BIG stock is running higher after the company release a quarterly report that was not as bad as analysts expected.
Big Lots, Inc. (NYSE: BIG) today reported net income of $127.0 million, or $3.25 per diluted share, for the third quarter of fiscal 2019 ended November 2, 2019. This result includes an after-tax gain of $136.6 million, or $3.49 per diluted share, associated with the sale of the company’s distribution center in Rancho Cucamonga, California, as well as after-tax expense of $2.6 million, or $0.07 per diluted share, associated with the implementation of the company’s strategic business transformation. Excluding these items, the adjusted net loss was $7.0 million, or $0.18 per share (see non-GAAP table included later in this release), which compares to guidance of an adjusted net loss of $0.15 to $0.25 per share (non-GAAP). The net loss for the third quarter of fiscal 2018 was $6.6 million, or $0.16 per share.
Net sales for the third quarter of fiscal 2019 totaled $1,168 million, a 1.6% increase compared to $1,149 million for the same period last year, with the increase resulting from sales growth in high volume new and relocated non-comp stores, and a slightly higher store count year-over-year. Comparable sales decreased 0.1% for the third quarter of fiscal 2019, compared to guidance of approximately flat.
Commenting on today’s announcement, Bruce Thorn, President and CEO 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.”