Big Lots 1Q adj. profit meets Wall Street's view

Big Lots 1Q adj. profit meets Wall Street's view, cuts full-year revenue forecast

Associated Press

COLUMBUS, Ohio (AP) -- Big Lots' first-quarter net income fell 21 percent, but the discount retailer met Wall Street expectations when one-time charges are removed.

The company lowered its full-year revenue forecast, however, citing its first-quarter performance, which also fell just shy of most projections.

Big Lots earned $32.3 million, or 56 cents per share, for the period ended May 4. That compares with $40.7 million, or 63 cents per share, a year earlier.

Removing a charge of 6 cents per share, earnings from continuing operations were 61 cents per share.

Revenue increased 2 percent to $1.31 billion from $1.29 billion, led by higher sales in Canada. The U.S. posted a slight sales gain.

Wall Street forecast $1.32 billion in revenue.

Revenue at stores open at least a year declined 2.5 percent. Analysts pay close attention to that number as an indicator of a retailer's health because it strips away the volatility from stores recently opened or closed.

Big Lots anticipates full-year adjusted earnings from continuing operations between $2.87 and $3.12 per share. Its previous outlook was for earnings of $3.05 to $3.25 per share. Revenue is now expected to rise 1 percent to 2 percent. The company's prior guidance was for a 2 percent to 3 percent increase. Based on 2012's $5.4 billion, the revised forecast implies about $5.46 billion to $5.51 billion.

Analysts predict earnings of $3.16 per share on revenue of $5.49 billion.

For the second quarter, the Columbus, Ohio, company foresees earnings in a range of 17 to 27 cents per share. Revenue is forecast to be up or down by 1 percent. Based on the prior-year period's $1.22 billion, that implies approximately $1.21 billion to $1.23 billion.

Wall Street is looking for earnings of 43 cents per share on revenue of $1.26 billion.

Big Lots Inc. had 1,505 of its namesake stores in the 48 states, one store in Canada, and 79 Liquidation World and LW stores in Canada at quarter's end.

View Comments (0)