Big Lots Reports Unexpected Revenue Decline But Raises Outlook
December 02 2016 - 7:30AM
Dow Jones News
Big Lots Inc. on Friday reported flat comparable-store sales and
an unexpected revenue decline in its third quarter but raised its
profit forecast for the year.
The Ohio-based company buys a range of merchandise discounted as
a result of liquidations, production overruns and packaging changes
and sells it at significantly lower prices than traditional
discount retailers.
Sales at stores open at least 15 months were flat, on the low
end of the company's projected range of between flat and 2%.
Revenue fell as flat per-store growth and a smaller number of
stores hurt sales.
The results followed fellow discounters Dollar General Corp.,
which reported a 0.1% decline in same-store sales, and Dollar Tree
Inc.,which reported a 1.7% increase in comparable sales.
For the current year, Big Lots now expects adjusted per-share
earnings of $3.55 to $3.60, up from its previous forecast of
between $3.45 and $3.55 a share. Analysts polled by Thomson Reuters
had expected earnings of $3.53. The company said it expects
comparable-store sales to increase between 1% and 2%, reaffirming
its previous guidance.
For the fourth quarter, the company estimates adjusted earnings
per share in the range of a $2.18 to $2.23. Analysts are expecting
a $2.21 profit. It expects comparable sales to be "flattish" to
2%.
In all for the quarter ended October 29, Big Lots reported a
profit of $1.4 million, or 3 cents a share, up from a loss of $1.5
million, or 3 cents a share, a year prior.
Excluding some charges, Big Lots posted an adjusted profit of 4
cents a share.
Revenue fell 1% to $1.11 billion. Analysts had expected revenue
of $1.12 billion and loss of 1 cent per share.
Gross margin increased to 40% from 39.4%.
Shares in the company, up 1.8% over the past three months, were
inactive premarket.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 02, 2016 07:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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