Big Lots owning/winning key categories
Big Lots is forecasting holiday season success as its core customer responds favorably to a range of merchandising strategies.
Big Lots, an operator of 1,430 stores who generates a third of its sales from food and consumables, said its same store sales increased 1% during the third quarter ended Oct. 28. A similar increase is expected during the fourth quarter with comps forecast to range from flat to up 2%.
“I'm very pleased with our third quarter results. In a challenging retail environment, the team delivered on our financial commitments with sales in line with our communicated guidance and EPS growth above our expectations,” said David Campisi, CEO and President of Big Lots. “(Our core customer) continues to respond positively to our strategy focusing on ownable and winnable merchandise categories, improved merchandise presentations, and more consistent, friendly customer service and in-store execution."
Sales during the quarter increased 0.5% to slightly more than $1.1 billion as the 1% comp increase was offset by the closing of store locations where leases expired. Profits adjusted to exclude non-recurring gains increased to $2.5 million, or six cents a share, compared to four cents the prior year. The company had forecast adjusted earnings per share in the range of one to five cents. The modest earnings beat couple with same store sales expectations prompted the company to increase its full year profit forecast to a range of $4.23 to $4.28 from $4.15 to $4.25.