Earlier this week the discounter provided a long-range growth and margin outlook that includes a sales goal of $8bn to $10bn driven by approximately 500 net store openings, merchandise sales productivity initiatives and continued e-commerce growth.
Big Lots, which currently operates 1,431 stores in 47 states, reported net sales of $6.2bn for fiscal 2020. In addition, the company expects an operating margin goal of six per cent to eight per cent driven by gross margin improvement and expense leverage, and a return on invested capital goal of 20 per cent to 25 per cent.
“We see a clear and long runway for growth ahead of us, coupled with the opportunity to drive returns through margin expansion and judicious capital allocation,” said CEO Bruce Thorn. “We have all of the foundations in place to accomplish this, including a seasoned and ambitious team, new tools and technologies, and a proven pipeline of innovation.”
The retailer also provided an update on results for the fourth quarter of fiscal 2021. Through the end of fiscal December, its performance was at the upper end of its expectations. On a quarter-to-date basis through the end of fiscal December, the company achieved a two-year comparable sales increase of approximately nine per cent.
