Citi reiterates buy rating on Ollie’s Bargain Outlet stock after Q1 results

Published 03/06/2025, 14:42
Citi reiterates buy rating on Ollie’s Bargain Outlet stock after Q1 results

On Tuesday, Citi analysts reiterated their Buy rating and maintained a $133.00 price target for Ollie’s Bargain Outlet (NASDAQ: OLLI) stock, currently trading at $110.01. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $105 to $137. The decision follows the company’s first-quarter performance, which aligned with market expectations.

Ollie’s reported a 2.6% increase in same-store sales, surpassing the Street’s forecast of 1.7% and falling within the expected range of 2.5-3.0%. The growth was attributed to an increase in transactions, contributing to the company’s impressive 8.04% revenue growth over the last twelve months. Earnings per share also exceeded expectations by approximately 4 cents, aided by a gross margin of 40.25% and a slightly lower tax rate, although higher operating expenses were noted. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 3.27, indicating robust liquidity management.

Management raised its full-year 2025 same-store sales guidance, reflecting confidence following the first-quarter results. However, the earnings per share guidance remained unchanged, with analysts projecting $3.73 per share for fiscal 2026. Analysts are looking forward to further insights during the upcoming call, particularly regarding second-quarter same-store sales outlook and the buying environment in the second half of the year amidst tariff concerns. For deeper insights into Ollie’s financial outlook and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

The company also plans to provide details on first-quarter selling, general, and administrative expenses related to medical and casualty claims, as well as explain why the earnings guidance was not adjusted despite the first-quarter performance.

Ollie’s Bargain Outlet’s solid first-quarter results suggest a stable performance, although some investors might have anticipated a greater upside in same-store sales.

In other recent news, Ollie’s Bargain Outlet has reported strong first-quarter results, with earnings and sales figures exceeding expectations. The company achieved an adjusted earnings per share (EPS) of $0.75, surpassing forecasts from Truist Securities, Goldman Sachs, and RBC Capital. Ollie’s net sales rose by 13.4% year-over-year, reaching $576.8 million, outperforming estimates from multiple analyst firms. The company’s comparable store sales increased by 2.6%, exceeding projections from RBC Capital and consensus forecasts.

In addition to these robust earnings results, Ollie’s management has updated its full-year guidance, now projecting sales between $2.58 billion and $2.60 billion, with comparable store sales growth expected between 1.4% and 2.2%. Analyst firms such as Truist Securities and Goldman Sachs have maintained their Buy ratings, citing Ollie’s strong consumer appeal and growth potential. RBC Capital also reiterated an Outperform rating, noting the company’s potential market share gains from Big Lots (NYSE:BIG) closures.

Meanwhile, UBS maintained a Neutral rating, highlighting the resilience of Ollie’s closeout model amid market volatility. UBS analysts are monitoring the company’s performance in light of its accelerated store opening plans and the evolving retail landscape. These developments reflect Ollie’s ability to navigate competitive pressures and changing consumer preferences effectively.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.