Should Ollie's Expansion Into Former Big Lots Stores Prompt a Closer Look From OLLI Investors?

• Ollie's Bargain Outlet recently announced plans to open nine additional stores across seven states, further advancing its expansion through the acquisition of former Big Lots locations.
• This expansion reflects Ollie's continued push into new markets, underscoring how real estate opportunities from other retailers' closures can fuel its growth strategy.
• We'll explore how Ollie's aggressive store expansion and entry into new locations could influence its investment narrative and future growth outlook.

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Ollie's Bargain Outlet Holdings Investment Narrative Recap

To hold Ollie's Bargain Outlet stock, you need to believe in the company's ability to profitably expand its storebase in new and existing markets, while managing inventory sourcing and keeping operating costs low. The recent announcement of nine new store openings is significant to its short-term growth story, as it directly addresses the main catalyst: accelerating revenue through rapid expansion into available retail locations. At the same time, the risk remains that overextension or underperformance of new stores could offset expected gains, it’s a material consideration in the current environment.

The July 17th opening of Ollie’s 600th store, marking entry into its 34th state, strongly aligns with the latest news of further expansion. These milestones highlight how Ollie’s continues to capitalize on available retail real estate following other brands’ closures, reinforcing its push for double-digit unit growth, an important catalyst frequently cited by investors tracking future earnings and revenue momentum.

However, it's important to remember that, despite this growth, the pace and success of store openings are not guaranteed and ...

Read the full narrative on Ollie's Bargain Outlet Holdings (it's free!)

Ollie's Bargain Outlet Holdings' narrative projects $3.6 billion in revenue and $341.3 million in earnings by 2028. This requires 13.3% yearly revenue growth and a $128 million earnings increase from $213.3 million today.

Uncover how Ollie's Bargain Outlet Holdings' forecasts yield a $146.60 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Estimates of Ollie’s fair value in the Simply Wall St Community span from US$76 to US$4,459 across four opinions. With expansion plans accelerating, contrasting views especially reflect concerns about the risk of store base maturation and long-term store performance, explore several viewpoints to form your own perspective.

Explore 4 other fair value estimates on Ollie's Bargain Outlet Holdings - why the stock might be a potential multi-bagger!

Build Your Own Ollie's Bargain Outlet Holdings Narrative

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• A great starting point for your Ollie's Bargain Outlet Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Ollie's Bargain Outlet Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ollie's Bargain Outlet Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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