Big Lots’ net sales jump 18% in the fiscal third quarter

Big Lots’ net sales jump 18% in the fiscal third quarter
Written by:
Wajeeh Khan
December 4, 2020
  • Big Lots’ net sales jump 18% in the fiscal third quarter.
  • The retailer reports £22.02 million of net income in Q3.
  • Big Lots' stock has recovered roughly 400% since March.

Big Lots Inc. (NYSE: BIG) reported its financial results for the fiscal third quarter on Friday that topped analysts’ estimates for net sales and profit. The retailer secured the number one spot on Total Retail’s 2020 top omnichannel retailers report in November.

Big Lots said that its net income in the quarter that concluded on 31st October came in at £22.02 million that translates to 56.15 pence per share. In comparison, its net income in the same quarter last year was reported at a much higher £93.82 million or £2.40 per share, on the back of a non-recurring tax benefit valued at £100.91 million.

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In the prior quarter (Q2), Big Lots had registered £338.62 million of net income amidst the COVID-19 crisis, as per the report published in the last week of August.

Big Lots’ Q3 financial results versus analysts’ estimates

Adjusted for one-time items, the retail company earned 56.15 pence per share in the recent quarter versus the year-ago figure of 13.30 pence of loss per share. FactSet Consensus of Big Lots’ adjusted per-share earnings in Q3 was stood at a lower 48.76 pence.

The Columbus-based company also said on Friday that its net sales saw an 18% year over year growth in the third quarter to £1.02 billion. According to FactSet, experts had forecast a lower £1.0 billion of net sales for Big Lots in the recent quarter.

Other prominent figures on Big Lots’ earnings report on Friday include a 17.8% annualised growth in comparable-store sales in Q3 versus a lower 15.3% expected. The retailer repurchased 2.2 million shares in the third quarter for £74 million.

CEO Bruce Thorn’s comments on Friday

CEO Bruce Thorn commented on Friday and said:

“Although we expect business to moderate given the elongated season, we are pleased with the strong start we have made to the fourth quarter.”

Big Lots opened a little under 10% down in the stock market on Friday. On a year to date basis, the company shares are now roughly 80% up after a close to 400% recovery since its low in March, when the ongoing Coronavirus pandemic pushed its stores into temporarily shutting down.  

Big Lots ended almost flat on average in the stock market last year. At the time of writing, it is valued at £1.53 billion and has a price to earnings ratio of 2.91.