Ollie's Bargain Outlet Holdings, Inc.OLLI
Ollie's Bargain Outlet Holdings, Inc. Stock Compensation Disclosure
| (9) |
Equity Incentive Plans
|
In connection with its initial public offering, the Company adopted the 2015 equity incentive plan (the “2015 Plan”) pursuant to which the Company’s Board of Directors may grant stock options, restricted shares or other awards to employees, directors and consultants. The 2015 Plan allowed for the issuance of up to 5,250,000 shares. Awards were made pursuant to agreements and are subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. After adoption of the 2025 Plan as described below, no additional equity grants were made under the 2015 Plan, although equity grants made under the 2015 Plan will continue to be governed by the 2015 Plan.
As of June 12, 2025, upon stockholder approval of the same at the Company’s annual meeting, the Company adopted a new 2025 Equity Incentive Plan (the “2025 Plan”). Pursuant to the 2025 Plan, the
Company’s Board of Directors may grant stock options, restricted shares, restricted stock units, or other awards to officers, directors, key employees, and professional service providers, pursuant to agreements and subject to vesting and other
restrictions as determined by the Board of Directors.
As of January 31, 2026, there were 4,909,853 shares available for grant under the 2025 Plan.
Stock Options
The exercise price for stock options is determined at the fair value of the underlying stock on the date of grant. The vesting period for awards granted is generally set at four years (25% ratably per year). Awards are subject to employment for vesting, expire 10 years from the date of grant, and are not transferable other than upon death.
A summary of the Company’s stock option activity and related information follows for 2023, 2024 and 2025:
| Number of options | Weighted average exercise price | Weighted average remaining contractual term (years) | Aggregate intrinsic value | |||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||
| Outstanding at January 28, 2023 | 1,209,251 | $ | 53.92 | |||||||||||
| Granted | 144,630 | 57.91 | ||||||||||||
| Forfeited | (54,119 | ) | 62.90 | |||||||||||
| Exercised | (180,278 | ) | 37.09 | |||||||||||
| Outstanding at February 3, 2024 | 1,119,484 | 56.71 | ||||||||||||
| Granted | 126,683 | 75.37 | ||||||||||||
| Forfeited | (8,645 | ) | 65.72 | |||||||||||
| Exercised | (453,859 | ) | 52.87 | |||||||||||
| Outstanding at February 1, 2025 | 783,663 | 61.85 | ||||||||||||
| Granted | 99,718 | 111.16 | ||||||||||||
| Forfeited | (3,982 | ) | 56.61 | |||||||||||
| Exercised | (284,978 | ) | 65.47 | |||||||||||
| Outstanding at January 31, 2026 | 594,421 | 68.42 | 6.9 | $ | 25,112 | |||||||||
| Exercisable at January 31, 2026 | 261,863 | 58.77 | 5.7 | $ | 13,497 | |||||||||
The intrinsic value of stock options exercised for 2025, 2024 and 2023 was $16.3 million, $19.6 million and $5.8 million, respectively.
The weighted average grant date fair value per option for options granted during 2025, 2024 and 2023 was $53.80, $39.27, and $29.07, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table:
| Fiscal Year Ended | |||||||||
| January 31, 2026 | February 1, 2025 | February 3, 2024 | |||||||
| Risk-free interest rate | 4.08% | | 4.27% | | 3.36% | | |||
| Expected dividend yield | — | — | — | ||||||
| Expected life | 5.32 years | 6.25 years | 6.25 years | ||||||
| Expected volatility | 48.20% | | 47.63% | | 47.16% | | |||
To estimate the expected life of stock options, the Company uses its historical information to develop reasonable expectations about future exercise patterns and post-vesting employment
termination behavior for its stock option grants. For expected volatility, the Company uses its historical information over the expected life of the option granted to calculate the fair value of option grants. The risk-free interest rate is
based on U.S. Treasury notes with a term approximating the expected life of the option.
Restricted Stock Units
Restricted stock units (“RSUs”) are issued at the closing price of the Company’s common stock on the date of grant. RSUs outstanding generally vest ratably over four years or cliff vest in one or four years. Awards are subject to employment for vesting and are not transferable other than upon death.
A summary of the Company’s RSU activity and related information for 2023, 2024 and 2025 is as follows:
|
Number
of shares
|
Weighted
average
grant date
fair value
|
|||||||
|
Nonvested balance at January 28, 2023
|
276,278 |
50.32 |
||||||
|
Granted
|
205,663 |
58.10 |
||||||
|
Forfeited
|
(27,783 |
)
|
53.24 |
|||||
|
Vested
|
(103,354 |
)
|
52.70 |
|||||
|
Nonvested balance at February 3, 2024
|
350,804 |
53.94 |
||||||
|
Granted
|
173,376 |
74.90 |
||||||
|
Forfeited
|
(18,682 |
)
|
61.89 |
|||||
|
Vested
|
(120,376 |
)
|
54.26 |
|||||
|
Nonvested balance at February 1, 2025
|
385,122 |
62.89 |
||||||
|
Granted
|
121,126 |
113.38 |
||||||
|
Forfeited
|
(21,294 |
)
|
78.56 |
|||||
|
Vested
|
(146,471 |
)
|
61.53 |
|||||
|
Nonvested balance at January 31, 2026
|
338,483 |
80.56 |
||||||
Stock-Based Compensation Expense
The compensation cost for stock options and RSUs, which have been recorded within selling, general, and administrative expenses on the condensed consolidated statements of income, related to the Company’s equity incentive plans, was $13.1 million, $19.4 million, and $12.2 million for 2025, 2024, and 2023, respectively.
As of January 31, 2026, there was $23.6 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.5 years. Compensation costs related to awards are recognized using the straight-line method.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 26, 2025 | |
| 2024 | Mar 27, 2024 | |
| 2023 | Mar 24, 2023 | |
| 2022 | Mar 25, 2022 | |
| 2021 | Mar 24, 2021 | |
| 2020 | Mar 25, 2020 | |
| 2019 | Mar 29, 2019 | |
| 2018 | Apr 4, 2018 | |
| 2017 | Mar 29, 2017 | |
| 2016 | Apr 11, 2016 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.