Ollie's Bargain Outlet Growth Prospects Intact Despite Weak Q2 Trends, RBC Says

MT Newswires Live06-04 23:50

Ollie's Bargain Outlet's (OLLI) long-term growth prospects remain intact despite softer Q2 trends and weather-related sales pressures, RBC Capital Markets said in a report emailed Thursday.

The firm said Ollie's fiscal Q1 comparable sales growth of 1.7% was "in-line to slightly better" than buyside expectations and gross margin expanded 80 basis points to 41.9% on lower supply chain and tariff costs, while weather-related weakness in the South masked stronger demand trends in regions with more normal conditions.

While fiscal Q2 sales trends are "running below" management's guidance, the firm said much of the "actual risk" to 2026 earnings is already reflected in the stock. The firm currently forecasts adjusted earnings per share of $4.42 in 2026 and $5.07 in 2027, the report said.

RBC maintained an outperform rating on Ollie's Bargain Outlet, with an unchanged price target of $152.

Price: 76.01, Change: -3.74, Percent Change: -4.68

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