Gordon Haskett Downgrades Ollie's Bargain Outlet (OLLI) to Accumulate (2), 'To be clear, we are big fans of the team'

Gordon Haskett analyst Eric Cohen downgraded Ollie's Bargain Outlet (NASDAQ: OLLI) from Buy to Accumulate with a price target of $90, reduced from $100.

The downgrade follows the company's first quarter 2026 earnings report, which showed earnings per share of $0.91 compared to Cohen's estimate of $0.88. Despite beating earnings expectations, the analyst expressed concerns about the company's comparable store sales growth of 1.7%.

Cohen noted that the performance appeared weak relative to direct off-price retail competitors TJX, Ross Stores, Burlington, and Citi Trends, which delivered an average comparable store sales increase of 12.0% during the same period. The analyst pointed to tax refund dollars being up approximately $50 billion year-over-year during the quarter.

The analyst cited weather conditions, rising gas prices, and geopolitical tensions as potential factors affecting performance. Cohen also referenced traffic data showing a deceleration from a 4.0% to 6.0% growth rate in the first three quarters of the previous year to approximately 0.2% in the first quarter of 2026.

Despite the downgrade, Cohen expressed confidence in the management team, particularly CEO Eric van der Valk. The analyst noted the company's current sales productivity of approximately $129 in sales per square foot.

Shares of Ollie's Bargain Outlet closed at $79.74 in the previous trading session.

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