Discount retailer outperforms in Q2

Big Lots topped Street estimates in its second quarter as shoppers continue to seek out bargains.



Net income rose 28.2 % to $29.1 million, or $0.67 per diluted share, in the quarter ended July 29, 2017, from adjusted income of $23.4 million, or $0.52 per diluted share, in the year-ago period. Analysts had expected the company to earn $0.62 per share



Big Lot's net sales increased 1.5% to a better-than-expected $1.2 billion, which was partially impacted by a lower store count year-over-year. Same-store sales edged up 1.8%.



"Our strategy is working as evidenced by our comps in ownable categories and our consistency of delivering growth in operating profit dollars and EPS," stated Big Lots CEO David Campisi. "We are controlling what we can control and our teams are energized and excited as our new fall merchandise has begun to arrive in stores."



Furniture, seasonal and soft home are among Big Lots “ownable” categories, and the retailer has been working on a new format, or "store of the future," to better showcase them. On the chain's quarterly call, executives said the company will offer tours of its store of the future at its investor conference (in Columbus, Ohio) in September.



Big Lots increased its guidance for fiscal 2017 income to be in the range of $4.15 to $4.25 per diluted share, compared to its prior guidance of $4.05 to $4.20 per diluted share.



Big Lots operates 1,428 stores in 47 states.