May 30, 2014
Exiting Canada may have taken a bite out of Big Lots’ profits in the first quarter, but the company still saw net and comparable store sales increase.
Net sales for the quarter increased 1.1% to $1.28 billion, compared to net sales from continuing U.S. operations of $1.26 billion for the same period last year. Comparable-store sales for stores open at least 15 months increased 0.9% for the quarter.
Net loss from discontinued Canadian operations for the quarter totaled $25.2 million, or $0.44 per diluted share, compared to the company’s guidance of a net loss of $37 to $41 million, or $0.64 to $0.71 per diluted share. The lower-than-expected loss resulted from incremental deferred tax benefits and favorable settlements on lease terminations associated with store and distribution center operating leases.
Looking ahead to the second quarter, the company estimates that income from continuing operations will be in the range of $0.24 to $0.30 per diluted share, compared to adjusted income from continuing U.S. operations of $0.37 per diluted share the second quarter last year. This guidance is based on an estimated comparable-store sales increase of between 1% and 3%.
Big Lots operates 1,496 Big Lots stores in 48 states.
Source: Retailing Today
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