Big Lots, Inc. (BIG) stock jumped 7% today after the U.S. discount retailer announced financial results for the third quarter of 2021.
Net sales for the third quarter of fiscal 2021 totaled $1,336 million, a 3.1% decrease compared to $1,378 million for the same period last year.
However, the company reported a net loss of $4.3 million, or $0.14 per share, for the quarter - in line with the company's guidance for the third quarter of a $0.10 to $0.20 loss per share.
Operation North Star
Big Lots year-over-year sales decline for the third quarter can be attributed to its record revenue year in 2020. When comparing current sales to the third quarter of 2019, sales increased 14.4%.
Commenting on today's results announcement, Bruce Thorn, President and CEO of Big Lots stated, "We are pleased to have delivered the quarter in line with our guidance, and to have sustained double-digit two-year comps despite supply chain challenges and the expiration of stimulus benefits."
"Looking forward, we expect to post a new record sales year in 2022, and we have ever-increasing confidence in our key growth drivers under Operation North Star"
Operation North Star is a business strategy that involves growing merchandise productivity, accelerating new store growth, and ramping up ecommerce capabilities.
Upcoming Holiday Season
So far, Big Lots has recorded an excellent start to the the fourth quarter, with "November comps up 10% on a two-year basis, including record Thanksgiving and Black Friday week sales."
Although the company believes supply chain challenges will continue in the near-term, it is aggressively managing them by "partnering with manufacturing and transportation partners, strategically prioritizing receipts, creating new capacity with forward distribution centers and DC by-pass program, and ensuring it is competitive in recruiting and retaining DC associates."
For the fourth quarter of fiscal 2021 the company expects to report diluted earnings per share in the range of $2.05 to $2.20.
