Big Lots' (BIG) Omnichannel Endeavors Appear Encouraging
Big Lots, Inc. BIG appears well-poised for growth, thanks to the company’s impressive omni-channel initiatives. The company’s Operation North Star, which encompasses driving top-line growth, cost containment, and enhancement in systems and infrastructure, appears encouraging as well. Management is steadily taking steps to control expenses.
Let’s Delve Deeper
Big Lots is leaving no stone unturned to tap the best in the market, as clear from its efforts to leverage marketing strategies, with loyalty databases and e-commerce enhancement. The company is experiencing e-commerce growth, buoyed by the success of the “Buy Online Pick-up In Store” functionality and curbside pickup.
Additionally, the company’s same-day service at Instacart and Pickup seems profitable. It has further rolled out shipping from store capabilities to its outlets, which have been identified for two-day delivery. The company has also integrated web and store capabilities to drive enhanced returns, pricing, consistency and order visibility.
Big Lots, Inc. Price, Consensus and EPS Surprise
Big Lots, Inc. price-consensus-eps-surprise-chart | Big Lots, Inc. Quote
Big Lots has experienced positive developments across vital performance metrics. These accomplishments are credited to five core strategic initiatives, which are emphasizing ownership of bargains, delivering unequivocal and appealing value, augmenting store relevance, excelling in omnichannel operations and enhancing overall productivity.
Factors contributing to this optimism encompass an increased proportion of bargains, heightened product freshness, reduced freight expenses, sustained cost-cutting initiatives, more effective promotional strategies and a return to standardized markdown levels. These combined endeavors position Big Lots favorably for its future amid a challenging retail landscape.
The company has internally identified more than $100 million of structural selling, general and administrative (SG&A) savings, which have been incorporated into its 2023 expectations. These have the impact of the company’s decision to shut all its forward distribution centers to lower costs and remove excess capacity. The project has identified more than $200 million of additional bottom-line opportunities through Project Springboard across the gross margin and SG&A, the majority of which are likely to be realized in 2024.
Analysts seem optimistic about this Zacks Rank #3 (Hold) company. For fiscal 2024, the Zacks Consensus Estimate for Big Lots’ earnings per share (EPS) shows corresponding growth of 30.7% year over year. A VGM Score of B further speaks volumes for the stock. Shares of this general merchandise retailer have increased 4.5% year to date against the industry’s 2.5% drop.
Solid Picks in Retail
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and The Children's Place PLCE.
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 10% from the year-ago reported figure. ANF delivered a trailing four-quarter earnings surprise of 724.8%, on average.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an average earnings surprise of 43.2% in the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year EPS suggests growth of 33% from the year-ago reported figure.
The Children's Place, the children’s specialty apparel retailer, currently carries a Zacks Rank #2 (Buy). The company has a negative trailing four-quarter earnings surprise of 5%, on average.
The consensus estimate for The Children's Place’s current financial-year EPS suggests growth of 1,300% from the year-ago reported figure.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Big Lots, Inc. (BIG) : Free Stock Analysis Report
The Children's Place, Inc. (PLCE) : Free Stock Analysis Report
