In third-quarter fiscal 2014, Big Lots reported adjusted loss of
$0.06 per share, a penny wider than the Zacks Consensus Estimate,
and revenues of $1,107.1 million, which also fell short of the
Zacks Consensus mark. Moreover, rise in online shopping has the
potential to mar sales in the upcoming quarter as the company does
not have omnichannel capacities. This was well reflected in the
subdued guidance for the fourth quarter where comps are projected
to increase in the low-single digits. However, the company's
efforts to turnaround are impressive. Furniture, food and
consumables categories continue to gain traction. Moreover, the
company completed rolling out freezer/cooler facility to 750 stores
right before the holiday season. Also, furniture financing along
with adding more brands to the assortments and revamping the food
department are some of measures that are being pursued to generate
higher sales. Consequently we remain Neutral on the stock.
Based in Columbus, OH and founded in 1967, Big Lots, Inc. (BIG)
is a broad-line closeout retailer in the United States. The company
offers products under various merchandising categories, which
include Consumables, Home, Furniture, Hardlines, Seasonal and
Other. As of Dec 5, 2014, Big Lots operated 1,495 stores in the
Consumables Category: This includes food, health and beauty,
plastics, paper, chemical and pet departments.
Home category: This includes domestics, stationery and home
Furniture Category: This includes the upholstery, mattresses,
ready-to-assemble and case goods departments (consist of bedroom,
dining room and occasional furniture).
Hardlines Category: This includes electronics, appliances, tools
and home maintenance departments.
Seasonal Category: This includes lawn and garden, Christmas,
summer and other holiday departments.
Other Category: This includes the toy, jewelry, infant
accessories and apparel departments.
Big Lots pulled out of Canada in the first-quarter fiscal 2014
and reported the operations as "discontinued." In the third quarter
of fiscal 2013, Big Lots announced its decision to wind up its
operations in the unprofitable Canadian markets. Notably, the
company had ventured into Canada in 2011 with the acquisition of
Liquidation World Inc. However, after careful business evaluation,
Big Lots decided to move out of Canada and focus on other areas
such as e-Commerce and omnichannel capabilities.
Big Lots Inc (BIG): Read the Full Research
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
BIG LOTS INC (BIG): Free Stock Analysis Report
To read this article on Zacks.com click here.