Why Discount Retail Chain Big Lots' Stock Is Climbing Today
Portfolio Pulse from Shivani Kumaresan
Big Lots Inc (NYSE:BIG) reported a decline in Q3 FY23 sales by 14.7% to $1.027 billion, missing estimates slightly. Comparable sales decreased by 13.2%. However, gross margin expanded to 36.4%, and operating income was $19.7 million, compared to a loss the previous year. Adjusted EPS loss was smaller than expected. The company completed a sale and leaseback transaction, resulting in $306 million in proceeds, and reiterated its Q4 outlook with expected improvements. BIG shares rose by 7.08% in premarket trading.
November 30, 2023 | 2:12 pm
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Big Lots reported lower Q3 sales but improved margins and operating income. Adjusted EPS loss was better than expected, and the company confirmed a strong Q4 outlook.
Despite the sales decline, the improvement in gross margin and operating income, along with a better-than-expected EPS loss, are positive indicators. The sale and leaseback deal added significant cash proceeds, and the reiteration of a strong Q4 outlook could boost investor confidence, leading to a short-term positive impact on the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100