Broadline closeout retailer Big Lots, Inc. (BIG) reported Wednesday a better-than expected profit for its fourth quarter, despite a decline in comparable store sales and margin pressure. Topline improved from last year, and came in line with Wall Street analysts' estimates. Looking ahead, the company projects first-quarter earnings below analysts' current estimates.
In its fourth quarter, net income increased to $120.28 million from last year's $114.72 million. Earnings per share climbed 19 percent to $2.09 from $1.75 a year ago.
On average, 16 analysts polled by Thomson Reuters expected earnings of $1.98 per share for the quarter. Analysts' estimates typically exclude one-time items.
The latest quarter was benefited from an extra week of results due to the retail calendar shift, resulting in $0.05 per share increase in earnings.
Income from U.S. operations climbed from last year, while Canadian operations posted its first profitable quarter since acquisition in July 2011.
The Columbus, Ohio-based company's net sales improved 5 percent to $1.75 billion. Analysts also estimated revenues of $1.75 billion for the quarter.
Net sales for U.S. operations increased 4.4 percent, while comparable-store sales for U.S. stores open at least fifteen months slid 3.5 percent. Net sales for Canadian operations also improved.
The company's gross margin increased 3.5 percent, while gross margin as a percentage of net sales declined to 39.6 percent from prior year's 40.2 percent. Operating margin also fell to 11.2 percent from 11.4 percent in the prior year. For fiscal 2012, net income declined to $177.12 million or $2.93 per share from last year's $207.06 million or $2.98 per share. Adjusted income from continuing operations totaled $180.6 million or $2.99 per share. Total annual sales increased 3.8 percent to $5.40 billion
Looking ahead to the first quarter of fiscal 2013, Big Lots expects consolidated income from continuing operations in the range of $0.53 to $0.65 per share, compared to last year's adjusted income of $0.68 per share. Analysts project first-quarter earnings of $0.75 per share.
The forecast is based on an estimated comparable store sales decline in the range of 1 percent to 3 percent and a total sales increase in the range of 1 percent to 3 percent.
For fiscal 2013, the company projects income from continuing operations to be $3.05 to $3.25 per share, higher than the previous year's adjusted earnings. Analysts estimate earnings of $3.16 per share for the year.
The company also sees total consolidated company sales increase in the range of 2 percent to 3 percent and comparable store sales in the range of flat to 1 percent increase.
Big Lots shares closed Tuesday's trading at $33.89, up $1.10 or 3.35 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.