Big Lots Inc. (BIG) recently raised its fourth quarter 2009 guidance encouraged by better-than-expected sales results. By categories, electronics, furniture and hardlines experienced an improvement in demand.
The Columbus, Ohio based company Big Lots now expects quarterly comparable-store sales to increase in the range of 3.5% to 4.5%, up from 1.5% to 2.5% forecasted earlier. The shares of Big Lots rose 1.8% or 52 cents to close at $30.21 on Tuesday.
The company’s sagging comparable-store sales gained momentum in third-quarter 2009, when Big Lots saw its comps declining marginally by 0.2%, showing a substantial improvement from a decline of 2.4% posted in the second-quarter 2009.
The company also raised its fourth-quarter earnings guidance. Big Lots stated that it now sees quarterly earnings in the range of $1.19 to $1.24 per share, up from its earlier guidance of $1.09 to $1.14.
Big Lots operates as a broad-line closeout retailer in the United States offering food, health, beauty, plastics, paper, chemical and pet products as well as home decorative products, besides other product lines.
Big Lots’ closeout format provides it an edge over traditional discount retailers as it offers merchandise assortments to customers at very low prices.
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