Mark Szakonyi | Aug 29, 2011 9:15AM EDT
Big Lots is comfortable with its inventory levels being down more than 70 percent year-over-year, considering the “fragile” consumer market.
“Lots of empty shelves and a fair amount of inventory that's in stores has aged and we're moving swiftly to liquidate,” said Timothy Johnson, the company’s vice president of strategic planning and investor relations.
The Columbus, Ohio-based closeout retailer’s revenue in the second quarter was up 6 percent year-over-year to $780 million, largely because the acquisition of Canada’s Liquidation Word, new U.S. stores and roughly 2 percent inventory growth at each U.S. store.
Big Lots CEO, President and Chairman Steve Fishman said its market is still “fragile” and customers remain “challenged and concerned,” according to a Seeking Alpha transcript of the company’s second-quarter call with investors.
The company’s profit in the second quarter fell 8 percent to $35.7 million, mainly because the retailer was hit with a charge related to the acquisition of Liquidation World. Big Lots operates 1,418 stores in the continental U.S. and 88 stores in Canada.
-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC
