Big Lots (NYSE: BIG) reported its third quarter financial results before the opening bell on Friday. The retailer surpassed analysts’ estimates, sending shares 30% higher.
For the quarter, Big Lots reported earnings loss of USD 0.18 per share on revenue of USD 1.16 Billion. Analysts expected earnings loss of USD 0.20 per share on revenue of USD 1.16 Billion.
The Company reported that revenue during the quarter improved by 1.6% compared to USD 1.14 Billion the same quarter a year ago. Big Lots highlighted that the higher revenue was a result from sales growth in high volume new and relocated non-comp stores, and a slightly higher store count year-over-year.
Comparable sales during the quarter decreased 0.1% compared to the Company’s previous guidance of approximately flat.
Bruce Thorn, President and Chief Executive Officer of Big Lots stated, "We are pleased to have delivered operating results in line with our guidance, while strengthening our balance sheet with the proceeds from the sale of our California distribution center. I'm also highly encouraged by the progress we are making on our transformational strategies, as part of Operation North Star, to drive profitable long-term growth and deliver value to our shareholders. After a year of restructuring and transition in 2019, and despite the ongoing impact of tariffs, we expect to return to EBIT and EPS growth in 2020, including significant improvement in normalized free cash flow."
For the fourth quarter, Big Lots is expecting earnings between USD 2.40 to USD 2.55 per diluted share, compared to earnings of USD 2.68 per share a year ago. The Company also mentioned that it expects its comparable sales to grow slightly.
And as for the remainder of the fiscal year, Big Lots said it is maintaining its guidance for earnings between USD 3.70 to USD 3.85 per diluted share.