Big Lots Soar as Q3 Numbers Out

Big Lots, Inc. (NYSE:BIG) shares enjoyed big gains Friday on third-quarter numbers.

The Columbus, Ohio-based company reported net income of $127.0 million, or $3.25 per diluted share.

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, 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.

CEO Bruce Thorn,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.

“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."

BIG shares took on $4.23, or 22.1%, to $23.39