Big Lots beats outlook with same-store sales

COLUMBUS, Ohio Big Lots has reported that second quarter retail sales for fiscal quarter ended Aug. 4 increased 2.8% to $1.1 billion, compared to $1.5 billion for the second quarter of fiscal 2006. Comparable-store sales increased 5.2% for the second quarter of fiscal 2007, above the company's guidance for a comparable-store sales increase in the range of 2% to 4%.

For the 26-week year-to-date period ended Aug. 4, retail sales increased 3.1% to $2.2 billion, compared to $2.1 billion for the same period in fiscal 2006. Comparable-store sales increased 5% for the year-to-date period.

According to the company, comparable-store sales in the second quarter were driven by an increase in the value of the average basket as the company's "raise the ring" strategy continues to deliver positive results. From a merchandising perspective, sales comps were strongest in the seasonal category, increasing in the mid- teens and in line with the company's expectations. Furniture comps, which exclude the home furnishings deal mentioned below, increased in the high- single digits while consumables comps increased in the mid-single digits with good customer response in all classifications.