Mission Statement, Vision, & Core Values (2024) of Ollie's Bargain Outlet Holdings, Inc. (OLLI).

An Overview of Ollie's Bargain Outlet Holdings, Inc. (OLLI)

General Summary of Ollie's Bargain Outlet Holdings, Inc. (OLLI)

Ollie's Bargain Outlet Holdings, Inc. was founded in 1982 and operates a chain of retail stores that offer a wide variety of discounted merchandise, including closeout and surplus goods. The company primarily sells brand name products at significant markdowns, focusing on categories such as food, housewares, toys, and seasonal items. As of 2024, Ollie's has expanded its footprint significantly, operating 525 stores across the United States, showcasing a robust growth strategy.

In fiscal 2024, Ollie's reported net sales of $1.087 billion for the twenty-six weeks ended August 3, 2024, reflecting an increase from $973.7 million in the same period of the previous year. This growth is attributed to both new store openings and an increase in comparable store sales.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of fiscal 2024, Ollie's achieved net sales of $578.4 million, a 12.4% increase from $514.5 million in the second quarter of fiscal 2023. The growth was driven by a non-comparable store sales increase of $34.9 million and a comparable store sales increase of $29.0 million.

Net income for the second quarter of fiscal 2024 was $49.0 million, up from $42.2 million in the same quarter of fiscal 2023, marking a 16.1% increase. Adjusted EBITDA also rose to $74.5 million, compared to $64.0 million the previous year, reflecting a growth of 16.4%.

The twenty-six weeks ended August 3, 2024, saw gross profit increase to $428.4 million, with a gross margin of 39.4%, up from 38.5% in the prior year. Selling, general, and administrative expenses (SG&A) increased to $288.1 million, but as a percentage of net sales, SG&A decreased to 26.5% from 27.2%.

Introduction to Company as One of the Leading Companies in the Industry

Ollie's Bargain Outlet Holdings, Inc. stands out as a leader in the discount retail sector. The company’s unique business model, which focuses on offering significant discounts on a wide range of products, has positioned it favorably against competitors. The strategic expansion into new markets and the consistent growth in comparable store sales highlight its strong operational execution and customer appeal.

With a robust pipeline of new store openings planned for fiscal 2024, Ollie's aims to open approximately 50 new stores, further solidifying its market presence and enhancing its revenue potential. The company's ability to maintain profitability while expanding its footprint is a testament to its effective management and operational strategies.

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

Company's Mission Statement Overview

The mission statement of Ollie's Bargain Outlet Holdings, Inc. (OLLI) is a critical component that guides the company’s long-term objectives and operational strategies. In 2024, the mission statement emphasizes the commitment to providing customers with the best deals on a wide variety of merchandise. This focus on value is central to the company’s identity and plays a significant role in shaping its corporate culture and business practices.

Core Component 1: Delivering Value

At the heart of Ollie's mission is the commitment to delivering exceptional value to customers through low prices and high-quality products. In fiscal 2024, Ollie's reported a net sales increase to $1.087 billion, up from $973.7 million in the previous year, marking an increase of 11.7%. The company attributes this growth to effective pricing strategies and product selection that resonate with budget-conscious consumers.

Core Component 2: Customer Experience

Ollie's mission underscores the importance of enhancing the customer shopping experience. The company aims to create a welcoming environment that encourages repeat visits. In the second quarter of 2024, comparable store sales increased by 5.8%, driven by both an increase in the average transaction size and the number of transactions. This reflects the company's commitment to customer satisfaction and engagement.

Core Component 3: Community Engagement

Another vital element of Ollie's mission is its dedication to community involvement and support. The company actively participates in local initiatives and charitable activities, reinforcing its commitment to social responsibility. As of August 2024, Ollie's has opened 13 new stores in the year, which not only expands its market presence but also creates job opportunities within the communities it serves.

This table illustrates key financial metrics that highlight Ollie's performance in 2024, reinforcing its mission to deliver value, enhance customer experience, and engage with the community effectively. The increase in net sales and net income reflects the success of its strategic initiatives aimed at fulfilling its mission statement.

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

Vision Statement Overview

The vision statement of Ollie's Bargain Outlet Holdings, Inc. (OLLI) focuses on becoming the leading retailer of bargain merchandise while ensuring customer satisfaction and operational excellence. As of 2024, the company seeks to expand its footprint and enhance its service offerings.

Customer-Centric Approach

Ollie's vision emphasizes a strong commitment to customer satisfaction. The company aims to provide an exceptional shopping experience by offering quality products at unbeatable prices. This customer-centric approach is reflected in their net sales, which increased to $1.087 billion for the twenty-six weeks ended August 3, 2024, compared to $973.7 million for the same period in 2023, marking an increase of 11.7% .

Expansion and Growth Strategy

The company plans significant expansion in its store network. Ollie's opened 13 new stores in the first half of fiscal 2024, with a goal to open approximately 50 stores by the end of the fiscal year . This growth strategy is supported by the successful opening of their fourth distribution center in Princeton, Illinois, which enhances their supply chain capabilities.

Operational Excellence

Ollie's vision includes a commitment to operational excellence, which is evident in their financial metrics. The company's Adjusted EBITDA increased to $143.9 million for the twenty-six weeks ended August 3, 2024, compared to $113.4 million in the same period in 2023, reflecting a growth of 26.8% . This improvement is attributed to enhanced efficiency in their operations and disciplined expense control.

Community Engagement and Sustainability

Another vital component of Ollie's vision is its commitment to community engagement and sustainability. The company actively participates in local community initiatives and aims to reduce its environmental footprint through sustainable practices in operations. This includes optimizing supply chain processes to minimize waste and enhance efficiency.

Financial Health and Future Outlook

As of August 3, 2024, Ollie's maintained a robust financial position with $353.1 million in cash and cash equivalents . The company's liquidity is further supported by a $100 million revolving credit facility, of which $89 million is available for borrowing . This financial health positions Ollie's well for future growth and expansion initiatives.

Core Values of Ollie's Bargain Outlet Holdings, Inc. (OLLI)

Customer Commitment

The core value of customer commitment is paramount for Ollie's Bargain Outlet Holdings, Inc. (OLLI) as it emphasizes delivering quality service and value to customers.

In fiscal 2024, Ollie's reported net sales of $1.087 billion for the twenty-six weeks ended August 3, 2024, reflecting an increase of 11.7% compared to $973.7 million for the same period in the previous year. This growth was attributed to both an increase in comparable store sales and the opening of new locations.

The Ollie’s Army loyalty program is a significant initiative demonstrating this commitment. The program rewards loyal customers with discounts and special offers, contributing to the increase in average transaction size and customer retention.

Integrity

Integrity is another core value that drives Ollie's operations. The company maintains transparency in its financial reporting and business practices.

For instance, Ollie's reported net income of $95.3 million for the twenty-six weeks ended August 3, 2024, a 30.3% increase from $73.2 million in the prior year. This reflects not only operational efficiency but also a commitment to honest reporting and accountability.

The company also adheres to ethical sourcing practices, ensuring that the merchandise offered in its stores meets high standards of quality and safety.

Teamwork

Teamwork is emphasized within Ollie's culture, fostering collaboration among employees to achieve common goals.

As of August 3, 2024, Ollie's operated 525 stores, a significant increase from 482 stores at the same time the previous year, demonstrating the effectiveness of teamwork in driving growth. The company opened 13 new stores during the twenty-six weeks ended August 3, 2024, showcasing the collective effort of its workforce in executing expansion strategies.

Additionally, Ollie's invests in employee training programs to enhance skills and promote a collaborative environment.

Value Creation

Value creation for shareholders and customers alike is a fundamental aspect of Ollie's operations.

The company reported an adjusted EBITDA of $143.9 million for the twenty-six weeks ended August 3, 2024, compared to $113.4 million for the same period in the previous year, an increase of 26.8%. This growth indicates a strong focus on operational effectiveness and efficiency.

Ollie's commitment to offering quality products at bargain prices is evident in its merchandise mix, which allows for high margins and customer satisfaction.

Community Engagement

Community engagement is a core value that Ollie's actively promotes through various initiatives that support local communities.

The company has contributed to local charities and educational programs, with a focus on enhancing community welfare. In fiscal 2023, Ollie's provided over $1 million in donations and support to various local organizations.

Moreover, Ollie's emphasizes hiring locally for its new store openings, which not only supports the community but also enhances local employment opportunities.