Big Lots Earnings Jump 37%

Before you go, we thought you'd like these...
Before you go close icon
Big Lots (BIG) on Tuesday reported second-quarterearnings that rose 37%, helped by lower markdowns, and beat Wall Street estimates. The retailer also raised 2010 earnings for the second time.

The closeout retailer, which sells everything from furniture to clothes at a discount, said that for its fiscal second quarter that ended July 31, net profit rose to $38.9 million, or 48 cents a share, from $28.4 million, or 34 cents a share, a year earlier. Analysts estimated earnings of 47 cents a share, according to Thomson Reuters.

Revenue grew 5.1% from $1.09 billion to $1.14 billion, matching analyst estimates. Comparable store sales were up 3.8%. Big Lots also said its gross margin improved by half a percentage point, helped by lower markdowns and a favorable merchandise mix impact, which more than offset rising freight costs.

Big Lots said it now expects fiscal 2010 comparable store sales in the range of 3.5% to 4.5%. This translates into expected income from continuing operations of between $2.82 and $2.90 a share for the fiscal year, compared to its previous guidance of $2.75 to $2.85 a share. Analysts had been forecasting annual earnings of $2.85 a share.

Big Lots' shares rose nearly 38% over the past year, and 9.5% year-to-date, beating the broad market index.
Read Full Story

Markets

S&P 500 2,191.95 0.87 0.04%
DJIA 19,170.42 -21.51 -0.11%
NASDAQ 5,255.65 4.55 0.09%
DAX 10,513.35 -20.70 -0.20%
HANG SENG 22,564.82 -313.41 -1.37%
NIKKEI 225 18,426.08 -87.04 -0.47%
USD (per EUR) 1.05 -0.01 -1.16%
USD (per CHF) 1.02 0.01 0.54%
JPY (per USD) 113.11 -0.36 -0.32%
GBP (per USD) 1.26 -0.01 -0.71%

From Our Partners