Big Lots Q2 Profit Beats Expectations

reported better-than-expected earnings for the second quarter on Friday. The Columbus, Ohio-based company reported quarterly net income of $17.64 million, or $0.34 per share, compared to $19.94 million, or $0.36 per share, in the year-ago quarter. On an adjusted basis, the company's income from continuing operations rose to $0.40 per share from $0.31 per share. Its net sales gained 1.2 percent year-over-year to $1.21 billion. However, analysts were expecting earnings of $0.34 per share on revenue of $1.20 billion. The average estimate among 8 Estimize users was for earnings of $0.35 per share and revenue of $1.2 billion. Its comparable store sales rose 2.8 percent for the quarter. The company ended the quarter with $821 million in inventory, versus $799 million at the end of year-ago quarter. David Campisi, Chief Executive Officer and President of Big Lots, said, "I'm pleased with our second quarter results. Despite unseasonable weather conditions, Q2 comps increased 2.8% reflecting strength in our winnable and ownable categories and improved consistency in all aspects of our operations. Jennifer continues to respond positively to our strategic improvements in merchandising, marketing, and in-store execution resulting in our sixth consecutive quarter of comp sales growth. Healthy comp sales growth and consistent execution across the business enabled us to exceed earnings expectations for Q2." For the third quarter, Big Lots projects a loss from continuing operations of $0.04 to income of $0.01 per share. The company also projects comparable store sales growth of 2 percent to 3 percent. Analysts projected Q3 earnings of $0.00 per share. For the fourth quarter, the company expects income from continuing operations of $1.95 to $2.00 per share, and comparable store sales growth of 1 percent to 2 percent. For the fiscal 2015, Big Lots projects adjusted income from continuing operations of $2.90 to $3.00 per share, versus earlier outlook of $2.80 to $2.90 per share. Big Lots shares gained 3.17 percent to $43.33 in after-hours trading.