Ollie's Bargain Outlet Holdings, Inc. Common Stock

Capital structure and performance · Financial performance volatility

There is risk associated with our fluctuating quarterly operating results, and we may fall short of prior periods, our projections, or the expectations of securities analysts or investors. Our stock price is subject to analyst and industry influence, perceptions of future performance, our actual or perceived navigation of environmental, social, and governance principles, and other factors that can result in stock price volatility.

Credit and liquidity · Liquidity and cash flow constraints

We depend on cash flows from operations to pay our lease expenses and to fulfill our other cash needs. If our business does not generate sufficient cash flows from operating activities to fund these expenses and needs and sufficient funds are not otherwise available to us, we may not be able to service our lease expenses, grow our business, respond to competitive challenges, or fund our other liquidity and capital needs.

Capital structure and performance · Dividend policy and capital allocation

We do not expect to pay any cash dividends for the foreseeable future. The continued operation and expansion of our business will require substantial funding. We do not anticipate that we will pay any dividends to holders of our common stock for the foreseeable future.

Cybersecurity and data protection · Third party data security and vendors

In connection with sales, we make every effort not to transmit confidential credit and debit card information. Instead, we work with a third-party processing agent to provide us with a token to use in our payment process. We must rely on our third-party provider's uninterrupted and secure services, and if there is a failure or disruption in that process, there may be limited circumstances in which we are required to transmit encrypted confidential information.

Digital transformation and innovation · Artificial intelligence and automation

We may not adopt technological advancements, such as AI, as quickly or effectively as our competitors, or we may rely on such technological advancements to too great an extent. If we fail to incorporate AI into our business operations as quickly or effectively as our competitors do, such failure could impair our ability to compete effectively.

Technology infrastructure · Technology systems and infrastructure failure

An increasingly significant portion of our sales depends on the continuing operation of our information technology and communications systems, including, but not limited to, our point-of-sale system and our credit card processing systems. Any errors or vulnerabilities in our systems, or damage to or failure of our systems, could result in interruptions in our services, non-compliance with certain regulations, substantial remediation costs.

Legal and litigation · Product liability and warranty claims

Customers have asserted claims, and may in the future assert claims, that they have sustained injuries from merchandise purchased from us, and we may be subject to lawsuits relating to these claims. There is a risk that these claims may exceed, or fall outside the scope of, our insurance coverage.

Legal and litigation · Employment and labor law compliance

Our ability to control labor costs is subject to numerous external factors and compliance with laws and regulatory structures, including competition for, and availability of, qualified personnel in a given market, unemployment levels within those markets, governmental regulatory bodies such as the Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB), prevailing wage rates and wage and hour laws, minimum wage laws.

Data and privacy · Regulatory investigations and penalties

Our failure to comply with privacy, data protection, and information security laws could result in potentially significant regulatory and/or governmental investigations and/or actions, litigation, fines, sanctions, ongoing regulatory monitoring, and customer attrition.

Reputation and brand · Brand damage and negative publicity

Negative online postings or comments about our business, including as a result of inaccurate, fictitious, or even malicious postings or social media content, could adversely affect our business and cause damage to the value of our brand. Information spread over social media, whether based on actual or perceived conditions or events, could be disseminated before we can meaningfully investigate and respond.

Reputation and brand · Esg environmental social governance performance

Investor and regulatory focus has intensified with respect to certain environmental, social, and governance (ESG) matters. Our response may fall short of expectations in either case. There can be no certainty that we will successfully navigate or manage all of the ESG issues, or that we will successfully meet the expectations of investors or others.

Social and demographic · Public perception and reputation

Our co-branded credit card program could pose reputational risk if not properly executed. If the program is not properly executed, is renewed on less favorable terms, or is terminated, it could adversely affect our operations and harm our brand, reputation, and relationship with our loyal customer base, including our Ollie's Army loyalty program members.

Natural and catastrophic events · Pandemic and public health crises

Epidemic or pandemic outbreaks, terrorist attacks, war, protests, civil unrest, and disruptive political events in regions where our stores are located could impact our management and sales associates, our inventory supply, our delivery schedules, or our ability to keep our stores open due to mandatory governmental restrictions.

Market position and competition · Disruptive competitors and new market entrants

We do not compete in the growing online and omnichannel retail marketplace, which could have a material adverse effect on our business. Increased competition from online or omnichannel retailers and our lack of an online or omnichannel retail presence may reduce our customers' desire to purchase merchandise from us.

Customer and revenue · Changing customer preferences and behavior

To the extent that we implement online operations, we would incur substantial expenses related to such activities and would be exposed to additional risks. However, with the growing acceptance of online and omnichannel shopping, both among consumers who previously shopped online and consumers who did not previously do so, we may continue to face challenges related to customers shopping in brick-and-mortar stores.

Human capital and workforce · Talent acquisition and retention

We have experienced in the past, and expect to continue to experience, increased labor shortages at some of our stores and distribution centers. Labor shortages and increased turnover rates involving our team members have led to, and could in the future lead to, increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees.

Core operations · Capacity utilization and efficiency

We may not be able to develop and operate our distribution centers in an efficient or effective manner and that may result in not having sufficient inventory in our stores. Processing delays or difficulties in operations at our existing distribution centers could adversely affect our current operations by causing existing stores to have insufficient inventory.

Supply chain and procurement · Transportation and logistics disruption

We rely on third parties to move merchandise through ports and transport them from ports to our centralized distribution centers. The demand for space onboard oceangoing vessels can vary and costs to secure space can vary greatly. We may be subject to higher transportation costs or be unable to secure space for containers on economically reasonable terms.

Project and contract management · Project execution and delivery risks

Our new store growth is dependent on our ability to successfully expand our distribution network capacity, and failure to achieve or sustain these plans could adversely affect our performance. Processing delays or difficulties in operations at our existing distribution centers or delays in opening, processing delays, or difficulties in operations at our new distribution centers, could adversely affect our current operations.

Core operations · Quality control and product defects

The cost of compliance with product safety regulations and risks related to product liability claims, lawsuits, and product recalls could damage our reputation, increase our cost of doing business. If our merchandise does not meet applicable governmental safety standards or our customers' expectations regarding quality or safety, we could experience lost sales and increased costs.