Loop Capital Sticks to Hold Rating on Ollie's Bargain Outlet with $140 Price Target

Loop Capital Markets analyst Anthony Chukumba maintains a Hold rating for Ollie's Bargain Outlet Holding with a $140.00 price target, despite a Moderate Buy analyst consensus rating with a $139.00 average price target. Chukumba has a 5-star rating with a 13.2% average return and 69.44% success rate. The company has a one-year high of $141.74 and a one-year low of $86.29, with an average volume of 1.12M.

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) reported robust financial results for the second quarter of 2025, surpassing analyst expectations. The company posted an earnings per share (EPS) of $0.99, which exceeded the forecast of $0.92, and reported revenue of $680 million, above the anticipated $660.75 million. This positive performance led to a pre-market stock price increase of 6.13%, bringing the price to $138.60.

Key Takeaways

- Ollie’s achieved an 18% increase in net sales, reaching $680 million.
- The company’s EPS of $0.99 surpassed expectations by 7.61%.
- Pre-market stock price surged 6.13% following the earnings announcement.
- Ollie’s opened 54 new stores in the first half of the year, quadrupling last year’s number.
- The company raised its full-year store opening target to 85.

Company Performance

Ollie’s Bargain Outlet demonstrated strong growth in Q2 2025, with net sales increasing by 18% to $680 million. The company also reported a 5% growth in comparable store sales. This performance is attributed to Ollie’s unique "closeout" business model, which has allowed it to capitalize on retail bankruptcies and store closures. The company continues to expand its footprint, opening 54 new stores in the first six months of the year and celebrating its 600th store opening.

Financial Highlights

- Revenue: $680 million, up 18% year-over-year
- Earnings per share: $0.99, a 26.9% increase from the previous year
- Gross margin increased by 200 basis points to 39.9%
- Total cash and investments increased by 30% to $460 million

Earnings vs. Forecast

Ollie’s reported an EPS of $0.99, exceeding the forecast of $0.92 by 7.61%. Revenue was also higher than expected, coming in at $680 million against a forecast of $660.75 million. This marks a significant earnings surprise, reflecting the company’s successful execution of its strategic priorities.

Market Reaction

Following the earnings announcement, Ollie’s stock price rose by 6.13% in pre-market trading, reaching $138.60. This positive reaction is a testament to investor confidence in the company’s performance and outlook. The stock is now approaching its 52-week high of $141.74, indicating strong market sentiment.

Outlook & Guidance

Looking forward, Ollie’s has raised its full-year store opening target to 85 stores. The company expects full-year net sales to be between $2.631 billion and $2.644 billion, with comparable store sales growth of 3-3.5%. Ollie’s also aims for a gross margin target of 40.3% and operating income between $292 million and $298 million.

Analyst Consensus

Analyst consensus from InvestingPro shows strong confidence in the company’s future, with price targets ranging from $105 to $159 per share.

References

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-ollies-bargain-outlet-beats-q2-2025-expectations-93CH-4214941