Big Lots blames poor execution for Q1 miss
HTT Staff -- Home Textiles Today, 5/23/2012 12:23:59 PM
Columbus, Ohio - Closeout chain Big Lots Inc.'s produced below-guidance results in its first quarter as its consumables and electronics both took comp hits.
"The combination in the miss in consumables and the slowdown in electronics trends contributed to nearly three points of the comp miss to our original forecast, or said another way, the large majority of our miss," said Tim Johnson, svp, finance, during the 1,459-unit chain's earnings call this morning.
Chairman, president and ceo Steve Fishman said the challenges there "isolated to businesses that were more closeout in nature...We believe our execution was off...We don't believe competition or price was an issue..."
Home category comps were flat, but the business is poised for improvements in the future as the retailer expanded footage for the category prior to the end of the quarter.
Furniture and hard lines were the leaders during the quarter, said Fishman. Lawn and garden, Big Lots' single-largest seasonal business, "was good when and where the weather was good," he said.
For the quarter ended April 28, Big Lots income from continuing operations was $40.8 million, or 63 cents per diluted share. Excluding an after-tax charge, adjusted income from continuing operations fell 16% to $44.2 million, or 68 cents per share.
Sales for U.S. operations increased 2.8% to $1.26 billion and comps slipped 0.8% for the quarter.
Big Lots updated its fiscal year guidance and now expects adjusted income from continuing operations to range from $3.25 to $3.40 per share (non-GAAP) versus income from continuing operations of $2.99 per diluted share for fiscal 2011. U.S. comps are expected to be in a range of flat to 1% increase.
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