BIG » Topics » Disclosures about Segments of an Enterprise and Related Information

These excerpts taken from the BIG 10-K filed Mar 30, 2009.
Disclosures about Segments of an Enterprise and Related Information. Net sales by merchandise category, as a percentage of total net sales, and net sales change in dollars and percentage in 2008 compared to 2007 were as follows:

      2008        2007        Change    
($ in thousands)                  
Consumables  $ 1,410,383 30.4 % $ 1,339,433 28.8 % $ 70,950 5.3 %
Home 713,103 15.4 783,047 16.8 (69,944 ) (8.9 )
Furniture   698,276 15.0 687,292 14.8     10,984 1.6
Hardlines 646,563 13.9   629,119   13.5   17,444 2.8
Seasonal   585,025   12.6     597,933 12.8 (12,908 )   (2.2 )
Other   591,933 12.7   619,478 13.3   (27,545 ) (4.4 )
     Net sales $ 4,645,283 100.0 % $ 4,656,302 100.0 % $ (11,019 ) (0.2 )% 

Net sales decreased $11.0 million (0.2%) to $4,645.3 million in 2008 compared to $4,656.3 million in 2007. There were fewer open stores in 2008 which caused a decrease of $34.0 million partially offset by our comparable store sales increase of 0.5%, which increased sales by $23.0 million. Our comparable store sales

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are calculated by using all stores that were open for at least two fiscal years as of the beginning of 2008. This calculation may not be comparable to other retailers who calculate comparable store sales based on other methods or criteria. Following a comparable store sales increase of 3.1% in the first half of 2008, sales trends softened resulting in a comparable store sales decrease of 1.9% in the second half of 2008. We believe that our comparable store sales results in the third and fourth quarters were in part due to the worsening general economic trends. As a result of the current general economic trends, consumers may elect to forego purchases in response to tighter credit and negative financial news. Reduced consumer spending may reduce our net sales. Based on sales trends in January and February 2009, and on current general economic trends, we expect comparable store sales to be flat to a decline of 2% in 2009.

From a merchandise perspective, the Consumables, Hardlines, and Furniture categories net sales increased while net sales of Home, Other, and Seasonal declined. Consumables continued its consistent sales growth throughout the year. As the year progressed, consumers chose to seek out value when shopping for the everyday household use items that we offer in our Consumables business. We believe our strategy of offering name brands at competitive prices has led to this consistently positive net sales performance in the Consumables category. The Hardlines category increase in net sales was driven by the availability in the second half of 2008 of multiple closeout deals containing higher ticket electronics, highlighted by significant values on items such as popular video games and personal computer laptops from national brand manufacturers. The Furniture category increase was driven by sales of mattresses, which were attributable to the customer response throughout the year especially when promotional pricing was coupled with holiday events such as the Labor Day mattress promotion. The Home category net sales consistently underperformed throughout the year continuing a trend which began in the first half of 2007. We believe our customers have elected to defer purchases of this type of merchandise; however, we have new merchant management in place for this category and intend to focus our efforts on the brand names and value propositions that have been successful in other merchandise categories. The Other category sales decline is primarily due to lower sales of toys principally in the latter half of the year, when toys represent a relatively larger portion of our total net sales. The lower toys sales results were partially offset within the Other category by higher sales driven by closeout deals of licensed kids underwear during the first half of the year. The Seasonal category net sales produced positive results in the first half of the year for lawn & garden and summer merchandise; however, the second half of the year’s net sales underperformed due to lower comparable store sales for Christmas, Halloween, and harvest. Because the Christmas selling season represents a higher portion of the total year’s sales in this category, the decline in Christmas merchandise sales drove the category sales lower for the year.

Disclosures
about Segments of an Enterprise and Related Information
. Net sales by merchandise category, as a percentage of total
net sales, and net sales change in dollars and percentage in 2008 compared to
2007 were as follows:



















































































































































































      2008        2007        Change    
($ in
thousands)
                 
Consumables  $ 1,410,383 30.4 % $ 1,339,433 28.8 % $ 70,950 5.3 %
Home 713,103
15.4 783,047
16.8 (69,944
) (8.9 )
Furniture   698,276 15.0 687,292 14.8     10,984 1.6
Hardlines
646,563
13.9   629,119
  13.5   17,444
2.8
Seasonal   585,025   12.6     597,933 12.8 (12,908 )   (2.2 )
Other   591,933 12.7   619,478 13.3   (27,545 ) (4.4 )
     Net
sales
$ 4,645,283 100.0 % $ 4,656,302 100.0 % $ (11,019 ) (0.2 )% 


Net sales decreased $11.0 million (0.2%)
to $4,645.3 million in 2008 compared to $4,656.3 million in 2007. There were
fewer open stores in 2008 which caused a decrease of $34.0 million partially
offset by our comparable store sales increase of 0.5%, which increased sales by
$23.0 million. Our comparable store sales


22





are calculated by using all stores that
were open for at least two fiscal years as of the beginning of 2008. This
calculation may not be comparable to other retailers who calculate comparable
store sales based on other methods or criteria. Following a comparable store
sales increase of 3.1% in the first half of 2008, sales trends softened
resulting in a comparable store sales decrease of 1.9% in the second half of
2008. We believe that our comparable store sales results in the third and fourth
quarters were in part due to the worsening general economic trends. As a result
of the current general economic trends, consumers may elect to forego purchases
in response to tighter credit and negative financial news. Reduced consumer
spending may reduce our net sales. Based on sales trends in January and February
2009, and on current general economic trends, we expect comparable store sales
to be flat to a decline of 2% in 2009.


From a merchandise perspective, the
Consumables, Hardlines, and Furniture categories net sales increased while net
sales of Home, Other, and Seasonal declined. Consumables continued its
consistent sales growth throughout the year. As the year progressed, consumers
chose to seek out value when shopping for the everyday household use items that
we offer in our Consumables business. We believe our strategy of offering name
brands at competitive prices has led to this consistently positive net sales
performance in the Consumables category. The Hardlines category increase in net
sales was driven by the availability in the second half of 2008 of multiple
closeout deals containing higher ticket electronics, highlighted by significant
values on items such as popular video games and personal computer laptops from
national brand manufacturers. The Furniture category increase was driven by
sales of mattresses, which were attributable to the customer response throughout
the year especially when promotional pricing was coupled with holiday events
such as the Labor Day mattress promotion. The Home category net sales
consistently underperformed throughout the year continuing a trend which began
in the first half of 2007. We believe our customers have elected to defer
purchases of this type of merchandise; however, we have new merchant management
in place for this category and intend to focus our efforts on the brand names
and value propositions that have been successful in other merchandise
categories. The Other category sales decline is primarily due to lower sales of
toys principally in the latter half of the year, when toys represent a
relatively larger portion of our total net sales. The lower toys sales results
were partially offset within the Other category by higher sales driven by
closeout deals of licensed kids underwear during the first half of the year. The
Seasonal category net sales produced positive results in the first half of the
year for lawn & garden and summer merchandise; however, the second half of
the year’s net sales underperformed due to lower comparable store sales for
Christmas, Halloween, and harvest. Because the Christmas selling season
represents a higher portion of the total year’s sales in this category, the
decline in Christmas merchandise sales drove the category sales lower for the
year.


These excerpts taken from the BIG 10-K filed Apr 1, 2008.
Disclosures about Segments of an Enterprise and Related Information. Prior period amounts presented have been reclassified to conform to the current year presentation.

     2007      2006      2005
(In thousands)
Consumables   $ 1,339,433 $ 1,317,095   $ 1,225,798
Home 783,047 842,974 785,352
Furniture 687,292 681,952 599,664
Hardlines 629,119 645,338 587,304
Seasonal 597,933 584,762 575,374
Other 619,478 670,927 656,413
       Net sales $ 4,656,302   $ 4,743,048 $ 4,429,905

The Consumables category includes the food, health and beauty, plastics, paper, and pet departments. The Home category includes the domestics, stationery, and home decorative departments. The Furniture category includes the upholstery, mattresses, ready-to-assemble, and case goods departments. Case goods consist of bedroom, dining room, and living room furniture. The Hardlines category includes the electronics, appliances, tools, and home maintenance departments. The Seasonal category includes the lawn & garden, Christmas, summer, and other holiday departments. The Other category includes the toy, jewelry, infant accessories, and apparel departments. Other also includes the results of certain large closeout deals that are typically acquired through our alternate product sourcing operations.

75


BIG LOTS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Disclosures
about Segments of an Enterprise and Related Information
. Prior period amounts presented have been reclassified to
conform to the current year presentation.



































































































     2007      2006      2005
(In
thousands)
Consumables   $ 1,339,433 $ 1,317,095   $ 1,225,798
Home 783,047 842,974 785,352
Furniture 687,292 681,952 599,664
Hardlines 629,119 645,338 587,304
Seasonal 597,933 584,762 575,374
Other 619,478 670,927 656,413
       Net sales $ 4,656,302   $ 4,743,048 $ 4,429,905


The Consumables category includes the
food, health and beauty, plastics, paper, and pet departments. The Home category
includes the domestics, stationery, and home decorative departments. The
Furniture category includes the upholstery, mattresses, ready-to-assemble, and
case goods departments. Case goods consist of bedroom, dining room, and living
room furniture. The Hardlines category includes the electronics, appliances,
tools, and home maintenance departments. The Seasonal category includes the lawn
& garden, Christmas, summer, and other holiday departments. The Other
category includes the toy, jewelry, infant accessories, and apparel departments.
Other also includes the results of certain large closeout deals that are
typically acquired through our alternate product sourcing operations.


75





BIG LOTS, INC. AND
SUBSIDIARIES


Notes to Consolidated Financial
Statements (Continued)


This excerpt taken from the BIG 10-K filed Apr 4, 2007.
Disclosures about Segments of an Enterprise and Related Information.

    Fiscal Year   
(in thousands)      2006       2005       2004 
Consumables  $1,369,590    $1,275,851 

$1,247,207 

Home  1,473,052  1,333,602  1,153,297 
Seasonal and toys.    840,416  830,526  814,661 
Other  1,059,990  989,926  934,087 
     Net sales  $4,743,048  $4,429,905  $4,149,252 

The Consumables category includes the food, health and beauty, plastics, paper, and pet departments. The Home category includes the furniture, domestics, and home decorative departments. The Seasonal and toys category includes the toys, lawn & garden, trim-a-tree, and various holiday-oriented departments. The Other category includes the electronics, basic apparel, home maintenance, small appliances, and tools departments.

"Disclosures about Segments of an Enterprise and Related Information" elsewhere:

Pantry (PTRY)
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