Ollie’s Bargain Outlet Is Opening Even More Stores in 2025

While many discount retailers continue to struggle, Ollie’s Bargain Outlet is expanding. The company is on target to open 75 new stores in fiscal 2025.

Using cash on hand, Ollie’s purchased 40 former Big Lots locations, which is right in line with the company’s growth plan for the year. The leases were bought under favorable terms, with below-market property rent payments in areas that serve the typical core customer profile of Ollie’s.

“With so many retailers closing stores or going bankrupt in the past year, there are a considerable number of abandoned customers, merchandise, real estate, and talent in the marketplace,” said CEO Eric van der Valk, per Chain Store Age. “We think there is a unique opportunity to take on some of these assets in a manner that strengthens our competitive positioning, broadens our footprint, and bolsters shareholder returns for years to come.”

With Big Lots in bankruptcy, Ollie’s still needs court approval to complete the lease purchases. Meanwhile, the closeout retailer will likely continue to search for deals on leases and new locations to target. At the end of fiscal 2024, the company had a total of 559 stores in 31 states, which is just over 9% more than it had in 2023.

Ollie’s Bargain Outlet 2024 Earnings and 2025 Outlook

In the fourth quarter of 2024, Ollie’s made $667.1 million in revenue, below analysts’ expectations of $674.5 million. Comparable sales, which measure the income of stores open at least a year, climbed 2.8%. Net income reached $68.6 million, a 10.4% decrease compared to Q4 2023.

For the entire year, Ollie’s net revenue topped $2.27 billion, up 8%. According to the company, new store openings and an uptick in comparable sales led the growth.

“We were very pleased with our financial results and the underlying trends in our business,” said Van der Valk in the earnings statement. “At a time when consumers need it most, we are delivering unprecedented value through an ever-changing assortment that combines quality, national brands, and pricing in a way that can only be found at Ollie’s.”

For fiscal 2025, Ollie’s expects net sales between $2.56 billion and $2.59 billion. Comparable sales should increase by 1% to 2%.