Ollie's Bargain Outlet (NASDAQ:OLLI) Shares Gap Up on Earnings Beat

Key Points

• Ollie’s Bargain Outlet beat earnings expectations: Quarterly EPS was $1.42 versus the $1.12 consensus estimate, up from $0.99 a year earlier, while revenue increased 9.1% year over year.
• Shares jumped following the report, opening at $76.00 versus the prior close of $72.34 and last trading near $77.61.
• The retailer expanded its footprint with 15 new stores and grew Ollie’s Army loyalty membership by 12.7%; analysts maintained a “Moderate Buy” consensus with an average price target of $107.29, despite several recent target reductions.

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $72.34, but opened at $76.00. Ollie's Bargain Outlet shares last traded at $77.6080, with a volume of 755,834 shares changing hands.

The company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.12 by $0.30. Ollie's Bargain Outlet had a net margin of 9.13% and a return on equity of 13.43%. The business's quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.99 earnings per share.

Ollie's Bargain Outlet News Roundup

Here are the key news stories impacting Ollie's Bargain Outlet this week:

• Positive Sentiment: Ollie’s earned $1.42 per share, surpassing estimates of approximately $1.12–$1.14 and increasing from $0.99 a year earlier. The result indicates better-than-expected profitability and year-over-year earnings growth. Ollie's Bargain Outlet Q2 Earnings Top Estimates
• Positive Sentiment: Net sales rose 9.1% year over year, supporting the view that Ollie’s closeout merchandise model continues to attract value-focused shoppers. Ollie's Announces Second Quarter Fiscal 2026 Results
• Positive Sentiment: The retailer opened 15 new stores and grew its Ollie’s Army loyalty membership by 12.7%, highlighting continued expansion and customer engagement. Management also updated its fiscal 2026 outlook. Ollie's Fiscal 2026 Results
• Neutral Sentiment: Analysts maintained an overall “Moderate Buy” view ahead of the report, although the available coverage does not indicate a significant change in price targets following the results. Ollie's Receives Moderate Buy Recommendation
• Negative Sentiment: Pre-earnings commentary flagged cautious consumer spending and elevated fuel costs as potential pressures. Investors may also be looking for stronger forward guidance; consequently, the shares’ decline suggests the quarterly beat and growth metrics did not fully offset concerns about the outlook or expectations already reflected in the stock. Ollie's Q2 Earnings Preview

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on OLLI. UBS Group cut their price target on shares of Ollie's Bargain Outlet from $87.00 to $85.00 and set a "neutral" rating for the company in a report on Thursday, August 27th. Truist Financial lowered their target price on Ollie's Bargain Outlet from $112.00 to $80.00 and set a "buy" rating for the company in a research note on Thursday, July 9th. Gordon Haskett reiterated an "accumulate" rating and issued a $90.00 price target (down from $100.00) on shares of Ollie's Bargain Outlet in a report on Thursday, June 4th. Piper Sandler lowered their price objective on Ollie's Bargain Outlet from $114.00 to $113.00 and set an "overweight" rating for the company in a research report on Tuesday, August 18th. Finally, Citigroup dropped their price objective on Ollie's Bargain Outlet from $111.00 to $100.00 and set a "buy" rating for the company in a report on Wednesday, August 26th. Thirteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $107.29.

Hedge Funds Weigh In On Ollie's Bargain Outlet

A number of large investors have recently modified their holdings of the business. Allworth Financial LP grew its stake in Ollie's Bargain Outlet by 301.8% in the third quarter. Allworth Financial LP now owns 221 shares of the company's stock valued at $28,000 after purchasing an additional 166 shares in the last quarter. Cornerstone Planning Group LLC raised its position in shares of Ollie's Bargain Outlet by 218.8% in the fourth quarter. Cornerstone Planning Group LLC now owns 255 shares of the company's stock valued at $27,000 after purchasing an additional 175 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Ollie's Bargain Outlet by 49.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 279 shares of the company's stock worth $31,000 after acquiring an additional 92 shares during the period. Quarry LP bought a new stake in Ollie's Bargain Outlet in the 3rd quarter valued at $55,000. Finally, CENTRAL TRUST Co boosted its position in shares of Ollie's Bargain Outlet by 131.6% in the first quarter. CENTRAL TRUST Co now owns 477 shares of the company's stock valued at $44,000 after acquiring an additional 271 shares during the period.

Ollie's Bargain Outlet Stock Performance

The stock has a market cap of $4.71 billion, a P/E ratio of 19.24, a P/E/G ratio of 1.33 and a beta of 0.50. The stock's fifty day simple moving average is $72.24 and its 200-day simple moving average is $84.76.

About Ollie's Bargain Outlet

Ollie's Bargain Outlet is an American discount retailer specializing in closeout merchandise and surplus inventory across a broad range of categories. The company operates a no-frills retail format that offers branded and private-label products at significant markdowns. Its merchandise mix typically includes housewares, electronics, health and beauty items, food products, beauty supplies, books, toys, and seasonal goods.

Founded in 1982 by Oliver E. “Ollie” Rosenberg, the company is headquartered in Harrisburg, Pennsylvania.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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