Ollie's Bargain Outlet

OLLI

Market cap $7.5B

Ollie's Army loyalty program surges past 16M members in Q2, now fueling 80% of sales and lifting comps through exclusive events.

Here is how Ollie's Bargain Outlet (OLLI) and Unilever PLC (UL) have performed compared to their sector so far this year.

Ollie's Bargain Outlet (OLLI) could produce exceptional returns because of its solid growth attributes.

Despite rising costs and shifting consumer trends, PG, CHD, OLLI and GO are demonstrating resilience by implementing strategic measures to sustain growth.

Here is how Ollie's Bargain Outlet (OLLI) and Unilever PLC (UL) have performed compared to their sector so far this year.

I maintain my buy rating on OLLI, as strong execution and demand support a compelling long-term growth story. OLLI is capitalizing on competitor exits, accelerating store openings, and leveraging its loyalty program to drive transaction-led comparable sales growth. The customer base is broadening, with more affluent and younger shoppers joining, enhancing OLLI's brand relevance and growth outlook.

Ollie's Bargain Outlet (OLLI) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Ollie's has delivered strong growth, benefiting from consumer value focus, Big Lots' bankruptcy, and rapid store expansion. Margins and financials are healthy, with robust balance sheet and conservative guidance, but some cost pressures persist. The sourcing environment remains favorable due to high retail inventories and increased bankruptcies, supporting ongoing sales momentum.

Ollie's Bargain Outlet Holdings NASDAQ: OLLI is not a cheap stock, trading at approximately 40x its current year's earnings forecast, but this market is pricing in growth. The growth pace forecasted by analysts places this stock in the low teens relative to its 2035 consensus, which is a deep value among high-quality retailers.

OLLI's Q2 earnings top estimates with 5% comp growth and stronger margins. The company raises its full-year sales and profit outlook.