DOW JONES NEWSWIRES
Big Lots Inc.'s (BIG) fiscal fourth-quarter net income fell 14%
on a loss from discontinued operations and weaker sales.
The discount retailer also projected earnings for the new year
above analysts' estimates, $1.75 to $1.90 a share, with same-store
sales down as much as 2%. Analysts polled by Thomson Reuters
expected earnings of $1.74 a share.
For the first quarter, the company forecast earnings of 34 cents
to 40 cents and same-store sales falling 1% to 3%. Analysts on
average anticipated a 35-cent profit.
Discounters have been seeing fewer impacts from the
consumer-spending cutbacks as people looking to tighten their belts
trade down in a hunt for cheaper prices.
Since the fiscal fourth quarter typically generates more than
half of Big Lots' annual earnings because of holiday sales,
analysts feared the company's warnings about a weak holiday season
in November and December signaled continued trouble.
For the period ended Jan. 31, Big Lots posted net income of
$78.8 million, or 96 cents a share, down from $92 million, or $1.04
a share, a year earlier. The latest results included a $3 million
loss from discontinued operations, while last year's included a
$6.4 million profit. The company in December lowered its forecast
to 90 cents to 99 cents.
Big Lots reported revenue decreased to $1.37 billion from $1.41
billion, while sales at stores open at least two years at the
beginning of the fiscal year fell 3.2%, in line with its December
estimate.
The company - which helps manufacturers clear their warehouses
of discontinued, overproduced and otherwise unwanted goods - said
Wednesday that gross margin rose to 40.4% from 39.7% on higher
prices and lower freight costs. Average per-store inventories were
flat.
Big Lots' shares closed Tuesday at $14.54 and haven't traded
premarket. The stock is up 0.4% so far this year, handily beating
the broader market.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com