Big Lots, Inc., a Ohio-based discount retailer, announced on Friday a 20 per cent rise in profit for the first quarter of 2016, which was driven by a 2.3 per cent increase in the top line and aided by the company’s comparable store sales increasing by 3 per cent.
The company delivered $38.66 million in net income for Q1, from $32.21 million, while earnings soared 31.67 per cent to $0.79 a share from the previous year’s $0.60 per share in the same quarter. Not including adjustments, Big Lots would have delivered a $39.9 million income from continuing operations, priced at $0.82 a share, compared to $33 million or $0.61 per share in the same quarter last year.
Its sales rose 2.34 per cent to $1.31 billion from $1.28 billion in the previous years quarter. Analysts predicted $1.3 billion in revenue for the company.
“I’m very pleased with our first quarter and we’re at the high end of our guidance range. Jennifer continues to respond positively to our strategic focus on ownable and winnable merchandise categories, improved merchandise presentations and more consistent in-store execution,” Big Lots’s president and chief executive officer David Campisi said regarding the results.
Meanwhile, the discount retailer also provided a soft outlook for the second quarter and offered a positive forecast for the company’s full year performance. The results and full year guidance were both higher than Wall Street analysts’ expectations.
Big Lots, in addition, announced that the company is expecting Q2 adjusted income from continuing operations falling within the range of $0.42 up to $0.47 per share. The Ohio-based company, meanwhile, is expected to report earnings of $0.45 per share for the second quarter, based on a poll by Thomson Reuters involving analysts, who excluded exceptional items when issuing estimates. The company also outlined guidance of comparable store sales rising by 2 per cent.
Looking ahead, Big Lots lifted fiscal 2016 adjusted income from continuing operations in the range of $3.35 up to $3.50 per share, which represents a 11 to 16 per cent rise over 2016’s adjusted EPS of $3.01. The retail store also affirmed its comparable store sales growth for the full year and is looking forward to $200 million in cash flow.
Big Lots also announced that its board of directors declared a quarterly cash dividend of $0.21 per common share, payable on 24 June 2016, to shareholders on record as of the close of the business on 10 June 2016.