OLLI

Ollie's Bargain Outlet is a closeout/extreme-value retailer with a structurally advantaged model: it buys excess and overstock merchandise opportunistically and sells it at deep discounts, which both drives high gross margins and positions it as a beneficiary of consumer trade-down. The growth is excellent and accelerating — FY2026 revenue rose 16.6% to $2.65B and net income grew 20.4% to $241M (EPS $3.89), extending a consistent multi-year climb ($1.75B revenue/$157M income in FY2022 to $2.65B/$241M in FY2026). Gross margin is a healthy 40.5%, operating margin 11.2%, and ROE a solid 12.7%.

The quality of the model shows in the balance sheet and cash flow. Liabilities/equity is a conservative 0.57x, the company holds $260M cash (up 26.6%), and operating cash flow grew 30.4% to $297M, comfortably above $102M of capex (which itself fell 15.5%). Management returns surplus cash via buybacks ($73.8M, up 39.3%, with the share count down 0.5%) while reinvesting in new-store growth, the company's primary engine. Retained earnings grew 17.6% to $1.61B — disciplined, self-funded expansion.