Big Lots raises FY outlook after strong 2Q

COLUMBUS, Ohio Big Lots Inc. today reported second quarter fiscal 2007 income from continuing operations of $22.1 million, or 21 cents per diluted share, compared to income from continuing operations of $4.7 million, or 4 cents per diluted share, in the second quarter of fiscal 2006. Including the impact of discontinued operations, second quarter fiscal 2007 net income totaled $23.4 million, or 22 cents per diluted share, compared to $4.3 million, or 4 cents per diluted share, in the prior year.

For the year-to-date period ended Aug. 4, income from continuing operations totaled $51.2 million, or 47 cents per diluted share, compared to income from continuing operations of $19.2 million, or 17 cents per diluted share, for the same period in fiscal 2006. Including the impact of discontinued operations, year to date fiscal 2007 net income totaled $52.1 million, or 48 cents per diluted share, compared to $18 million, or 16 cents per diluted share, in the prior year.

Net sales for the second quarter increased 2.7% to $1.08 billion, compared to $1.06 billion for the same period in fiscal 2006. Comparable-store sales for stores open at least two years at the beginning of the fiscal year increased 5.2% for the quarter on top of a 5.2% comparable-store sales increase in the second quarter of fiscal 2006.

For the third quarter of fiscal 2007, the company's guidance calls for a 1% to 3% comparable-store sales increase compared to a 5.8% comparable-store sales increase for the third quarter of fiscal 2006. Based on this level of sales performance, the company's earnings are estimated to be in the range of 9 cents to 13 cents per diluted share, compared to income from continuing operations for the third quarter of fiscal 2006 of 2 cents per diluted share.

For the fourth quarter of fiscal 2007, the company's guidance calls for a 1% to 3% comparable-store sales increase compared to a 4.9% comparable-store sales increase recorded last year. Based on this level of sales performance, the company's earnings are estimated to be in the range of 87 cents to 92 cents per diluted share, compared to income from continuing operations for the fourth quarter of fiscal 2006 of 83 cents per diluted share.

Given the strength of the second quarter operating results and current trends in the business, the company raised its fiscal 2007 guidance for earnings and cash flow. The company now anticipates fiscal 2007 income from continuing operations of $1.43 to $1.48 per diluted share, an increase of 42% to 47% compared to income from continuing operations of $1.01 per diluted share for fiscal 2006.