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COLUMBUS, Ohio — Big Lots Inc. on Friday said revenue declined in its second quarter on weakness in comparable-store sales. But the retailer raised its profit forecast for the full year.
The company posted income from continuing operations of $22.7 million, or 51 cents per diluted share, exceeding analysts’ expectations of 45 cents a share, according to a survey from Zacks Investment Research. Revenue of $1.2 billion was slightly below Wall Street forecasts of $1.22 billion.
Sales at stores open at least 15 months increased 0.3% in the period, a tepid increase that was offset by a smaller number of stores.
For the current quarter, Big Lots is forecasting earnings per share in the range of a 4-cent loss to a 1-cent gain.
For the current year, Big Lots now expects adjusted per-share earnings of $3.45 to $3.55, up from its previous forecast of between $3.35 and $3.50 a share. The company expects comparable-store sales to increase in the low single digits, reaffirming its earlier forecast.
Big Lots buys merchandise discounted as a result of liquidations, production overruns and packaging changes and sells it for less than traditional discounters.
Big Lots chief executive officer David Campisi said the company was pleased to report positive comps for the 10th consecutive quarter. He attributed the gains to the company’s strategic focus on “ownable and winnable merchandise categories, improved merchandise presentations and more in-store execution.”
Campisi initiated a turnaround plan at the retailer in 2013 after he succeeded retiring CEO Steven Fishman. The campaign to lure more customers into the company’s stores included a focus on expansion of the food selections, with the installation of coolers and freezers in stores to sell more items like milk and eggs
