Big Lots boosted as bargain retailer’s second quarter beats expectations

Discount retailer Big Lots Inc (NYSE:BIG) is evidently doing quite well in the economic downturn with its second-quarter beating market expectations. Earnings per share for the three months was reported at US$2.75 per share, versus forecasts for US$2.70. At US$1.64n net sales for the quarter were up 31% versus the same three months of 2019, beating expectations of 28% growth. The retailer said the growth was driven by new and relocated stores though the overall store-count was lower. Net income for the quarter was reported at US$452mln, or US$11.29 per share, boosted by a one-time US$341.9mln benefit following the sale of distribution centers. "I am delighted with our record-breaking results in Q2,” said chief executive Bruce Thorn. “Comparative sales were driven by strong results both in-store, where traffic and basket were each up double digits, and on-line, which drove almost five comp points, and where we acquired more new customers than in any prior quarter.” Thorn added: “Looking forward, the third quarter is off to a strong start.” It comes after the company announced authorization for a US$500mln stock-buy-back plan, starting September 1, and a 30 cents per share quarterly cash dividend, to be paid on September 25.