Big Lots
stock was surging Thursday after the retailer posted a narrower-than-expected third-quarter loss as it works to improve its business.
Big Lots
reported a third-quarter loss of $4.38 a share on sales of $1.027 billion. Analysts surveyed by FactSet were expecting a loss of $4.68 a share on sales of $1.031 billion.
Same-store sales decreased 13.2% in the quarter, which was in line with Wall Street expectations.
“Although the environment remains challenging, we continued to make significant progress in turning around our business,” Chief Executive Bruce Thorn said in the earnings release. “Our key strategic actions are building momentum and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value.”
Thorn added that the company expects fourth-quarter operating results to come in better than the year before, which would be the first quarterly year-over-year improvement in about three years.
For the fourth quarter,
Big Lots
expects sales to improve relative to the third quarter. The gross margin rate is expected to improve to about 38%, driven by reduced promotional activity, lower freight costs, and cost reduction initiatives.
Shares of Big Lots were rising 15% Thursday to $5.50. The stock has fallen 62% this year.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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