Big Lots Q2 higher than expected

COLUMBUS, Ohio Big Lots reported better-than-expected second quarter fiscal 2009 income from continuing operations of $28.6 million, or 35 cents per diluted share, compared with income from continuing operations of $26.1 million, or 32 cents per diluted share, in second quarter fiscal 2008. Including the impact of discontinued operations, second quarter fiscal 2009 net income totaled $28.4 million, or $0.34 per diluted share, compared with $26.0 million, or $0.32 per diluted share, in the prior year.

Net sales for second quarter fiscal 2009 decreased 1.7% to $1.08 billion, compared with $1.1 billion for the same period in fiscal 2008. Comparable-store sales for stores open at least two years at the beginning of the fiscal year decreased 2.4% for the quarter.

For fourth quarter fiscal 2009, the company anticipates comparable store sales will be in a range of flat to slightly up. The earnings are estimated to be in the range of 99 cents  to $1.04 per diluted share, compared with income from continuing operations for fourth quarter fiscal 2008 of $1.00 per diluted share.

Based on the strength of second quarter operating results and reaffirming the view of EPS for second half fiscal 2009, the company raised the fiscal 2009 guidance for income from continuing operations. The company anticipates fiscal 2009 income from continuing operations will be $1.92 to $2.02 per diluted share compared with income from continuing operations of $1.89 per diluted share for fiscal 2008. Additionally, based on the performance of the first two quarters fiscal 2009, the company is raising the annual cash flow guidance to $155 million from $145 million.