Big Lots, still trying to build traction on its turnaround, posted a third-quarter comp decline even as earnings and revenue exceeded or met a Wall Street estimate.

The company also announced the appointment of former Burlington Stores executive Kristen Cox to senior vice president, chief stores officer. Former Big Lots executive Seth Marks returns to the retailer in the newly established role of senior vice president, extreme value sourcing. 

Net income for Big Lots was $4.7 million, or 16 cents per diluted share, versus a net loss of $103 million, or $3.56 per diluted share, in the year-earlier period, the company reported. Adjusted for one-time events, net loss was $127.9 million or $4.38 per diluted share, versus net loss of $86.7 million, or $2.99 per diluted share, in the year-prior quarter.

An analyst consensus estimate published by Yahoo Finance called for a loss of $4.66 per diluted share and revenues of $1.03 billion.

Comparable sales tumbled 13.2%. Net sales were $1.03 billion versus $1.2 billion in the year-before quarter.

Operating profit was $19.7 million versus an operating loss of $130.8 million in the year-previous period.  Adjusted operating loss was $113.9 million versus $109.1 million. 

Bruce Thorn, Big Lots president and CEO, said home categories continue to struggle especially given consumer wariness about big-ticket purchases. He noted Big Lots had seen some sequential improvement in seasonal items. The company also has been able to rebuild its furnishings assortment after last year’s sudden closure of United Furniture, a key vendor.

In announcing the financial results, Thorn said, “Although the environment remains challenging, we continued to make significant progress in turning around our business.  Our key strategic actions are building momentum, and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value. As a result, we are now on track to deliver an adjusted Q4 operating result ahead of last year, which would mark the first quarter of year-over-year improvement in nearly three years, and we expect quarterly year-over-year improvements to continue through 2024.”

As for third-quarter results, Thorn said, “We were able to deliver on or exceed our beginning-of-quarter guidance on all key metrics. We posted a sequential improvement in comp sales, significant year-over-year improvement in gross margin rate, and adjusted SG&A well below last year despite absorbing additional expense related to the recent sale/leaseback of our California distribution center and 23 owned stores. We believe the improvements in Q3 were driven by the five key actions that underlie our strategy, which are to own bargains, communicate unmistakable value, increase store relevance, win with omnichannel and drive productivity.

“Additionally, we are on track to achieve over $100 million of SG&A cost savings prior to Project Springboard benefits for the year,” Thorn continued. “Project Springboard is off to a strong start and on track to deliver $200 million of bottom-line benefits, spanning gross margin and SG&A, of which we expect a high proportion to be realized on a run-rate basis by the end of 2024. To support our ongoing turnaround, our efforts to aggressively manage costs, inventory and capital expenditures, as well as monetize our assets with completion of a $306 million sale/leaseback in the quarter, have allowed us to significantly strengthen our balance sheet. Our ongoing efforts are providing us with ample liquidity to weather the macroeconomic challenges, even if they are prolonged.” 

Cox will oversee the development and implementation of operational strategies to drive sales, improve margins and enhance customer service across all stores, filling the role left vacant by the retirement of Nick Padovano earlier this year, Big Lots reported. Marks rejoins Big Lots from Channel Control Merchants, for which he most recently served as the chief merchandising officer. CCM bills itself as a reverse logistics retailer selling products through a network of physical stores located across the Southeast, Texas and Canada.

The first Wayfair banner brick-and-mortar retail store will open near Chicago in Wilmette, Ill., the municipality announced.

Wayfair stated that it would have no comment on the store plan and directed HomePage News to the Village of Wilmette website and announcement.

The Wayfair banner store will follow on from the company’s first new physical retail location under the AllModern banner, which opened in May. The AllModern store, in Lynnfield, Mass., offers a technology-driven shopping experience with consumers able to tap employee assistance and online resources, Wayfair stated.

According to the village of Wilmette, WS Development, a Massachusetts-based privately held mixed-use developer with properties that include lifestyle and community destinations, is purchasing Edens Plaza and has executed a lease with Wayfair for more than 152,000 square feet of retail space, located about 14 miles from Chicago at the northwest corner of Lake Avenue and Skokie Boulevard, just off I-94, the Edens Expressway. The development will take space that was home to a Carson Pirie Scott.

WS Development also runs the Marketplace development in Lynnfield where the new AllModern store, at 10,000 square feet total space and 7,500 square feet of retail space, operates. Wayfair plans call for physical stores under various of its retail banners, with a second AllModern and a Joss & Main store planned to open this fall, according to the company. The second AllModern will open at Legacy Place, in Dedham, Mass., and the Joss & Main in the Burlington Mall in Burlington, Mass., a Simon property.

The Edens Plaza location will be the first to feature the new Wayfair retail concept when it opens, according to announced plans, in mid-2023. Wayfair opened a namesake store in Natick, MA, in 2019 then closed it in 2020. With a little more than 3,500 square feet of retail space, it was a much smaller store than the one that will debut in Wilmette.

“It’s a privilege to have the opportunity to bring a first-to-market experience to the community of Wilmette in Wayfair and to help steward the evolution of a place that’s served the community so well and for so long. We look forward to working with the Village to position Edens Plaza for its next chapter,” said Dick Marks, vice chairman and partner at WS Development.