Ollie's Bargain Outlet Shares Rise After Board Approves Additional $500 Million Buyback

HARRISBURG, Pa. — Shares of Ollie's Bargain Outlet Holdings rose Tuesday after the company said its board unanimously approved an additional $500 million authorization to repurchase its common stock.

The new authorization brings the company's total available repurchase capacity to approximately $561 million. Ollie's has returned about $679 million to shareholders through buybacks since the program began in 2019. Shares traded near $91.20 in early session activity, up about 5.5 percent from the prior close, according to market data.

"This new authorization underscores our conviction in the substantial long-term growth opportunity ahead," President and Chief Executive Officer Eric van der Valk said in the company's announcement. "It also demonstrates our confidence in the durability of Ollie's business model, our ability to generate substantial cash flow over time, and in the strength of our financial position."

Van der Valk added that the company remains committed to its capital allocation priorities, including new stores, infrastructure, financial flexibility and returning excess capital through disciplined share repurchases. "We believe this authorization reflects our confidence in the future of our business with our focus on creating long-term shareholder value," he said.

The repurchase program has no expiration date. The company is not required to buy shares and may suspend, modify or end the program. Repurchases may be made in the open market or in privately negotiated transactions.

The buyback announcement followed a second-quarter report in early September in which net sales rose 9.1 percent to $741.3 million. The increase was driven by new store openings. Comparable-store sales declined 1.8 percent, which the company attributed to weather, consumer pressure and a promotional retail environment. Diluted earnings per share rose to $1.42 from $0.99. Gross margin expanded, helped in part by tariff refunds. The company opened 15 stores in the quarter and grew loyalty-program membership 12.7 percent.

Ollie's lowered its full-year net sales guidance to a range of $2.928 billion to $2.941 billion from a prior range of $2.980 billion to $3.000 billion. It also cut its comparable-store sales outlook to flat to up 0.5 percent from roughly 2 percent. It still plans to open 75 new stores for the year. The company has said it will invest about $15 million in lower prices, with most of that spending in the second half, to protect its low-price position.

The stock had been down roughly 30 percent over the prior 12 months before Tuesday's move. Next earnings are expected around Dec. 8. No further details on the timing or pace of the new $500 million authorization were released. The market reaction on Oct. 13 reflected the board's decision to expand the existing buyback capacity.