Big Lots profit up in first quarter

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Big Lots profit up in first quarter
Retailer cautious but raises earnings outlook for 2009
Thursday, May 28, 2009 11:33 AM
By Tim Feran

THE COLUMBUS DISPATCH
Big Lots today reported a drop in sales but an increase in profit for the first quarter. It raised its earnings outlook for the year.

The company's stock was down about 2.7 percent in late-morning trading.

Big Lots reported income of $36.2 million, or 44 cents per share, on sales of $1.14 billion during the first quarter. A year ago in the same quarter, the company reported a profit of $34.5 million, or 42 cents per share, on sales of $1.15 billion.

Analysts had expected earnings per share of 40 cents, according to data compiled by FactSet.

"We remained focused on our own strategy," CEO Steve Fishman told analysts during a conference call. "Our seasonal (merchandise sales) was encouraging during March and April. Our home business is still not great, but some parts are starting to post positive results. It's all about the deal, the quality and the value."

But although the Columbus-based closeout retailer is mildly optimistic about the coming year, it took a conservative view of the coming quarter.

Big Lots upped its prediction for its 2009 income to between $1.85 to $1.95 per share from a previous prediction of $1.75 to $1.90 per share. Last year's income was $1.89 per share.

However, the company predicts comparable-store sales will decrease in the second quarter.