It was revealed on Wednesday that Big Lots (NYSE:
) reported a lower-than-expected profit for the first quarter,
falling some distance below Wall Street estimates for the current
Income from continuing operations was reported at $40.8
million, or $0.63 per diluted share, for the first quarter of
this fiscal year, ending April 28.
That can partly be put down to an after-tax charge that the
company incurred of $3.4 million, or $0.05 per share, during the
first quarter. Take that out, and Big Lots brought in adjusted
income of $44.2 million, or $0.68 per diluted share. Compare that
to the previous year's $52.5 million, or $0.70 per diluted
BIG saw net sales in the U.S. for 1Q increase 2.8% to $1,262.2
million, compared to $1,227.3 million last year.
It is obviously a difficult time for Big Lots, as all retail
outlets have to look towards new ways and means to attract
customers as the purse strings are pulled tighter. Unfortunately,
unlike the likes of Macy's (NYSE:
), Sears (NASDAQ: SHLD and Target (NYSE:
), Big Lots doesn't have the "affordable glamor" factor that can
pull people in during hard times.
However, it is still a strong brand and consumers are aware
that it is what it is - a no-frills place to buy affordable
goods. It is the home-goods equivalent of Aldi. In the long-term,
it should be ok.
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