lots store leases, to enter established trade areas. The company aims for double-digit annual unit growth and sees potential for a total of 1,000 to 1,300 store locations nationwide in the long term.
2. Comparable Store Sales Growth: A crucial driver for Ollie's is the growth in comparable store sales, which measures sales increases at stores open for at least 15 months. This growth is often fueled by increased customer transactions and a compelling, diversified product mix, demonstrating healthy underlying demand.
3. Expansion and Engagement of Ollie's Army Loyalty Program: The "Ollie's Army" loyalty program is a significant contributor to sales, with members consistently accounting for over 80% of total sales. The company focuses on growing its membership and enhancing engagement through exclusive events and offerings, which leads to increased shopping frequency and higher spending per visit.
4. Opportunistic Sourcing of Closeout Merchandise: Ollie's business model thrives on acquiring closeout, overstock, and salvage merchandise at deeply discounted prices. The current retail environment, marked by bankruptcies and excess inventory across the industry, provides a strong and favorable pipeline of high-quality deals, which enhances merchandise margins and allows Ollie's to offer compelling value to customers.
5. Expansion of Distribution Network: To support its accelerated store expansion and overall growth strategy, Ollie's is actively investing in and expanding its distribution capabilities. This includes opening new distribution centers to improve efficiency, accommodate a larger store base, and facilitate geographic reach into new markets.

AI Analysis | Feedback

Share Repurchases

• A new $300 million share repurchase authorization was approved on March 19, 2025, effective through March 31, 2029.
• As of the end of the first quarter of fiscal 2025 (May 3, 2025), $315.5 million remained available under the current share repurchase authorization.
• The company repurchased $17.1 million worth of common stock in Q1 fiscal 2025 and an additional $12 million in Q2 fiscal 2025.

Outbound Investments

• Ollie's has strategically acquired leases for over 60 former Big Lots store locations through bankruptcy auctions, including 18 in Q1 fiscal 2025, to accelerate its store expansion.

Capital Expenditures

• Expected capital expenditures for fiscal 2025 are projected to be between $83 million and $88 million.
• Capital expenditures in Q1 fiscal 2025 totaled $27 million, primarily directed towards opening new stores and investments in the supply chain.
• In fiscal 2022, capital expenditures were approximately $55 million, with a primary focus on new stores, expanding the York, PA distribution center, costs related to a fourth distribution center, store-level initiatives, and IT projects.