Shares of Ollie's Bargain Outlet Holdings Inc (NASDAQ: OLLI) surged 8.96% in pre-market trading on Wednesday following the company's release of strong fourth-quarter results, announcement of accelerated store expansion plans, and a new share repurchase authorization.

For the fourth quarter of fiscal 2024, Ollie's reported net sales of $667.1 million, up 2.8% year-over-year, with comparable store sales increasing 2.8%. The company's adjusted earnings per share came in at $1.19, meeting analyst expectations. Despite a slight decrease from $1.23 per share in the same period last year, investors were impressed by Ollie's resilience and growth strategy.

The discount retailer announced plans to accelerate its store openings, targeting 75 new locations in fiscal 2025, up from 50 in fiscal 2024. This aggressive expansion comes as Ollie's sees opportunities to capitalize on other retailers closing stores or going bankrupt, allowing them to acquire prime real estate at favorable terms. The company's recent acquisition of 40 former Big Lots store locations underscores this strategy.

Adding to investor enthusiasm, Ollie's Board of Directors approved a new $300 million share repurchase authorization, effective through March 31, 2029. This move signals confidence in the company's long-term value and commitment to returning capital to shareholders. Since enacting its first share buyback in 2019, Ollie's has repurchased nearly $414 million worth of its common stock.

Looking ahead, Ollie's provided a robust outlook for fiscal 2025, projecting net sales between $2.564 billion and $2.586 billion, with adjusted earnings per share ranging from $3.65 to $3.75. The company's strong financial position, with $429 million in cash and short-term investments and no borrowings under its revolving credit facility, further supports its growth initiatives and capital return programs.

As consumers continue to seek value in an uncertain economic environment, Ollie's unique business model of offering brand-name products at discounted prices appears well-positioned for continued success. The market's positive reaction reflects investor confidence in the company's ability to execute its growth strategy and deliver shareholder value.