Discount retailer Big Lots, Inc. (BIG) Friday reported an increase in income from continuing operations for the first quarter, from last year. The company also registered a surge in net income particularly as it had carried a loss from discontinued operations last year.
Net Sales for the quarter declined, while comparable sales for stores open at least fifteen months were up 1.6 percent. For fiscal 2015, the company affirmed its comparable-store-sales growth view of low single digit increase.
Separately, Big Lots announced a quarterly cash dividend of $0.19, payable on June 26, record June 12, 2015.
Income from continuing operations was $32.308 million or $0.61 per share, up from $28.581 million or $0.50 per share in the prior year. Net income for the 13- week period was significantly up at $32.213 million or $0.61 per share, compared to $3.348 million or $0.06 per share in the prior year. Last year, the company had posted a net loss of $25.233 million or $0.44 per share from discontinued operations.
On average, 17 analysts polled by Thomson Reuters expected the company to record $0.59 per share. Analysts estimates usually exclude special items.
The Columbus, Ohio-based company reported a slight decline in first quarter net sales to $1.280 billion from $1.281 billion a year ago. Street analysts were looking for $1.28 billion. Operating profit for the quarter was $52.645 million, compared to $47.185 million in the previous year.
David Campisi, chief executive officer and President of Big Lots said, "After a difficult start to the quarter and harsh weather conditions in February, sales trends improved in March and April. Our comps for Q1 were solidly in line with our guidance, and increased for a 5th consecutive quarter."
Looking ahead to the second quarter, Big Lots projects income from continuing operations of $0.31 to $0.35 per share. Wall Street expects $0.37 per share on a revenue of $1.20 billion. Comparable store sales are expected to grow in a range of 2 to 3 percent.
For the fiscal 2015, the company projects income from continuing operations in the range of $2.80 to $2.90 per share, up 14 to 18 percent from the previous year. Comparable-store-sales are affirmed for a low single digit increase. The Street expects $2.87 per share on revenue of $5.21 billion for the full year.
BIG closed on Thursday at $45.08 on a volume of 2.310 billion shares. In the pre-market trading Friday, the stock was gaining 3.81 percent or $1.72 to trade at $46.80 on the New York Stock Exchange.
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