OLLIE'S BARGAIN OUTLET HOLDINGS, INC.

Red flags

• The business sources substantial merchandise on a closeout basis without long-term supplier contracts, creating uncertainty around recurring access, pricing, and product availability.
• Inventory purchases can be large and difficult to sell timely; undesirable merchandise may require significant markdowns, directly pressuring margins and cash returns.
• As of January 31, 2026, the company had only $86.5 million of revolver availability against a $100.0 million facility, with $13.3 million of outstanding letters of credit and $0.2 million of rent reserves.
• The company held operating cash balances above the FDIC insurance limit, exposing excess cash to bank-counterparty risk, although no related losses had occurred.
• The company spent $73.8 million on repurchases in 2025 while $258.8 million remained authorized; repurchases are discretionary and may be funded through the revolver.