Big Lots Reports Solid Q3 Earnings In 'Challenging' Environment

Discount retailer Big Lots, Inc. (NYSE: BIG) reported mixed results for its third quarter in a challenging retail industry scenario. The company’s earnings beat Street view, while sales fell short of consensus.

Quick Quarterly Highlights

• EPS: $0.04 vs. estimated $(0.01).
• Revenue: $1.105 billion vs. estimated $1.12 billion.
• Comparable store sales: flat vs. guidance range between flat and up 2 percent.
• Q4 EPS guidance came in line with a range of $2.18–$2.23 vs. the estimated $2.21.
• Full-year EPS increased to $3.55–$3.60 from $3.45–$3.55 vs. the estimated $3.53.
• Full-year comps growth outlook affirmed at 1–2 percent.

Analyst, Management Commentary

Barclays analyst Karen Short recently pointed out that Big Lots has been relatively immune to factors hurting the industry, such as food price deflation and an intensely competitive environment. This competitive atmosphere is most evident in food and consumables, as these categories are just about 35 percent of its mix.

"We are pleased to report in a challenging retail environment the team delivered upon our financial commitments,” David Campisi, CEO and president, said in a press release.

Shares of Big Lots closed Thursday’s trading at $50.77. In the pre-market hours Friday, they gained 1.44 percent to $51.50.

Image Credit: By Mike Kalasnik from Fort Mill, USA [CC BY-SA 2.0], via Wikimedia Commons