Ollie's Bargain Outlet (OLLI) expressed confidence in the durability of its off-price model and its ability to meet its 2026 outlook, supported by strong access to closeout merchandise, higher comparable-sales targets and flexible merchandising, RBC Capital Markets said in a Thursday note.

Management said Ollie's sources inventory from more than 1,300 vendors and the scale makes the company one of the largest buyers of closeout merchandise. Executives said this will help maintain a steady supply of discounted goods as the store base expands. Ongoing retail consolidation could also support the availability of closeouts over the long term.

Executives said the company raised its long-term comparable-sales algorithm to about 2%. The company's management said the change signals a greater focus on comparable-sales growth alongside unit expansion and the retailer has exceeded that level in 32 of the past 40 quarters excluding pandemic-affected periods.

Ollie's plans to return about 50% of free cash flow to shareholders, including at least $100 million in share buybacks in 2026. Management is confident in achieving the target while remaining opportunistic depending on share price performance, RBC added.

The firm maintained its outperform rating with a $155 price target.

Shares of the company were up nearly 2% in Thursday trading.

Price: 92.79, Change: +1.78, Percent Change: +1.96