Big Lots on track for sales milestone not reached in 8 years

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Big Lots CEO David Campisi has been making over the retail chain.

Dan Eaton

Staff reporter- Columbus Business First

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With a good fourth quarter, Big Lots Inc. may do something it hasn't done since 2006.

The Columbus-based discount retailer reported third-quarter results Friday, showing same-store sales increased 1.4 percent – the first time in three years the company has posted a positive increase in the third quarter.

CEO David Campisi, on a conference call for stock analysts, attributed the improvement to the company's push to have a more consistent and predictable assortment of goods.

Same-store sales also were up in the first and second quarters. If the company gets an increase in the fourth – it's projecting a low single-digit rise – it will be the first time in eight years that all four quarters were positive.

Third quarter historically is the toughest of the year for Big Lots, which did report a loss of $3.1 million, or 6 cents a share, an improvement on the $4.1 million, or 7 cents a share, loss in third quarter 2013. One reason for the annual struggle is because seasonal goods are big and the August-October period doesn't have a seasonal hook like outdoor/gardening early in the year or Christmas at the back end. Halloween is the big holiday in that period, but Campisi said the chain reduced its Halloween assortment.

Sales in four of Big Lots' (NYSE:BIG) seven departments were up, with furniture and food sales up double digits. The company completed its rollout of coolers and freezers to 750 of its 1,496 stores. It will add another 500 next year. Soft home, items like sheets and towels, were up mid-single digits. Consumables – household cleaners, offices supplies, pet products – were up low single digits.

Hard home, which are things like home improvement and appliances, and electronics both were down. That was anticipated since those two departments were hit the hardest by the new merchandising philosophy which dumped products like televisions. Seasonal was down as well.

Dan Eaton covers retailing and restaurants for Columbus Business First.