Can OLLI sustain its Q2 2025 EPS growth in 2026?

**Ollie's Bargain Outlet Holdings Inc (OLLI) is poised to sustain its EPS growth in 2026**, based on several key factors indicating robust financial health and strategic growth initiatives: 1. **Consistent Growth Trajectory**: OLLI has demonstrated a strong upward trajectory in net income, climbing from $102 million in 2023 to nearly $200 million in 2025. This consistent growth suggests a solid foundation for sustaining EPS growth in the upcoming year. 2. **Strategic Expansion**: The company plans to open 75 new stores in fiscal 2025, up from 50 in 2024. This aggressive expansion into new markets, coupled with the acquisition of 40 former Big Lots locations, is a clear indication of OLLI's confidence in its ability to grow and capture market share. 3. **Financial Stability**: OLLI's financial stability is evident from its strong balance sheet, with $429 million in cash and short-term investments as of the end of 2024. This financial strength provides a solid base for investing in growth initiatives and sustaining EPS growth. 4. **Market Position and Customer Engagement**: OLLI's unique market position, characterized by offering brand-name merchandise at reduced prices, has been instrumental in driving growth. The company's customer loyalty program, Ollie's Army, boasts 15.1 million members, underscoring strong brand engagement and potential for future revenue growth. 5. **Historical Performance**: The company's historical performance, including a 2.8% increase in comparable store sales for Q4, and a 1% to 2% growth in net sales forecast for 2025, suggests a positive trend that can be expected to continue. In conclusion, considering OLLI's historical growth trajectory, strategic expansion plans, financial stability, strong market position, and customer engagement, it is reasonable to anticipate that OLLI can sustain its EPS growth in 2026.