Big Lots' big jump
COLUMBUS, Ohio — Big Lots Inc. reported big gains for its second quarter with net income at $22.7 million, up 28.8% over the $17.6 million for the same quarter in 2015.
Earnings per share for the quarter, adjusted to exclude an after-tax expense associated with the retailer’s terminated legacy pension plans, rose from 41 cents per share last year to 52 cents per share for the quarter ended July 30, a 27% gain and up significantly from the company’s guidance of 42-47 cents per diluted share.
Comparable store sales increase 0.3% for the quarter, on track with Big Lots guidance of a flat to 2% increase for the period. In addition, net sales for the second quarter of fiscal 2016 decreased 0.5% to $1.2 million, which the company said was offset by a lower store count compared to last year.
"We are pleased to report comps increased for the 10th consecutive quarter, and our earnings were above the high end of our guidance range, increasing 27% over Q2 last year,” said David Campisi, CEO and president, in a statement.
Inventory levels came in at $809 million for the second quarter, down from $821 million for the same period last year, which the company called “essentially flat” when combined with the lower store count year over year.
Looking toward the third quarter, Big Lots provides an initial guidance for continuing operations of an adjusted loss of 4 cents per share. The guidance is based on estimated comparable stores sales in the range of flat to a gain of 2%, compared to a 2.6% comparable store sales increase for the 2015 period.
Source from: www.furnituretoday.com/article/534760-big-lots-q2-net-income-nearly-29