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Ollie's Bargain 1300 Store Goal: How Realistic Is the Long-Term Path?
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Key Takeaways
OLLI targets 1,300 stores in the long term, up from 645 stores in 34 states at the end of fiscal 2025.
OLLI opened a record 86 stores in fiscal 2025 via soft openings; plans 75 more in fiscal 2026.
OLLI cites consolidation and real estate openings boosting deal flow; long-term unit growth may run 10%.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) is positioning its long-term growth story around an ambitious target of more than 1,300 stores, a goal that implies roughly doubling its current footprint. As of the fiscal 2025 end, the company operated 645 stores across 34 states, highlighting that it is only about halfway toward that objective.
This target hinges on sustained expansion momentum. Ollie's Bargain opened a record 86 stores in fiscal 2025, a significant jump from its previous high of 50 stores, reflecting a step-change in execution capabilities. This acceleration was supported by a shift to a soft opening strategy, enabling earlier launches and smoother scaling. OLLI plans to open 75 stores in fiscal 2026, still robust but slightly below the prior year’s peak.
Another key factor supporting the long-term path is the external environment. Management highlighted strong real estate availability and ongoing retail consolidation, which is creating access to attractive locations and deal flow. These dynamics appear central to enabling geographic expansion into new states while deepening presence in existing markets.
Management also indicated that longer-term unit growth is likely to settle around 10% annually. This implies that while the 1,300-store ambition is structurally supported, its realization will likely depend on disciplined, multi-year expansion rather than rapid acceleration. By maintaining a debt-free balance sheet and strong cash generation, the company appears well-positioned to fund this ambitious expansion internally.
What the Latest Metrics Say About Ollie's Bargain
Ollie's Bargain, which operates in the closeout retail and discount merchandise space and competes with companies such as Dollar General Corporation (DG - Free Report) and Dollar Tree, Inc. (DLTR - Free Report) , has seen its shares tumble 16% over the past year compared with the industry’s decline of 13.2%. Shares of Dollar General and Dollar Tree have risen 30.6% and 29.5%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, OLLI's forward 12-month price-to-sales ratio stands at 1.78, lower than the industry’s ratio of 2.20. However, Ollie's Bargain is trading at a premium to Dollar General (with a forward 12-month P/S ratio of 0.59) and Dollar Tree (0.98).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OLLI's current financial-year sales and earnings per share implies year-over-year growth of 13.4% and 16.1%, respectively. For the next fiscal year, the consensus estimate indicates a 11.5% rise in sales and 13.5% growth in earnings.
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Ollie's Bargain 1300 Store Goal: How Realistic Is the Long-Term Path?
Key Takeaways
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) is positioning its long-term growth story around an ambitious target of more than 1,300 stores, a goal that implies roughly doubling its current footprint. As of the fiscal 2025 end, the company operated 645 stores across 34 states, highlighting that it is only about halfway toward that objective.
This target hinges on sustained expansion momentum. Ollie's Bargain opened a record 86 stores in fiscal 2025, a significant jump from its previous high of 50 stores, reflecting a step-change in execution capabilities. This acceleration was supported by a shift to a soft opening strategy, enabling earlier launches and smoother scaling. OLLI plans to open 75 stores in fiscal 2026, still robust but slightly below the prior year’s peak.
Another key factor supporting the long-term path is the external environment. Management highlighted strong real estate availability and ongoing retail consolidation, which is creating access to attractive locations and deal flow. These dynamics appear central to enabling geographic expansion into new states while deepening presence in existing markets.
Management also indicated that longer-term unit growth is likely to settle around 10% annually. This implies that while the 1,300-store ambition is structurally supported, its realization will likely depend on disciplined, multi-year expansion rather than rapid acceleration. By maintaining a debt-free balance sheet and strong cash generation, the company appears well-positioned to fund this ambitious expansion internally.
What the Latest Metrics Say About Ollie's Bargain
Ollie's Bargain, which operates in the closeout retail and discount merchandise space and competes with companies such as Dollar General Corporation (DG - Free Report) and Dollar Tree, Inc. (DLTR - Free Report) , has seen its shares tumble 16% over the past year compared with the industry’s decline of 13.2%. Shares of Dollar General and Dollar Tree have risen 30.6% and 29.5%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, OLLI's forward 12-month price-to-sales ratio stands at 1.78, lower than the industry’s ratio of 2.20. However, Ollie's Bargain is trading at a premium to Dollar General (with a forward 12-month P/S ratio of 0.59) and Dollar Tree (0.98).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OLLI's current financial-year sales and earnings per share implies year-over-year growth of 13.4% and 16.1%, respectively. For the next fiscal year, the consensus estimate indicates a 11.5% rise in sales and 13.5% growth in earnings.
Image Source: Zacks Investment Research
Ollie's Bargain currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.