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Ollie's secures 11 former 99 Cents Only Stores

Published 2024-05-24, 12:46 p/m
© Reuters.

HARRISBURG, Pa. - Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), a prominent discount retail chain, has successfully acquired 11 store locations previously owned by 99 Cents Only Stores. The acquisition, valued at $14.6 million, was finalized after a bankruptcy court ruling on May 23, 2024, which approved Ollie’s as the winning bidder in a bankruptcy auction.

The stores, situated across Texas, include three owned properties and eight leases with favorable terms. Ollie’s anticipates that the transition will be completed in early June. This strategic move is part of the company's expansion plan, aligning with its growth trajectory in a state known for its increasing population and market potential.

President and CEO John Swygert expressed enthusiasm about the acquisition, emphasizing the stores’ ideal location and potential for serving value-oriented customers. Swygert also noted the company's goal to open 50 new stores, adjusting for two planned closures, within the fiscal year of 2024.

Ollie’s, which prides itself on offering discounted brand-name merchandise, currently operates 516 stores in 30 states. The company's focus remains on a swift operational transition for the newly acquired stores to mitigate occupancy costs that will accrue upon closing.

The information in this article is based on a press release statement from Ollie’s Bargain Outlet Holdings, Inc.

InvestingPro Insights

Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) has shown a strong financial performance in the last twelve months as of Q4 2024. With a market capitalization of $4.61 billion, the company is trading at a P/E ratio of 25.4, which is considered low relative to its near-term earnings growth. This aligns with the company's strategic expansion and could indicate a favorable outlook for investors considering the stock's potential value against future earnings.

The company's revenue growth is also notable, with a 15.09% increase over the last twelve months, highlighting the effectiveness of its business model and expansion strategy. This is further supported by an 18.04% quarterly revenue growth, showcasing the company's ability to scale successfully. Ollie’s has managed to maintain a healthy gross profit margin of 39.59%, which is reflective of its ability to control costs and optimize its discount retail operations.

InvestingPro Tips for Ollie’s indicate that the company operates with a moderate level of debt and has liquid assets that exceed short-term obligations, suggesting a strong balance sheet. This financial stability is crucial for the company as it continues to grow and acquire new store locations. Additionally, analysts predict that Ollie’s will remain profitable this year, which is consistent with its track record of profitability over the last twelve months.

For investors looking for more in-depth analysis and additional InvestingPro Tips, visit There are currently 6 additional tips available that can provide further insights into Ollie's financial health and growth prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable investment data and expert analysis.

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

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