Despite flat sales, Big Lots topped its third quarter profit outlook.
For the third quarter ended October 29, Big Lots posted income from continuing operations of $1.4 million, or three cents per diluted share, versus a net loss from continuing operations of $1.7 million, or three cents per diluted share, in the year-earlier period.
The result includes an after-tax expense of $500,000, or one cent per diluted share, associated with legacy pension plans that the company terminated. With the pension expense excluded, adjusted income from continuing operations totaled $1.9 million, or four cents per diluted share, versus $200,000, or zero per diluted share, in the year-previous quarter.
An analyst average estimate from Zacks Investment Research called for a two-cents per diluted share loss in the quarter.
Comparable store sales came in flat for the third quarter, Big Lots noted, while net sales decreased 1% to $1.11 billion in the year-prior period, with the retailer pointing to lower store count year-over-year for the revenue slip. Operating profit was $1.95 million versus an operating loss of $2.16 million in the year-before quarter.
David Campisi, Big Lots president and CEO, stated, “We are pleased to report in a challenging retail environment the team delivered upon our financial commitments. Sales were in line with our communicated guidance while EPS was above our expectations.”
Big Lots operates 1,445 stores in 47 states.
