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On Wednesday, KeyBanc analysts reiterated an Overweight rating on Ollie's Bargain Outlet (NASDAQ:OLLI) stock, with a stable price target of $93.00. The statement follows the retailer's better-than-expected fourth-quarter results, driven by better-than-expected same-store sales (comps) and higher gross margins.
Comps increased 3.9%, beating expectations and consistent with key first-look data, suggesting it could outperform market expectations.
The company also revealed the results of a recent real estate study that suggests Olly's Bargain Outlet could expand its store count nationwide to up to 1,300 stores. This is a significant increase from the previous estimate of 1,050 stores, and more than double the 512 stores Ollies operated at the end of 2023.
Ollies has provided formal guidance for 2024, which is broadly consistent with commentary previously provided by the company. Still, this guidance is slightly below Wall Street expectations for both revenue and earnings per share (EPS). Our forward-looking statements are based on current market conditions and business strategies.
Analyst comments highlighted the strong fourth quarter results and the company's ability to meet and exceed certain financial metrics. The expansion potential indicated by the real estate research reflects the company's growth prospects and analysts' confidence in Olly's ability to significantly expand its store footprint.
Investors and market watchers will be keeping an eye on Ollie's Bargain Outlet's performance as it looks to capitalize on expansion opportunities and navigate its projected financial situation in 2024. The company's stock price performance and ability to achieve its goals will continue to be closely watched. Execute your strategic plan.
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