Big Lots profit tops Street, raises 2008 profit view
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Tue, 26 Aug 2008 10:53:29 GMT |
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Reuters |
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US (Business) |
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(Reuters) - Close-out retailer Big Lots Inc reported an 11 percent rise in quarterly profit that beat market estimates, as shoppers headed to its stores for low prices on furniture, food and paper products, and raised its earnings forecast for the current financial year.Big Lots said profit rose to $26.0 million, or 32 cents per share, in its second quarter ended August 2 from $23.4 million, or 22 cents per share, a year earlier.Analysts on average had been expecting a profit of 27 cents a share, according to Reuters Estimates.Earlier this month, Big Lots said its second-quarter sales at stores open at least two years, or same-store sales, rose 2.8 percent, above an initial forecast for a gain of 1 percent to 2 percent.It also said retail sales in the quarter rose 1.9 percent to almost $1.1 billion, driven by demand for consumable items, seasonal goods like lawn and garden merchandise, and furniture.The retailer expects third-quarter same-store sales to rise 1 percent to 2 percent.It forecast third-quarter earnings per share of 15 cents to 19 cents from continuing operations, while analysts expect 17 cents a share, before special items.The company now sees fiscal 2008 earnings per share of $1.90 to $2.00 from continuing operations, up from an earlier view of $1.80 to $1.90. Analysts were looking for $1.90 a share, excluding items.Big Lots specializes in sales of excess inventory. As U.S. retailers face weak consumer demand, some have been canceling orders for new shipments, leaving manufacturers with excess merchandise that is then sold to retailers like Big Lots.The retailer has said the environment for finding products to sell in its stores is very good, helping to boost its results. Meanwhile, Chief Executive Steve Fishman, who took the helm of the retailer in mid-2005, has also been closing underperforming stores and adding more brand-name items, like Serta mattresses and Cuisinart appliances, to its stores.Shares of the Columbus, Ohio-based company closed at $33.06 Monday on the New York Stock Exchange.(Reporting by Anne Pallivathuckal in Bangalore; Editing by Himani Sarkar)
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