Posted 2/4/2010 - 11:21:58 AM

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A strong holiday selling season combined with enhanced in-store merchandising execution helped Big Lots report its strongest fourth-quarter comparable store increase in a decade.

According to the company, fourth-quarter retail sales for the fiscal quarter ended January 30 increased 6.9% to $1,451.5 million, compared to $1,357.4 million for the fourth quarter of fiscal 2008.  Comparable store sales for stores open at least two years at the beginning of the fiscal year increased 5.1% for the fourth quarter of fiscal 2009, exceeding the company’s most recent guidance that called for an increase in the range of 3.5% to 4.5%. 

The variance to the high end of its comparable store sales guidance is directly related to the outperformance of the business in the last three weeks of January as a result of better-than-expected results from Big Lots’ mid-January ad circular event, strong response to its semi-annual Buzz Club/Buzz Club Rewards promotion sent out to more than 5.5 million customers and less unfavorable weather compared to last year.     

For the 52-week fiscal 2009, retail sales increased 1.5% to $4,667.7 million, compared to $4,598.4 million for the fifty-two week fiscal 2008.  Comparable store sales increased 0.7% for fiscal 2009. 

"We recorded our largest fourth-quarter comp sales increase in the last 10 years,” said Steve Fishman, chairman and CEO. “Our merchants delivered great values, our stores executed more consistently, and we believe we are beginning to see some early benefits from our new Buzz Club Rewards program. Additionally, we believe the improvement in consumer discretionary trends first experienced in the September/October timeframe continued through the holiday season and benefited our results."

He noted that the company’s sales performance was positive across all major merchandise categories with home, furniture, and hardlines as the best performing categories comping up in the high single digits for the quarter.