What Happened?
Shares of discount retail company Ollie’s Bargain Outlet (NASDAQ: OLLI) jumped 3.4% in the afternoon session after the company announced the grand opening of its 600th store and benefited from a broader market rally fueled by strong U.S. economic data.
The company marked a significant milestone by opening a new location in Belmont, New Hampshire, expanding its footprint to 34 states. This expansion is a positive signal of the company's growth strategy and its ability to increase its national presence.
Adding to the positive sentiment, the stock was lifted by a favorable macroeconomic backdrop. New economic reports showed an unexpected increase in U.S. retail sales and a drop in weekly unemployment claims, easing concerns about a potential recession. This news is particularly encouraging for consumer discretionary companies like Ollie's, as it suggests shoppers remain confident and willing to spend, which can drive higher foot traffic and sales.
Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
The shares closed the day at $131.93, up 3.6% from previous close.
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What Is The Market Telling Us
Ollie’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 13.1% on the news that the company delivered impressive third-quarter results, surpassing analysts' expectations for operating profit and exceeding Wall Street's gross margin estimates. Revenue was in line, and the company reconfirmed its full-year revenue guidance. These results highlight Ollie's progress as it continued to grow its market share by opening new stores. Overall, this was a strong quarter for the company.
Ollie's is up 21.8% since the beginning of the year, and at $131.89 per share, it is trading close to its 52-week high of $133.44 from June 2025. Investors who bought $1,000 worth of Ollie’s shares 5 years ago would now be looking at an investment worth $1,372.
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