Supply chain woes affect US discount retailer Big Lots Q2 sales

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company’s net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).

 

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company's net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).#

“We have completed another solid quarter that demonstrated the strength of our Operation North Star strategic initiatives, with continued focus on our growth drivers – customer growth, merchandise productivity, e-commerce, and store count growth,” Bruce Thorn, president and CEO of Big Lots, said in a press release. “We saw two-year comp sales growth across all merchandise categories other than food, with strong double digit two-year growth in furniture, soft home, hard home, and apparel, electronics & other.”

 

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company's net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).#

E-commerce demand grew by 10 per cent in the second quarter compared to fiscal 2020 representing over 400 per cent growth to the Q2 of 2019. Gross margin slipped to $577.8 million ($683.5 million). Moreover, the American retailer’s operating profit plunged to $53.8 million ($608.6 million).

 

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company's net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).#

“Our results for the quarter were tempered by continued supply chain and freight headwinds, as well as other inflationary pressures. Against this backdrop, we continue to invest in our future growth. Our first forward distribution centre became operational at the end of the quarter, and the second will begin operations next week,” Thorn added.

 

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company's net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).#

In its outlook for the fiscal 2021, the company mentioned that it expects a low single digit comp decline, which incorporates an adverse sales impact from supply chain disruption.

 

Second quarter (Q2) sales at Big Lots, a US-based discount retailer, declined 11.4 per cent to $1,457 million compared to the sales of $1,644 million in the same period of previous fiscal, while grew 16.4 per cent over Q2 of FY19. The company's net income for the three-month period ended on July 31, 2021, dropped to $37.7 million (Q2 FY20: $451.9 million).#

“We know that the supply chain headwinds will continue into fall and holiday, and the situation remains fluid. But our team is working exceptionally hard to get through this and make sure that our assortments continue to surprise our customers and deliver phenomenal value,” Thorn further said.