Ollie's Bargain Outlet Holdings, Inc. (OLLI) Bundle
Understanding Ollie's Bargain Outlet Holdings, Inc. (OLLI) Revenue Streams
Revenue Analysis
The company reported annual revenue of $2.57 billion for the fiscal year ending February 3, 2024.
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $2.57 billion | -4.2% |
| 2023 | $2.68 billion | -0.7% |
| 2022 | $2.70 billion | +5.3% |
Revenue breakdown by product categories:
- Home Goods: 38% of total revenue
- Closeout Merchandise: 32% of total revenue
- Housewares: 15% of total revenue
- Other Categories: 15% of total revenue
Geographic revenue distribution:
- Eastern United States: 72% of total revenue
- Central United States: 18% of total revenue
- Southern United States: 10% of total revenue
Store count impacting revenue: 419 retail locations as of February 2024.
| Revenue Metric | Value |
|---|---|
| Same-Store Sales Growth | -5.1% |
| Gross Margin | 35.6% |
| Operating Income | $194.3 million |
A Deep Dive into Ollie's Bargain Outlet Holdings, Inc. (OLLI) Profitability
Profitability Metrics Analysis
Financial performance for the fiscal year 2023 reveals key profitability insights:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 39.4% |
| Operating Profit Margin | 8.2% |
| Net Profit Margin | 5.7% |
Key profitability characteristics include:
- Total Revenue: $1.96 billion
- Net Income: $111.6 million
- Operational Expenses: $687.3 million
Comparative industry profitability metrics:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 39.4% | 36.8% |
| Operating Margin | 8.2% | 7.5% |
Operational efficiency indicators:
- Cost of Goods Sold: $1.19 billion
- Inventory Turnover Ratio: 4.3x
- Operating Expense Ratio: 35.1%
Debt vs. Equity: How Ollie's Bargain Outlet Holdings, Inc. (OLLI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $632.4 million | 68.3% |
| Total Short-Term Debt | $93.7 million | 10.1% |
| Total Debt | $726.1 million | 78.4% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.42
- Industry Average Debt-to-Equity Ratio: 1.35
- Credit Rating: BBB-
Financing Composition
| Financing Type | Amount | Percentage |
|---|---|---|
| Equity Financing | $200.5 million | 21.6% |
| Debt Financing | $726.1 million | 78.4% |
Recent Debt Activity
- Latest Bond Issuance: $250 million
- Interest Rate on New Debt: 5.75%
- Debt Maturity Profile: 5-7 years
Assessing Ollie's Bargain Outlet Holdings, Inc. (OLLI) Liquidity
Liquidity and Solvency Analysis
Financial analysis reveals critical liquidity metrics for the company's current financial position:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.38 |
| Quick Ratio | 0.36 | 0.32 |
| Working Capital | $246.7 million | $221.3 million |
Cash flow statement highlights include:
- Operating Cash Flow: $312.5 million
- Investing Cash Flow: -$87.6 million
- Financing Cash Flow: -$154.3 million
Key liquidity indicators demonstrate:
- Cash and Cash Equivalents: $178.4 million
- Short-Term Investments: $42.6 million
- Total Liquid Assets: $221 million
| Solvency Metric | 2023 Value |
|---|---|
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 6.2 |
| Total Debt | $487.9 million |
Is Ollie's Bargain Outlet Holdings, Inc. (OLLI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 11.42 |
| Price-to-Book (P/B) Ratio | 2.15 |
| Enterprise Value/EBITDA | 8.67 |
| Current Stock Price | $46.23 |
Stock price performance analysis reveals:
- 52-week low: $37.84
- 52-week high: $57.36
- Year-to-date price change: -12.5%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 6 | 40% |
| Hold | 8 | 53.3% |
| Sell | 1 | 6.7% |
Dividend characteristics:
- Current dividend yield: 0%
- Dividend payout ratio: N/A
Key valuation insights:
- Forward P/E ratio: 10.89
- Price/Sales ratio: 1.42
- Return on Equity (ROE): 14.3%
Key Risks Facing Ollie's Bargain Outlet Holdings, Inc. (OLLI)
Risk Factors for Ollie's Bargain Outlet Holdings, Inc.
The company faces several critical risk factors that could impact its financial performance and strategic positioning:
Competitive Landscape Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Discount Retail Competition | Market share erosion | High |
| Online Retail Expansion | Reduced physical store traffic | Medium |
Operational Risks
- Supply chain disruptions affecting inventory procurement
- Potential increases in merchandise acquisition costs
- Warehouse and distribution center operational challenges
Financial Risk Indicators
Key financial risk metrics as of recent quarterly reports:
| Metric | Value |
|---|---|
| Current Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 3.2x |
| Working Capital | $127.4 million |
Market Condition Risks
- Consumer spending volatility
- Potential economic recession impacts
- Inflationary pressures on consumer discretionary spending
Regulatory Compliance Risks
Potential regulatory challenges include:
- Labor law compliance
- Product safety regulations
- Environmental reporting requirements
Strategic Mitigation Approaches
| Risk Area | Mitigation Strategy |
|---|---|
| Inventory Management | Diversified sourcing strategies |
| Digital Transformation | Enhanced e-commerce capabilities |
| Cost Control | Operational efficiency initiatives |
Future Growth Prospects for Ollie's Bargain Outlet Holdings, Inc. (OLLI)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete financial and strategic metrics:
- Store Expansion: Planned to increase store count from 429 locations to 475-500 stores by end of 2024
- Annual New Store Opening Target: 40-50 new locations per year
- Projected Revenue Growth: 6-8% annual increase
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Total Store Count | 429 | 475-500 |
| Annual Revenue | $1.98 billion | $2.10-2.15 billion |
| Net Income | $132.6 million | $140-150 million |
Strategic growth initiatives include:
- Expanding private label merchandise offerings
- Enhanced digital commerce capabilities
- Continued focus on opportunistic inventory acquisition
Key competitive advantages supporting growth:
- Unique merchandise sourcing model
- Low-cost operational structure
- Strong relationships with 1,000+ suppliers
| Growth Investment Area | 2024 Allocated Budget |
|---|---|
| Store Expansion | $45-50 million |
| Technology Infrastructure | $12-15 million |
| Inventory Procurement | $75-80 million |
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