Ollie's Bargain Outlet Holdings Inc: 1Q Preview: we think OLLI is well-positioned to deliver consistent growth

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Ollie's Bargain Outlet Holdings Inc: 1Q Preview: we think OLLI is well-positioned to deliver consistent growth

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Ollie's Bargain Outlet Holdings Inc

1Q Preview: we think OLLI is well-

positioned to deliver consistent growth

Reiterate Rating: BUY | PO: 135.00 USD | Price: 93.26 USD

Fears driving multiple compression appear overblown 19 May 2026

We reiterate our Buy rating as we view OLLI as a beneficiary of today's choppy Equity

economic environment given its value proposition is resonating and driving trade down.

The multiple has rerated since 4Q earnings, and the stock is now trading at 16x P/E, Mary Sport

versus an average of 28x over the past year. We attribute the pullback to fears about the Research Analyst

BofAS

low-income consumer and concerns about lapping Big Lots bankruptcy tailwinds. We +1 646 743 0227

think fears are overblown given multiple drivers to support sales growth including access mary.sport@bofa.com

to better product, marketing improvements, and a strong real estate pipeline. OLLI Lorraine Hutchinson, CFA

Research Analyst

guided to F26 comp of 2% and GM of 40.5%, versus its typical algo of 1-2% comp and BofAS

40% GM. We view this as achievable as better product and marketing should support a +1 646 855 0951 lorraine.hutchinson@bofa.com

more consistent, L-MSD comp and healthy margin flow-through from here.

We think OLLI can offset higher freight with better buying

A key question heading into earnings is whether freight pressure will impact mgmt’s Stock Data

40.5% F26 GM target. We think OLLI can offset the bulk of margin pressure with better Price 93.26 USD

buying, lower tariff costs, and expense leverage. Because oil prices started rising in late Price Objective 135.00 USD