Big Lots 1Q Results Exceed Expectations, Offers Upbeat Full Year Forecast, Stock Up

Big Lots, Inc.

announced 20 percent increase in profit for the first quarter driven by 2.3 percent rise in the top line helped by its comparable store sales increase of three percent, which was partly offset by a lower store count. While providing soft outlook for the second quarter, the company offered upbeat forecast for the full year. Both the results and the full year guidance came in above the Street expectations. As a result, the stock traded 6.5 percent higher in the pre-market trading on Friday. Big Lots delivered net income of $38.66 million for the first quarter, up 20 percent from $32.21 million while earnings jumped 31.67 percent to $0.79 a share from $0.60 a share in the year-ago quarter. Excluding adjustments, it would have delivered income from continuing operations of $39.9 million or $0.82 a share, which was higher than $33.0 million or $0.61 a share in the same quarter last year. Street analysts estimated the retailer to earn $0.70 a share. Its sales grew 2.34 percent to $1.31 billion from $1.28 billion in the previous year quarter. Analysts predicted revenue of $1.3 billion. Its comparable store sales grew three percent. Commenting on the results, the company's CEO and President, David Campisi, stated, "I'm very pleased with our first quarter results. Q1 comps increased for the 9th consecutive quarter and were at the high end of our guidance range. Jennifer continues to respond positively to our strategic focus on ownable and winnable merchandise categories, improved merchandise presentations and more consistent in-store execution." Going forward, Big Lots expect adjusted income from continuing operations to be $0.42 - $0.47 a share for the second quarter. Street expects $0.45 a share. The company also guided comparable store sales increase of two percent. For the full year, the retailer sees adjusted income from continuing operations to be $3.35 - $3.50 a share representing 11 – 16 percent increase over the last year's adjusted EPS of $3.01. The company also affirmed its comparable store sales growth in the low single digit for the full year and expects $200 million cash flow. In the pre-market trading on Friday, shares of the company traded 6.5 percent higher.