Big Lots (NYSE:BIG) shares surged Thursday on the back of its latest earnings release, which saw it top consensus earnings expectations.
The company reported Q3 EPS of ($4.38), $0.30 better than the analysts' estimate of ($4.68). Revenue for the quarter came in at $1.03 billion, down 14.7% from last year but in-line with the consensus estimate of $1.03 billion.
Big Lots shares are currently up more than 19.5%, trading around the $5.75 per share mark.
The company said its year-over-year sales decline was driven by a comparable sales decrease of 13.2%. In addition, a net decrease in store count contributed approximately 150 basis points of sales decline compared to the third quarter of 2022.
"Although the environment remains challenging, we continued to make significant progress in turning around our business," said Bruce Thorn, President and CEO of Big Lots. "Our key strategic actions are building momentum and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value."
Looking ahead, in Q4, the company expects comp sales to improve relative to the third quarter and be in the high-single-digit negative range. Its gross margin rate is expected to improve to approximately 38%, driven by reduced markdown activity, lower freight costs, and cost reduction and productivity initiatives.
In addition, BIG expects its Q4 adjusted operating result to be ahead of last year.