Big Lots to re-launch omnichannel strategy

Big Lots Inc. did what it was supposed to do in the fourth quarter -- and more, as the discount retailer reported a better-than-expected 3% increase in same store sales.

The company also announced a new omnichannel initiative that it expects to put in place by the first quarter of fiscal 2016. Big Lots has dabbled in online selling in the past, but had discontinued those operations after not getting the strategy down quite right. Now the company says it is looking to fully embrace omnichannel retailing in-store and on its website with a new initiative launching this year.

Big Lots said higher gross margin helped the company increase net income 12% to $94.43 million in the fourth quarter of fiscal 2014 from $84.35 million in the same quarter a year earlier.Net sales climbed 1% to $1.59 billion from $1.57 billion.

"Throughout 2014, we remained focused on our strategy and the consistency of our performance allowed us to drive positive comps in all four quarters for the first time in eight years,” said David Campisi, CEO and president of Big Lots. “Jennifer has responded positively to new marketing messaging and our improved merchandise assortments focused on quality, brands, fashion, and value."

During the full fiscal year, net income declined 8% to $$114.28 million 125.29 million, driven by growth in selling, general and administrative (SG&A) expenses. Net sales increased 1% to $$5.17 billion, compared to $5.12 billion. Same-store sales increased 1.8%. For the first quarter of fiscal 2015, Big Lots expects same-store sales growth of 1-2%.

During the full fiscal year, Big Lots expects a store sales increase in the low single-digit range and total sales to be approximately flat.