Ollie's Bargain Outlet Holdings, Inc. (OLLI): history, ownership, mission, how it works & makes money

A Brief History of Ollie's Bargain Outlet Holdings, Inc.

Company Overview

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) operates a chain of retail stores specializing in discount merchandise. Founded in 1982 and headquartered in Harrisburg, Pennsylvania, the company has grown significantly, expanding its footprint across the United States.

Financial Performance

As of August 3, 2024, Ollie's reported a net income of $95.3 million for the first half of fiscal 2024, marking an increase of 30.3% from $73.2 million in the same period the previous year. The company's adjusted EBITDA rose to $143.9 million, up 26.8% from $113.4 million year-over-year.

Store Expansion and Operations

During the twenty-six weeks ended August 3, 2024, Ollie's opened 13 new stores, compared to 15 in the same period the previous year. The company now operates 428 stores across 27 states. The total capital expenditures for the year are projected to be around $104 million, which includes the acquisition of ten former 99 Cents Only Store locations, with an emphasis on enhancing its distribution capacity.

Cash Flow and Liquidity

As of August 3, 2024, Ollie's reported cash and cash equivalents of $353.1 million and $89.0 million available under its $100 million revolving credit facility. The net cash provided by operating activities for the twenty-six weeks was $84.1 million, a decline from $109.8 million in the previous year, primarily due to changes in working capital.

Stock Performance and Share Repurchase

As of August 3, 2024, Ollie's had repurchased 418,274 shares of its common stock for $31.4 million. The company has a remaining authorization of $54.2 million under its share repurchase program, which was extended until March 31, 2026.

Outlook

Looking ahead, Ollie's plans to continue its expansion strategy with an estimated 50 new store openings in fiscal 2024. The company has also completed construction on its fourth distribution center in Princeton, IL, which will enhance its supply chain capabilities.

A Who Owns Ollie's Bargain Outlet Holdings, Inc. (OLLI)

Ownership Structure

As of 2024, Ollie's Bargain Outlet Holdings, Inc. (OLLI) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. Below is a detailed breakdown of the major shareholders:

Major Institutional Shareholders

The following table lists the top institutional shareholders of Ollie's Bargain Outlet Holdings, Inc. as of 2024:

Insider Ownership

Insider ownership at Ollie's Bargain Outlet Holdings, Inc. is reflected in the following table, which includes key executives and their respective holdings:

Recent Stock Performance

As of August 2024, Ollie's Bargain Outlet Holdings, Inc. has shown a steady performance in the stock market:

Share Repurchase Program

Ollie's has an active share repurchase program, which as of August 2024 has the following details:

Recent Financial Highlights

For the second quarter of fiscal 2024, Ollie's reported the following financial performance metrics:

Conclusion on Ownership Dynamics

The ownership of Ollie's Bargain Outlet Holdings, Inc. reflects a mix of institutional and individual investors, with significant insider holdings that indicate strong management commitment to the company's success. The active share repurchase program and steady financial performance further enhance its attractiveness to current and potential shareholders.

Ollie's Bargain Outlet Holdings, Inc. (OLLI) Mission Statement

Company Overview

Ollie's Bargain Outlet Holdings, Inc. operates a chain of retail discount stores. The mission statement emphasizes providing customers with "good stuff at great prices." The focus is on delivering value through a wide array of merchandise, including closeout, excess inventory, and other discounted goods.

Financial Performance

As of August 3, 2024, Ollie's reported the following financial metrics for the second quarter of fiscal 2024:

Growth Strategy

Ollie's continues to expand its footprint, having opened 9 new stores in the second quarter of fiscal 2024, compared to 6 in the same period in fiscal 2023. The company plans to open approximately 50 new stores during fiscal 2024, supported by its strong capital expenditures, which amounted to $38.3 million in Q2 2024, up from $26.2 million in Q2 2023.

Market Position

Ollie's positions itself within the discount retail sector, leveraging its purchasing power and relationships with manufacturers to offer a variety of products at competitive prices. The company has reported a gross margin of 37.9% in Q2 2024, slightly down from 38.2% in Q2 2023, attributed to changes in product mix.

Shareholder Value

As part of its commitment to shareholder return, Ollie's repurchased 418,274 shares for $31.4 million during the twenty-six weeks ended August 3, 2024. The company maintains a remaining share repurchase authorization of $54.2 million.

Liquidity and Capital Resources

As of August 3, 2024, Ollie's had $353.1 million in cash and cash equivalents and short-term investments. The company has a $100 million revolving credit facility, with $89 million available to borrow, indicating strong liquidity to support ongoing operations and growth initiatives.

Key Financial Metrics

Conclusion on Mission Statement Alignment

The mission statement of Ollie's Bargain Outlet Holdings, Inc. reflects a commitment to affordability and customer satisfaction. The company's growth, profitability, and operational strategies align closely with its mission to deliver value to customers while enhancing shareholder returns.

How Ollie's Bargain Outlet Holdings, Inc. (OLLI) Works

Business Model and Operations

Ollie's Bargain Outlet Holdings, Inc. operates as a retailer of closeout merchandise, offering a wide variety of products including food, household items, and seasonal goods. The company focuses on providing customers with deeply discounted prices on brand-name products. As of August 3, 2024, Ollie's operated 525 stores across the United States, an increase from 482 stores one year prior.

Financial Performance

For the twenty-six weeks ended August 3, 2024, Ollie's reported net sales of $1.087 billion, up from $973.7 million for the same period in 2023, representing an increase of 11.7%. The increase was driven by a non-comparable store sales increase of $70.7 million and a comparable store sales increase of $42.8 million.

Store Growth and Expansion

During the twenty-six weeks ended August 3, 2024, Ollie's opened 13 new stores, compared to 15 during the same period in 2023. The company plans to continue expanding its footprint, with expectations to open approximately 50 stores during fiscal 2024.

Cost Structure

Ollie's cost structure includes selling, general, and administrative expenses (SG&A), which increased to $288.1 million from $264.9 million year-over-year. As a percentage of net sales, SG&A decreased to 26.5% from 27.2%, reflecting improved efficiency. Pre-opening expenses rose to $7.3 million, attributed to the startup of a new distribution center and new store openings.

Liquidity and Capital Resources

As of August 3, 2024, Ollie's had $353.1 million in cash and cash equivalents and short-term investments. The company also had $89.0 million available for borrowing under its $100 million revolving credit facility. Capital expenditures for the twenty-six weeks ended August 3, 2024, totaled $65.2 million, compared to $45.2 million in the same period of 2023.

Key Financial Ratios

Stock Performance

Ollie's stock has seen fluctuations in market performance, with significant buybacks conducted in 2024. The company repurchased 418,274 shares for $31.4 million during the twenty-six weeks ended August 3, 2024. As of August 3, 2024, the remaining authorization for share repurchase was $54.2 million.

Conclusion

Ollie's Bargain Outlet continues to demonstrate strong growth through its expansion strategy, efficient cost management, and robust financial performance metrics. The company is well-positioned to capitalize on market opportunities while maintaining a focus on cost control and operational efficiency.

How Ollie's Bargain Outlet Holdings, Inc. (OLLI) Makes Money

Revenue Generation

Ollie's Bargain Outlet Holdings, Inc. (OLLI) primarily generates revenue through the sale of a diverse range of merchandise at discount prices. For the twenty-six weeks ended August 3, 2024, net sales reached $1.087 billion, a significant increase from $973.7 million in the same period of the previous year, representing an 11.7% growth.

Comparable Store Sales

Comparable store sales increased by 4.5% during the twenty-six weeks ended August 3, 2024, compared to a 6.3% increase in the prior year. This growth was attributed to an increase in both average transaction size and the number of transactions.

Gross Profit and Margin

Gross profit for the twenty-six weeks ended August 3, 2024, was $428.4 million, up from $375.3 million year-over-year. The gross margin improved to 39.4% from 38.5%, primarily due to favorable supply chain costs and higher merchandise margins.

Operating Income

Operating income for the twenty-six weeks ended August 3, 2024, was reported at $117.3 million, compared to $91.1 million in the previous year. This increase reflects improved operational efficiency and sales growth.

Selling, General, and Administrative Expenses (SG&A)

SG&A expenses rose to $288.1 million for the twenty-six weeks ended August 3, 2024, from $264.9 million in the previous year, marking an 8.8% increase. However, SG&A as a percentage of net sales decreased to 26.5% from 27.2% due to fixed cost leverage.

Pre-Opening Expenses

Pre-opening expenses increased to $7.3 million during the twenty-six weeks ended August 3, 2024, from $6.2 million in the same period of 2023. This increase was attributed to the costs associated with the startup of the new distribution center and new store openings.

Interest Income

Interest income for the twenty-six weeks ended August 3, 2024, increased to $8.2 million, up from $6.1 million the previous year, largely due to favorable interest rates and higher average cash balances.

Net Income and Earnings Per Share

Net income for the twenty-six weeks ended August 3, 2024, was $95.3 million, compared to $73.2 million in the previous year, reflecting a 30.3% increase. Basic earnings per share were reported at $1.55, up from $1.18.

Store Growth and Expansion Strategy

Ollie's continued its expansion strategy by opening 13 new stores in the twenty-six weeks ended August 3, 2024, compared to 15 new stores in the previous year. As of August 3, 2024, the company operated 525 stores.