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HARRISBURG, Pa. – Ollie’s Bargain Outlet Holdings (Ollie's) announced this week that its board of directors has unanimously approved a new share repurchase authorization for the repurchase of an additional $300 million of the company’s outstanding common stock. This new authorization is effective through March 31, 2029. The company may repurchase the shares in open market transactions, privately negotiated transactions, or a combination of the foregoing.
Share repurchase decisions are at the company’s discretion based on market conditions, business considerations and other factors. Since Ollie’s enacted its first share buyback in 2019, the company has bought back nearly $414 million, or 5.5 million shares, of its common stock.
“While accelerated growth is our primary focus in the short term, we remain committed to returning capital to our investors through share repurchases, while balancing our strategic growth opportunities and working capital needs. Our cash generation is strong, and we continue to grow our cash balances each year. With $429 million of cash and short-term investments and no borrowings under our revolving credit facility at the end of fiscal 2024, we have the ability to fund accelerated growth, return capital to shareholders, and pursue unique opportunities as they arise,” said Eric van der Valk, president and chief executive officer.
The chain is one of the largest retailers featuring closeout merchandise and excess inventory. The stores are said to offer real brands and real bargain prices. "We offer extreme value on brand name products in a variety of departments, including housewares, food, books and stationery, bed and bath, floor coverings, toys, health and beauty aids, and more," he said.
Last month the company announced the acquisition of 40 former Big Lots store leases from Gordon Brothers. The acquisition of the additional store leases is subject to final bankruptcy court approval and customary closing conditions. Including the 40 additional Big Lots locations, the company has acquired a total of 63 former Big Lots store leases to date.
"We are excited to announce the acquisition of an additional 40 former Big Lot store locations. Everything about these stores lines up well with our business and growth strategy. These locations are the right size, come with favorable lease terms, are located in existing and adjacent trade areas, and have long serviced value conscious consumers,” van der Valk said.
“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. 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,” he added.
The company ended the quarter with 559 stores in 31 states, an increase of 9.2% year-over-year.
