Why Ollie's (OLLI) Is Up 9.6% After 600th Store Opening and Expansion Into New State And What's Next

• Ollie's Bargain Outlet Holdings recently celebrated the grand opening of its 600th store in Belmont, New Hampshire, marking its entry into the 34th state and bringing approximately 50 to 60 new jobs locally.
• This milestone highlights Ollie's ongoing expansion using former Big Lots locations, supporting both its store count growth and economic contributions to new communities.
• We'll explore how Ollie's milestone store opening and market entry contribute to its ongoing growth strategy and investment narrative.

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Ollie's Bargain Outlet Holdings Investment Narrative Recap

To be a shareholder in Ollie's Bargain Outlet Holdings, you need to believe in the company’s ability to keep expanding its store base efficiently, leveraging closeout inventory channels and repurposing former retail sites. The 600th store opening in New Hampshire underscores Ollie’s push for nationwide scale; however, unless these new stores deliver accelerated same-store sales or notably higher margins in the short term, the near-term earnings impact is likely modest. The biggest current risks remain around pre-opening costs and managing operational challenges in newly acquired Big Lots locations.

Among recent announcements, the acquisition of 40 additional store leases from Big Lots is closely tied to the company’s ongoing expansion, including the new Belmont location. This move amplifies the growth catalyst from store openings, but also increases exposure to the operational complexities and start-up costs associated with rapid scaling, factors that investors should monitor in the context of Ollie’s store profitability targets.

By contrast, investors should be aware that heavy up-front investments in store rollouts can pressure margins if expected returns are delayed…

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

Ollie's Bargain Outlet Holdings is projected to reach $3.2 billion in revenue and $296.5 million in earnings by 2028. This outlook assumes a 12.0% annual revenue growth rate and a $96.7 million increase in earnings from the current level of $199.8 million.

Uncover how Ollie's Bargain Outlet Holdings' forecasts yield a $127.88 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate fair value for Ollie’s between US$71.86 and US$4,458.90 based on four perspectives, highlighting wide divergence in views. With sizable pre-opening expenses remaining a risk, you may want to explore how your outlook compares against these varied expectations.

Explore 4 other fair value estimates on Ollie's Bargain Outlet Holdings - why the stock might be worth 47% less than the current price!

Build Your Own Ollie's Bargain Outlet Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ollie's Bargain Outlet Holdings research is our analysis highlighting 1 key reward 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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