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COLUMBUS, Ohio — Furniture was the top performer at Big Lots during the second quarter, and the company’s chief executive name checked some prominent players in the industry as he described how the off-price specialist has stepped up the business.
“I would say one of the biggest changes is how we have orchestrated top-to-top meetings with the big guns,” president and CEO David Campisi told investors during a recent conference call with analysts. “Every quarter, the CEO of Serta has been in my office.”
Campisi said he’s having similar meetings with the heads of Ashley Furniture and United Furniture Inds. to lay out three-year plans. “These are huge companies that previously we had not hammered out strategy with.”
Same-store sales for furniture advanced in the high single digits during the quarter, with mattresses and upholstered pieces posting the strongest results, he said.
While Big Lots’ Easy Leasing program has been a big driver in making those gains, it still accounts for just 13% to 15% of furniture transactions.
When the company launches ecommerce next year, Campisi said he expects furniture to become the biggest category for buy online/pick up in store.
For the quarter ended Aug. 1, Big Lots income from continuing operations rose 2.9% to $17.7 million or 35 cents per share — beating expectations. Sales inched up 1.2% to $1.2 billion. Comps increased 2.8%, marking the sixth consecutive quarter of same-store sales increases.
Year to date, income from continuing operations climbed 9.2% to $50 million or 95 cents per share. Sales ticked up 0.5% to $2.5 billion.
