Ollie's Bargain Outlet Holdings Inc. (NASDAQ: OLLI) saw its stock surge 5.22% in pre-market trading on Wednesday following the release of its fourth-quarter and full-year fiscal 2024 financial results. The discount retailer reported solid performance and announced ambitious expansion plans, exciting investors despite slightly missing some analyst estimates.

For the fourth quarter, Ollie's reported adjusted earnings per share of $1.19, meeting analyst expectations. While this represents a slight decrease from $1.23 per share in the same period last year, the company's revenue grew 2.79% year-over-year to $667.1 million. Although this fell short of the $674.52 million analysts had projected, Ollie's demonstrated resilience with a 2.8% increase in comparable store sales.

The market's positive reaction appears to be driven by Ollie's aggressive growth strategy. The company announced plans to accelerate its store openings, targeting 75 new locations in fiscal 2025, up from 50 in fiscal 2024. This expansion comes as Ollie's sees opportunities to capitalize on other retailers closing stores or going bankrupt, allowing them to acquire prime real estate and expand their footprint rapidly. The recent acquisition of 40 former Big Lots store locations underscores this strategy.

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.

The pre-market stock surge also reflects investor enthusiasm for Ollie's newly announced $300 million share repurchase authorization, signaling confidence in the company's long-term value and commitment to returning capital to shareholders. 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.