WASHINGTON (dpa-AFX) - Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent.
For the second quarter, Ohio-based retailer recorded net profit of $17.64 million, down from $19.94 million in the prior year. Earnings per share were down to $0.34, from $0.36 last year.
The results reflect an impact of $0.05 per share from the non-recurring merchandise-related legal contingency expense.
On an adjusted basis, excluding this non-recurring expense, earnings per share from continuing operations was $20.4 million or $0.40 per share. On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.34 per share. Analysts estimates usually exclude special items.
Comparable store sales for the quarter increased 2.8 percent. Net sales for the second quarter was up 1.2 percent to $1.209 billion from $1.195 billion a year ago. The Wall Street was looking for $1.20 billion.
Looking ahead to the third quarter, the company expects results from continuing operations to range between a loss of $0.04 and a profit of $0.01 per share. This compares to last year's loss from continuing operations of $0.06 per share. The Street currently expects break-even per share for the next quarter. Comparable store sales growth for the third quarter is expected in the range of 2 to 3 percent.
For the fourth quarter, Big Lots projects income per share from continuing operations of $1.95 to $2.00 and comparable store sales growth of 1 to 2 percent. This compares to last year's income from continuing operations of $1.76 per share.
For fiscal 2015, the company expects adjusted income from continuing operations to be in the range of $2.90 to $3.00 per share, up 18 to 22 percent from prior year's $2.46 per share. On a continuing operations basis, Big Lots projects earnings per share of $2.85 to $2.95. The retailer reaffirmed comparable store sales in the range of a low single digit increase for fiscal 2015. The street projects earnings per share of
Separately, the company declared a cash dividend of $0.19, to shareholders on record of September 11, payable on September 25.
In addition, the company said it promoted Lisa Bachmann to executive vice president-chief merchandising and operating officer and Timothy Johnson to executive vice president-chief administrative office and chief financial officer. Michael Schlonsky was promoted to executive vice president-human resources and store operations. Meanwhile, Richard Chene, former executive vice president and chief merchandising officer left the company on August 27.
On Thursday, the company closed its trading at $42 on a volume of 1.86 million shares.
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