Ollie's gains after adding to its buyback firepower

Ollie's Bargain Outlet Holdings (OLLI) pushed higher in early trading on Tuesday after the retailer announced that its board has unanimously approved a new share repurchase authorization for an additional $500M of stock. Including the existing share repurchase authorization, Ollie's (OLLI) now has approximately $561M of buyback firepower.

"This new authorization underscores our conviction in the substantial long-term growth opportunity ahead. It also demonstrates our confidence in the durability of Ollie’s business model, our ability to generate substantial cash flow over time, and the strength of our financial position," highlighted CEO Eric van der Valk. "We remain committed to our capital allocation priorities, including investing in new stores, strengthening the capabilities and infrastructure to support our growth, maintaining financial flexibility, and returning excess capital to shareholders through disciplined share repurchases," he added.

Ollie's (OLLI) has returned approximately $679M to shareholders through share repurchases since 2019, while continuing to invest in new stores, supply chain capacity, and its strategic growth initiatives.

Shares of Ollie's (OLLI) broke 3.0% higher in premarket trading on Tuesday. The stock is down more than 20% on a year-to-date basis as weak same-store sales have undermined growth expectations. Management has noted pressure on consumers, unfavorable weather, and heavier retail promotions as factors this year.

Recommended For You

Create Your Free Account to Keep Reading

Get the confidence to navigate an uncertain market with free breaking news and stock alerts.