Big Lots stock surges despite ongoing pressure on low income shoppers

Big Lots stock surged 28% after reporting a smaller-than-expected quarterly loss, but warned of "significant pressure" on low-income shoppers who are holding back on higher-ticket purchases due to economic concerns. The retailer's comparable sales declined 14.6% in Q2, better than expected, and it expects a mid-teens percentage decline in comp sales for the current quarter. Big Lots is not providing full-year guidance but anticipates gross margins to increase by around 200 basis points. The company aims to capitalize on distressed inventory and serve customers affected by the closure of similar retailers like Bed Bath and Beyond.