MW Discount retailer Ollie's adds Big Lots stores, as a luxury-goods seller retreats from malls

By Steve Gelsi

Moves reflect emphasis by consumers on value over luxury goods

Ollie's Bargain Outlet is buying 40 former Big Lots stores as it ups its real-estate-expansion efforts by snapping up bankrupt leases, while Signet Jewelers said it would reduce its mall presence by 10%.

The buildup by the discount retailer, along with the restructuring by a luxury-goods seller, reflects the increased uncertainty over the economy facing American consumers. Retailers have responded to a long period of inflation with a renewed emphasis on value over less-essential products, such as diamond rings.

Ollie's Bargain Outlet Holdings Inc. stock $(OLLI)$ rose 8.7%, while Signet Jewelers Ltd.'s stock $(SIG)$ was up 22%, after the company said it may beat analysts' profit projections for the coming year.

The company said it expects adjusted fiscal 2026 earnings of $7.31 a share to $9.10 a share, while analysts are projecting earnings of $9.00 a share.

Signet's stock has fallen 29% in the year to date, while Ollie's has fallen 4%, matching the S&P 500's SPX decline.

Ollie's adds amid 'unique opportunity'

Ollie's said it plans to open 75 new stores in 2025, up from 50 in 2024, as it accelerates new-store openings and shops for more store locations.

Ollie's ended 2024 with 559 stores in 31 states, up 9.2% from the year earlier.

Ollie's Chief Executive Eric van der Valk, President said he sees a "unique opportunity" for the company to buy more stores at prices that will help boost shareholder returns.

"With so many retailers closing stores or going bankrupt in the past year, there are a considerable number of abandoned customers, merchandise, real estate, and talent in the marketplace," he said.

Ollie's said in February that it planned to buy 40 more Big Lots stores out of bankruptcy. Including those, Ollie's now has 63 leases formerly held by Big Lots, which announced plans to close as many as 315 stores in September as part of a bankruptcy filing.

Ollie's fourth-quarter sales rose 2.8% to $667.1 million, below the FactSet consensus estimate of $675.4 million. The retailer's adjusted fourth-quarter earnings of $1.19 a share matched the analyst estimate.

"We were very pleased with our financial results and the underlying trends in our business," van der Valk said. "At a time when consumers need it most, we are delivering unprecedented value."

Ollie's said it expected fiscal 2025 adjusted earnings of $3.65 a share to $3.75 a share, while analysts have projected earnings of $3.78 a share.

Signet launches new online-focused strategy

For its part, Signet said it would reduce its presence in malls by 10% over the next three years, as it shifts customers to online sales as well as non-mall locations.

"Since (the) holiday (season), we increased our depth of assortment at key price points while also benefiting from improved bridal trends," Signet Jewelers Chief Executive J.K. Symancyk said in prepared remarks. "Our overall Q4 performance and lack of growth over the past several quarters informed our new strategy to grow our business."

The company is launching a "transformative strategy" called "Grow Brand Love," he said.

The company ended the quarter with 2,642 stores, down from 2,698 in the year-ago quarter. Signet closed 74 stores and opened 18 stores during the quarter. In the year-ago period, it closed 50 stores and opened 18.

Signet Jewelers reported adjusted fourth-quarter earnings of $6.62 a share, below the FactSet consensus estimate of $7.42 a share.

Signet Jewelers sales fell from $2.5 billion to $2.35 billion, missing the analyst revenue estimate of $2.42 billion.

-Steve Gelsi

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March 19, 2025 10:04 ET (14:04 GMT)

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