Big Lots (BIG), a merchandise retailer, saw its loss narrow to $3.44 million, or $0.06 a share for the quarter ended Nov. 01, 2014. In the previous year period, the company reported a loss of $9.52 million, or $0.17 a share.
Revenue during the quarter went up marginally by 0.20 percent to $1,107.10 million from $1,104.92 million in the previous year period. Gross margin for the quarter contracted 12 basis points over the previous year period to 38.93 percent. Operating margin for the quarter stood at negative 0.37 percent as compared to a negative 0.26 percent for the previous year period.
Operating loss for the quarter was $4.06 million, compared with an operating loss of $2.86 million in the previous year period.
Commenting on today's earnings release, David Campisi, chief executive officer and President of Big Lots, stated, "I'm pleased with the results we reported today. For the third consecutive quarter, our comps were positive as we continue to gain traction and build sales consistency in our business. Jennifer, our core customer, is responding positively to our improved merchandising strategies like the recent expansion of our Food category, our Furniture lease-to-purchase program, and our emphasis on the quality, brand, fashion, and value components of our assortments."
Big Lots has upgraded its guidance for fourth quarter fiscal 2014 income from continuing operations to a range of $1.70 to $1.80 a share. This guidance compares to its previous guidance of $1.70 to $1.76 a share. Comparable store sales for the fourth quarter of fiscal 2014 are estimated to increase in the low single digit range, it said.
Working capital declines Big Lots has witnessed a decline in the working capital over the last year. It stood at $556.40 million as at Nov. 01, 2014, down 16.68 percent or $111.37 million from $667.77 million on Nov. 02, 2013. Current ratio was at 1.74 as on Nov. 01, 2014, down from 1.84 on Nov. 02, 2013.
Big Lots has recorded a decline in long-term debt over the last one year. It stood at $283.40 million as on Nov. 01, 2014, down 12.53 percent or $40.60 million from $324 million on Nov. 02, 2013.
Total debt was 14.65 percent of total assets as on Nov. 01, 2014, compared with 15.18 percent on Nov. 02, 2013. Debt to equity ratio was almost stable at 0.40 as on Nov. 01, 2014, when compared with the last year. Interest coverage ratio decreased to 5.37 for the quarter from 2.77 for the same period last year.
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