Big Lots has Small Quarter

It was revealed on Wednesday that Big Lots

reported a lower-than-expected profit for the first quarter, falling some distance below Wall Street estimates for the current quarter. Income from continuing operations was reported at $40.8 million, or $0.63 per diluted share, for the first quarter of this fiscal year, ending April 28. That can partly be put down to an after-tax charge that the company incurred of $3.4 million, or $0.05 per share, during the first quarter. Take that out, and Big Lots brought in adjusted income of $44.2 million, or $0.68 per diluted share. Compare that to the previous year's $52.5 million, or $0.70 per diluted share. BIG saw net sales in the U.S. for 1Q increase 2.8% to $1,262.2 million, compared to $1,227.3 million last year. It is obviously a difficult time for Big Lots, as all retail outlets have to look towards new ways and means to attract customers as the purse strings are pulled tighter. Unfortunately, unlike the likes of Macy's

, Sears

, Big Lots doesn't have the "affordable glamor" factor that can pull people in during hard times. However, it is still a strong brand and consumers are aware that it is what it is - a no-frills place to buy affordable goods. It is the home-goods equivalent of Aldi. In the long-term, it should be ok.