Ollie’s Bargain Outlet Announces New $300 Million Share Repurchase Authorization
Harrisburg, PA, March 19, 2025 – Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), a leading multichannel retailer of great values on brand-name merchandise, recently announced that its Board of Directors has unanimously approved a new share repurchase authorization. This authorization enables the Company to repurchase up to an additional $300 million of its outstanding common stock.
Background
Since initiating its first share buyback program in 2019, Ollie’s Bargain Outlet has repurchased approximately $414 million worth of its common stock, equating to around 5.5 million shares. This new authorization, effective through March 31, 2029, represents a significant commitment to returning value to its shareholders.
Impact on Shareholders
The new share repurchase authorization indicates that Ollie’s management believes the stock is undervalued. This belief is based on the Company’s strong financial position, which includes a cash balance of over $500 million, no long-term debt, and consistent revenue growth. By buying back shares, Ollie’s is reducing the number of outstanding shares, thereby increasing the earnings per share (EPS) for the remaining shareholders. This, in turn, could lead to an increase in the stock price due to the improved EPS.
Impact on the Wider Market
The share repurchase authorization could have a positive impact on the wider market as well. A strong earnings report and a solid balance sheet can signal to the market that Ollie’s is in a good financial position. This, in turn, could lead to increased investor confidence in the retail sector and potentially drive up the prices of other retail stocks. Additionally, a well-executed share buyback program can attract institutional investors, who often look for companies with a solid track record of returning value to shareholders.
Conclusion
Ollie’s Bargain Outlet’s new $300 million share repurchase authorization is a clear indication of the Company’s confidence in its financial position and its belief that its stock is undervalued. This program could lead to increased earnings per share for existing shareholders and potentially drive up the stock price. Furthermore, it could have a positive impact on the wider market by boosting investor confidence in the retail sector.
- Ollie’s Bargain Outlet has announced a new share repurchase authorization for up to $300 million of its common stock.
- Since initiating its first share buyback program in 2019, the Company has repurchased approximately $414 million worth of its stock.
- The new authorization, effective through March 31, 2029, represents a significant commitment to returning value to shareholders.
- The share buyback could lead to increased earnings per share for existing shareholders and potentially drive up the stock price.
- It could also have a positive impact on the wider market by boosting investor confidence in the retail sector.
