Why Big Lots Shares Are Jumping Today
Portfolio Pulse from Akanksha Bakshi
Big Lots Inc (NYSE:BIG) reported a 15.4% YoY decline in Q2 FY23 sales to $1.14 billion, beating the consensus of $1.10 billion. The company's gross margin expanded to 33% and held $46.03 million in cash and equivalents as of July 29, 2023. The company also closed a $294 million sale/leaseback deal, which was not included in the quarter-end liquidity of $258 million. Big Lots expects business improvements in H2 2023, with a moderating comp sales decline and improving gross margins.
August 29, 2023 | 2:03 pm
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Big Lots reported a decline in Q2 FY23 sales but beat the consensus. The company's gross margin expanded and it closed a $294 million sale/leaseback deal. It expects business improvements in H2 2023.
Despite the decline in sales, Big Lots beat the consensus, which is a positive sign. The expansion of the gross margin and the closing of a $294 million sale/leaseback deal are also positive developments. The company's expectation of business improvements in H2 2023 could boost investor confidence, potentially leading to a short-term increase in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100