Ollie’s Bargain Outlet names new CEO and expands board

HARRISBURG, Pa. - Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: NASDAQ:OLLI) has announced the appointment of Eric van der Valk as the new President & Chief Executive Officer, effective Sunday. Alongside his CEO role, van der Valk has joined the company’s Board of Directors, expanding its size to ten members. Concurrently, John Swygert has transitioned to the position of Executive Chairman of the Board.

These leadership changes are part of the company’s succession plan, initiated in June 2024, aiming to uphold the growth trajectory of Ollie’s Bargain Outlet, which has achieved impressive revenue growth of 12.5% over the last twelve months. Van der Valk expressed his gratitude for the opportunity to lead and praised the company’s team for their dedication. He is committed to sustaining the company’s value proposition of delivering quality products at discount prices.

John Swygert, reflecting on his tenure, highlighted the company’s adherence to its business model and the accomplishments achieved. He is optimistic about the company’s future under van der Valk’s leadership, citing his unique background as instrumental for the company’s continued success.

Rich Zannino, the lead independent director on Ollie’s Board, praised the thorough succession planning and van der Valk’s contributions to the company’s performance and growth. Zannino also acknowledged Swygert’s impactful leadership over two decades, which has led to significant profitable growth in the retail sector.

Ollie’s Bargain Outlet, known for its closeout merchandise and excess inventory, operates 562 stores across 31 states. The company prides itself on offering branded products at bargain prices in various departments. With a healthy current ratio of 2.9 and moderate debt levels, InvestingPro analysis reveals 8 additional key insights about the company’s financial strength and growth potential, available in the comprehensive Pro Research Report. These leadership appointments are expected to further the company’s growth and deliver value to shareholders, according to the statements based on a press release.

In other recent news, Ollie’s Bargain Outlet has been the subject of significant analyst attention following the closure of Big Lots (NYSE:BIG) stores. RBC Capital Markets maintained an Outperform rating on Ollie’s shares, setting a steady price target of $130.00. The firm’s analysis suggests that the closure of approximately 993 Big Lots stores, about 422 of which are within 10 miles of an Ollie’s location, could present both challenges and opportunities for Ollie’s.

JPMorgan also maintained an Overweight rating on Ollie’s, highlighting the potential for fourth-quarter growth and long-term benefits from the market space vacated by Big Lots. Loop Capital and Citi also maintained positive ratings on Ollie’s, citing potential market share gains, increased vendor relevance, and adaptability, respectively.

Recent evaluations by Truist Securities and KeyBanc identified Ollie’s as a primary beneficiary of the Big Lots store closures, with potential to capture a significant portion of the market share. The company’s robust financial health, strong revenue growth, and solid operating performance are seen as supportive of its growth trajectory. Ollie’s management has reiterated a 10% annual growth rate as a baseline for new store openings, with the flexibility to potentially open up to 75 stores annually.

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