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Ollie's Bargain (OLLI) Rides on Business Model, Customer Reach
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Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) continues to excel due to its unique business model of "buying cheap and selling cheap." This approach, combined with cost-containment efforts, a focus on store productivity and the expansion of its customer loyalty program, Ollie's Army, has solidified its position in the market. The company’s success can be attributed to its ability to offer compelling deals that resonate well with consumers. No wonder, Ollie's Bargain’s favorable vendor relationships are also a key to growth.
Business Model Resonates Well With Customers
Ollie's Bargain’s focus on value-driven merchandise assortments positioned it well to capitalize on opportunities in the marketplace and effectively meet consumer demand. Ollie's Army continued to be a major sales driver, with membership increasing continuously. As of the conclusion of fiscal 2023, Ollie's Bargain boasts an active Ollie's Army membership of 14 million, contributing to more than 80% of total sales.
Ollie's Bargain’s commitment to providing brand-name and closeout merchandise at attractive price points has resulted in favorable responses from customers. The Zacks Rank #3 (Hold) company remains steadfast in its commitment to delivering superior deals, enhancing operating margins and expanding its store network. Ollie's Bargain stands to benefit from a favorable closeout environment and increased trade-down activity, aligning with its growth objectives.
Management has set ambitious targets for fiscal 2024, with net sales projected between $2,248 million and $2,273 million, which suggests an increase from $2,102.7 million reported in fiscal 2023. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 1-2%.
Image Source: Zacks Investment Research
Store Expansion Strategy
In terms of store growth opportunities, Ollie's Bargain plans to have 1,300 stores in the long run. Ollie's Bargain increased its store base at a CAGR of 10.4% from 345 stores in fiscal 2019 to 512 stores in fiscal 2023.
In the preceding two fiscal years, Ollie's Bargain opened 45 and 40 stores, respectively. Looking at fiscal 2024, the company plans to open 50 new stores in fiscal 2024.
Importantly, Ollie's Bargain's new store real estate model prioritizes flexibility and focuses on the store size between 25,000 and 35,000 square feet. The company targets new store sales of about $4 million in the first full year of operations.
Wrapping Up
Ollie's Bargain has thrived by offering unbeatable deals to its customers through its unique business approach. By focusing on affordability and value, alongside efficient cost management and a robust loyalty program like Ollie's Army, the company has firmly established itself in the market. With a keen eye on customer needs and strategic partnerships with vendors, Ollie's Bargain is well-poised to continue its success story, meeting consumer demands and seizing opportunities in the ever-evolving retail landscape.
Based in Harrisburg, PA, the company has defied industry trends, with its stock rallying by an impressive 18.3% in the past year against the industry's 21% decline.
Stocks Hogging in the Limelight
Here, we have highlighted better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Target Corporation (TGT - Free Report) and Tractor Supply Company (TSCO - Free Report) .
Sprouts Farmers, a renowned grocery retailer, holds a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 9.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of around 8.2% and 8.5%, respectively, from the year-ago reported numbers.
Target, a general merchandise retailer in the United States, currently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 27.1%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings calls for growth of around 5% from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.3%, respectively, from the year-ago reported numbers.
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Ollie's Bargain (OLLI) Rides on Business Model, Customer Reach
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) continues to excel due to its unique business model of "buying cheap and selling cheap." This approach, combined with cost-containment efforts, a focus on store productivity and the expansion of its customer loyalty program, Ollie's Army, has solidified its position in the market. The company’s success can be attributed to its ability to offer compelling deals that resonate well with consumers. No wonder, Ollie's Bargain’s favorable vendor relationships are also a key to growth.
Business Model Resonates Well With Customers
Ollie's Bargain’s focus on value-driven merchandise assortments positioned it well to capitalize on opportunities in the marketplace and effectively meet consumer demand. Ollie's Army continued to be a major sales driver, with membership increasing continuously. As of the conclusion of fiscal 2023, Ollie's Bargain boasts an active Ollie's Army membership of 14 million, contributing to more than 80% of total sales.
Ollie's Bargain’s commitment to providing brand-name and closeout merchandise at attractive price points has resulted in favorable responses from customers. The Zacks Rank #3 (Hold) company remains steadfast in its commitment to delivering superior deals, enhancing operating margins and expanding its store network. Ollie's Bargain stands to benefit from a favorable closeout environment and increased trade-down activity, aligning with its growth objectives.
Management has set ambitious targets for fiscal 2024, with net sales projected between $2,248 million and $2,273 million, which suggests an increase from $2,102.7 million reported in fiscal 2023. Ollie’s Bargain now anticipates comparable store sales to rise in the band of 1-2%.
Image Source: Zacks Investment Research
Store Expansion Strategy
In terms of store growth opportunities, Ollie's Bargain plans to have 1,300 stores in the long run. Ollie's Bargain increased its store base at a CAGR of 10.4% from 345 stores in fiscal 2019 to 512 stores in fiscal 2023.
In the preceding two fiscal years, Ollie's Bargain opened 45 and 40 stores, respectively. Looking at fiscal 2024, the company plans to open 50 new stores in fiscal 2024.
Importantly, Ollie's Bargain's new store real estate model prioritizes flexibility and focuses on the store size between 25,000 and 35,000 square feet. The company targets new store sales of about $4 million in the first full year of operations.
Wrapping Up
Ollie's Bargain has thrived by offering unbeatable deals to its customers through its unique business approach. By focusing on affordability and value, alongside efficient cost management and a robust loyalty program like Ollie's Army, the company has firmly established itself in the market. With a keen eye on customer needs and strategic partnerships with vendors, Ollie's Bargain is well-poised to continue its success story, meeting consumer demands and seizing opportunities in the ever-evolving retail landscape.
Based in Harrisburg, PA, the company has defied industry trends, with its stock rallying by an impressive 18.3% in the past year against the industry's 21% decline.
Stocks Hogging in the Limelight
Here, we have highlighted better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Target Corporation (TGT - Free Report) and Tractor Supply Company (TSCO - Free Report) .
Sprouts Farmers, a renowned grocery retailer, holds a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 9.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of around 8.2% and 8.5%, respectively, from the year-ago reported numbers.
Target, a general merchandise retailer in the United States, currently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 27.1%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings calls for growth of around 5% from the year-ago reported numbers.
Tractor Supply, which operates as a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. Tractor Supply has a trailing four-quarter earnings surprise of 2.7%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and earnings suggests growth of 3% and 2.3%, respectively, from the year-ago reported numbers.