Harrisburg-based Ollie’s Bargain Outlet Holdings, Inc., one of Pennsylvania’s largest publicly traded retailers, announced its Board of Directors approve a new share repurchase authorization
The company said the unanimous decision repurchases $500 million in outstanding common stock. Including the company’s existing share repurchase authorization, the company now has approximately $561 million of aggregate share repurchase capacity.
“This new authorization underscores our conviction in the substantial long-term growth opportunity ahead. It also demonstrates our confidence in the durability of Ollie’s business model, our ability to generate substantial cash flow over time, and in the strength of our financial position,” Eric van der Valk, president and CEO, said. “We remain committed to our capital allocation priorities, including investing in new stores, strengthening the capabilities and infrastructure to support our growth, maintaining financial flexibility, and returning excess capital to shareholders through disciplined share repurchases. We believe this authorization reflects our confidence in the future of our business with our focus on creating long-term shareholder value.”
That the company’s move signals board confidence in the discount retailer’s financial position. Since initiating a share repurchase program in 2019, the company has returned an estimated $679 million to shareholders, while continuing to invest in new stores, supply chain capacity, and strategic growth initiatives.
Officials said the new authorization has no expiration date and provides the company with flexibility to execute repurchases over time through open market transactions, privately negotiated transactions, Rule 10b5-1 trading plans or other means, at the company’s discretion, while not obligating the company to repurchase any common stock. The company is free to suspend, modify or discontinue the program at any time, officials said.