TQI Capital on Substack published a bullish thesis on Ollie’s Bargain Outlet Holdings, Inc. OLLI’s stock was trading at $133.40 on September 5th, with trailing and forward P/E of 38.67 and 34.72 respectively.

Ollie’s delivered a strong second quarter with net sales up 18% to $680 million, comps rising 5%, and gross margin expanding to 39.9%. The company added 29 stores in Q2, surpassing prior full-year records, and raised guidance across sales, comps, and earnings.

With a strong balance sheet, Ollie’s is seizing growth opportunities in real estate and inventory while focusing on customer loyalty. The stock is less of a bargain now, but the long-term potential for 1,000+ stores is still promising. Strategic execution and financial strength position Ollie’s as a long-term compounder.

TQI Capital’s bullish view on Ollie’s emphasizes accelerated store growth and a loyalty-driven flywheel as key differentiators from other retail companies. Target Corporation was previously covered with a similar view on retail resilience, but Ollie’s growth and strategic execution make it stand out in the market. Target’s stock has depreciated slightly since coverage, but the thesis remains intact.

Read more at Yahoo Finance: Ollie’s Bargain Outlet Holdings, Inc. (OLLI): A Bull Case Theory