Revenue during the quarter went down marginally by 0.98 percent to $1,105.50 million from $1,116.47 million in the previous year period. Gross margin for the quarter expanded 57 basis points over the previous year period to 39.98 percent. Operating margin for the quarter period stood at positive 0.18 percent as compared to a negative 0.19 percent for the previous year period.

Operating income for the quarter was $1.94 million, compared with an operating loss of $2.16 million in the previous year period.

However, the adjusted operating income for the quarter stood at $2.81 million compared to $0.40 million in the prior year period. At the same time, adjusted operating margin improved 22 basis points in the quarter to 0.25 percent from 0.04 percent in the last year period.

Commenting on today’s release, David Campisi, Chief Executive Officer and President of Big Lots, stated, "We are pleased to report in a challenging retail environment the team delivered upon our financial commitments. Sales were in line with our communicated guidance while EPS was above our expectations. Jennifer continues to positively respond to our focus on ownable and winnable merchandise categories, improved merchandise presentations and more consistent in-store execution."

For fiscal year 2016, the company expects diluted earnings per share to be in the range of $3.55 to $3.60 on adjusted basis. On an adjusted basis, the company expects diluted earnings per share to be in the range of $2.18 to $2.23 for the fourth-quarter.

Operating cash flow declines
Big Lots, Inc. has generated cash of $43.54 million from operating activities during the nine month period, down 16.79 percent or $8.78 million, when compared with the last year period.

The company has spent $71.84 million cash to meet investing activities during the nine month period as against cash outgo of $98.30 million in the last year period.

Cash flow from financing activities was $33.90 million for the nine month period, down 38.64 percent or $21.35 million, when compared with the last year period.

Cash and cash equivalents stood at $59.74 million as on Oct. 29, 2016, down 2.92 percent or $1.80 million from $61.54 million on Oct. 31, 2015.

Debt moves up 
Big Lots, Inc. has witnessed an increase in total debt over the last one year. It stood at $362.90 million as on Oct. 29, 2016, up 8.36 percent or $28 million from $334.90 million on Oct. 31, 2015. Big Lots has witnessed an increase in long-term debt over the last one year. It stood at $362.90 million as on Oct. 29, 2016, up 8.36 percent or $28 million from $334.90 million on Oct. 31, 2015. Total debt was 19.65 percent of total assets as on Oct. 29, 2016, compared with 17.73 percent on Oct. 31, 2015. Debt to equity ratio was at 0.67 as on Oct. 29, 2016, up from 0.53 as on Oct. 31, 2015.