Ollie’s Bargain Outlet (NASDAQ: OLLI) experienced a game-changing event with Big Lots' bankruptcy. The company is rushing to fill the void, having already acquired more than 60 location leases and planning to accelerate its store openings. The new guidance includes a 50% increase in expected 2025 store openings to 75, a 13% increase that amplifies the long-term growth outlook for this off-price retailer.
At the end of fiscal 2024, Ollie’s operated 559 stores in 31 states and can easily reach its goal of doubling in size over the next few years as it expands into new territories and deepens penetration of the existing ones. The takeaway is that a once-regional operator is on track for a nationwide expansion that will elevate it into the ranks of leading retailers, including Walmart (NYSE: WMT) and TJX Companies (NYSE: TJX), and likely outgrow its forecasts.
