From Nasdaq: 2025-06-09 00:45:00

Ollie’s Bargain Outlet Holdings’ stock is trading at $114 per share, but its financial fundamentals don’t justify the high valuation. Despite some growth, weak profitability and shaky downturn performance suggest it may not be a bargain for investors. Consider the Trefis High Quality portfolio for lower volatility and better returns.

In the latest quarter, Ollie’s delivered mixed results with sales up 13% year-over-year but falling short of revenue expectations. Profitability beat estimates, but operating margins declined. The company reaffirmed full-year guidance. With 584 locations and 2.6% same-store sales growth, questions remain about demand consistency.

Ollie’s valuation raises concerns with high price-to-sales, price-to-free cash flow, and price-to-earnings ratios. While revenue growth has been solid, weak profitability metrics place Ollie’s among the weakest performers. The stock has shown poor resilience during economic downturns, with significant drops compared to the S&P 500.

While Ollie’s balance sheet is strong, its weak profitability, limited downturn protection, and high valuation make it less appealing. Consider the Trefis Reinforced Value Portfolio for better returns. The RV Portfolio has outperformed its benchmark, providing a responsive way to navigate market conditions and limit losses.



Read more at Nasdaq: Ollie’s Bargain Outlet Stock Isn’t the Deal It Appears To Be