The Chief Retail Analyst of the NPD group Marshal Cohen on how retailers are affected by the coronavirus, especially misses over the season of shopping back to school.
Big Lots Inc. reported second-quarter record results as retailers followed discounts on retailers’ stores and websites during COVID-19.
The Columbus, Ohio-based retailer said sales in the three months to June rose 31% year-over-year to $ 1.64 billion, surpassing the $ 1.61 billion that Wall Street analysts surveyed by Refintiv expected.
Big Lots earned $ 452 million, or $ 11.29 per share, including a one-time after-tax benefit of $ 341.9 million, or $ 8.54 per share, related to the sale of distribution centers through a leaseback deal.
If the benefit was exclusive, adjusted earnings were $ 2.75 per share, above the $ 2.70 expected.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| GREAT | BIG LOTS INC. | 52.42 | -3.28 | -5.89% |
“I am pleased with our record results,” CEO Bruce Thorn said in a statement. “Adjusted earnings per share were the most we reported in a second quarter, and more than five times what we reported a year ago.”
Comparable sales, when those in stores open for at least 12 months, climbed 31%, and were strong both in-store and online, adding nearly 5 percentage points. The company brought in the most new online customers of every quarter in its history.
‘ZOMBIE DECLARATIONS’ JUMP IN ALL STATES
Strong sales in all categories and a slightly lower store count reduced inventory by 18% from last year to $ 714 million.
Cash on hand amounted to $ 899 million against $ 43 million in debt, compared to $ 54 million in cash and $ 468 million in debt a year earlier.
Big Lots withdrew its financial guidance in March and expects to deliver an update in September.
The company’s board of directors on Thursday introduced a new $ 500 million share plan for shares.
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Shares were up 94% this year through Thursday, above the 7.85% gain of the S&P 500.
