Big Lots' 2Q Results Beat the Street, Raises Full Year Guidance
Shares of Big Lots Inc. (BIG) were trading up +4.00 or +9.52 percent to $46 per share in Friday's premarket after the company released better than expected results for its second quarter early this morning. Big Lots stock closed at $42.00 per share, up +1.01 or +2.46 percent in Thursday's regular trading session.
Founded in 1967 and based in Columbus, Ohio, Big Lots is the nation's largest retail chains specializing in selling brand name items acquired at a discount, and then passing on the savings to its customers.
Annual revenues for the company have grown to over $5 billion, with the retail discount chain expanding to 1,463 stores in 47 states. The chain receives goods from more than 3,000 manufacturers of brand name items that are distributed through five regional distributions centers with 9 million square feet of capacity.
For the company's second quarter ended on August 1st, Big Lots reported adjusted income from continuing operations of $20.4 million or $0.40 per share compared to $17.2 million or $0.32 in the same period one year ago. The $0.40 quarterly earnings excludes a non-recurring after tax expense of $2.7 million or $0.05 per diluted share due to a merchandise related legal contingency.
Net sales for the quarter increased +1.2 percent to $1.209.7 million as comparable store sales for stores opened at least 15 months increased +2.8 percent in the quarter, the sixth monthly consecutive increase. The analyst consensus was for the company to report earnings of $0.34 per share on revenue of $1.19 billion.
David Campisi, Chief Executive Officer and President of Big Lots, stated in the company's press release that, "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."
Big Lots updated their guidance for the full year, with expected income from continuing operations of between $2.90 and $3.00 per diluted share, which represents an 18 to 22 percent increase over full year 2014 results of $2.46 per diluted share. Big Lots had previously forecast full year guidance of $2.80 to $2.90 per diluted share.
The company also affirmed comparable store sales to increase in the low single digits and a cash flow of $175 million for 2015. In separate releases, Big Lots declared a $0.19 quarterly dividend to shareholders of record on September 11th due to be paid on September 25th; and the promotion of Lisa Bachman to Chief Merchandising and Operating Officer replacing Richard Chene.
Big Lots stock was up five percent for the year before this morning's earnings release. With this morning's nine percent gain, Big Lots stock is up almost fifteen percent for the year and could test its 52-week high of $51.75.
Other News About BIG
Big Lots Announces Executive Management Promotions To Support Long Term Strategic Plans
In addition to Lisa Bachman, two other senior executives will be promoted to support the company's long term strategy for enhancing shareholder value.
Big Lots Increases Online Presence To Connect With Hispanic Customers
Company launches "Big Lots Latino", a Spanish language information hub for Hispanic customers.
Other Stocks in the News
Mylan Investors Vote to Push Ahead With Hostile Perrigo Deal
Takeover wins two thirds of shareholder votes, with Perrigo tender to begin by September 14th.
Pentagon teams up with Apple, Boeing to develop wearable tech
Partnerships will develop sensory gear flexible enough to be worn by people or molded to the exterior of an aircraft.