Ollie's Bargain Outlet Holdings: Strong Q1 Results and Robust Expansion

Ollie's Bargain Outlet Holdings reported Q1 revenue up 13.4% YoY to $577m, driven by the opening of a record 25 new stores. EBITDA rose 4.2% to $69m, and net profit increased 2.8% to $47.6m. The company's stock rose 18.7%, and USB upgraded its price target to $125. Ollie's has expanded to 31 states and operates over 541 stores, with approximately 9,350 employees.

Ollie's Bargain Outlet Holdings, Inc. (Ollie's) reported robust financial results for the first quarter of 2025, with revenue up 13.4% year-over-year (YoY) to $577 million, EBITDA up 4.2% to $69 million, and net profit increasing 2.8% to $47.6 million. The company's stock price surged 18.7%, and USB upgraded its price target to $125. Ollie's has expanded its footprint to 31 states, operating over 541 stores and employing approximately 9,350 people [1].

The company's growth was driven by the opening of a record 25 new stores, including 18 former Big Lots locations. This expansion has allowed Ollie's to capitalize on the retail disruption caused by the closure of numerous stores and the resulting excess inventory. The company's gross margin remained strong at 40%, despite the increased costs associated with new store openings and the acquisition of Big Lots locations [1].

Ollie's has been able to maintain its competitive edge by leveraging its Ollie's Army loyalty program, which now has 15.5 million members. These members account for 80% of sales and spend significantly more per shopping trip compared to non-members. The company is continuing to test alternative conversion methods to attract and retain new customers, aiming to grow its Ollie's Army membership further [1].

The company's strategy of focusing on closeout merchandise and leveraging its buying power has proven successful. Despite the challenging retail environment, Ollie's continues to see strong deal flow and is well-positioned to capitalize on the opportunities presented by retail store closures and supply chain disruptions [1].

Looking ahead, Ollie's aims to reach its goal of 1,050 stores by converting more Big Lots locations and expanding its digital marketing capabilities. The company is optimistic about its ability to continue growing its market share and maintaining its strong financial performance in the face of ongoing retail disruptions [1].

References:

[1] https://www.forbes.com/sites/pamdanziger/2025/07/10/how-ollies-bargain-outlet-capitalizes-on-retail-disruption/