Big Lots reports record EPS, looks to future
Staff Staff -- Home Textiles Today, August 26, 2008
Columbus, Ohio – After announcing its seventh consecutive quarter of record earnings per share results, Big Lots today also said it will begin working on a strategic plan to address the long-term business in 2009-2011.
Merchandising, real estate and cost structure will form “the cornerstone” of the effort, president and ceo Steve Fishman told analysts during this morning’s conference call to report second-quarter results.
Big Lots will re-examine its merchandise categories and will also consider a smaller store strategy. The retailer will test e-commerce later this year, particularly with brands and merchandise that might not fit its in-store environment, Fishman said.
He also pushed back against the suggestion that Big Lots’ shoppers consist entirely of low-income households. “Our results do not support this thesis at all,” he said, “and to suggest otherwise is not accurate or [it] is misinformation.”
The availability of opportunistic merchandise buys remains good overall, Fishman added. “In a challenged environment, vendors like to deal with a quality, investment grade companies that pay their bills on time,” he said.
Profit rose 11% to $26.1 million, or 32 cents per share for the quarter ended Aug. 2. Sales bumped up 1.9% to $1.1 billion. Comps climbed 2.8% on top of the 5.2% comp bounce in last year’s second quarter.
Although it warned back to school could be slack and holiday could get off to a slow start, Big Lots today raised its guidance for full fiscal year earnings to $1.90 to $2 per share.