GCO - Why Big Lots Genesco and Johnson Outdoors Jumped Today
Major benchmarks soared on Friday, lifted by positive sentiment that came from a strong employment report. The U.S. economy created 266,000 jobs in November, which was considerably higher than most economists had expected to see. Given the importance of strong wages to the consumer goods economy, retailers were especially pleased about the news, and several retail earnings reports also created optimism in the sector. Big Lots (NYSE: BIG), Genesco (NYSE: GCO), and Johnson Outdoors (NASDAQ: JOUT) were among the top performers. Here's why they did so well.
Shares of Big Lots soared 32% after the discount retailer reported third-quarter financial results that were better than most had expected to see. Not all of the numbers looked all that great for Big Lots, as revenue was up just 1.6% from the year-ago quarter, and comparable sales were actually down 0.1% year over year. The company also lost money, but the losses were on the better end of its previously provided range of guidance. Many investors took the news as a sign that the discount retail chain has finally started to turn the corner after a tough period that has seen the stock lose more than half its value since early 2018. Shareholders will be watching closely to see if remodeled stores and other initiatives help Big Lots during the key holiday season.
Image source: Big Lots.