Big Lots, Inc. (NYSE: BIG) today reported net income of $452.0 million, or $11.29 per diluted share, for the second quarter of fiscal 2020 ended August 1, 2020. This result includes a one-time, after-tax benefit of $341.9 million, or $8.54 per diluted share, associated with the distribution centers sold as part of the previously announced sale/leaseback transactions that closed during the quarter. Excluding this benefit, adjusted net income was $110.1 million, or $2.75 per diluted share (see non-GAAP table included later in this release), which compares to the company’s guidance for the second quarter, as provided on June 26, 2020, of $2.50 to $2.75 per diluted share (non-GAAP). Adjusted net income includes approximately $10 million of additional store, distribution center, and corporate bonus expense that was not contemplated in the company’s June 26 guidance. Adjusted net income for the second quarter of fiscal 2019 was $20.6 million, or $0.53 per diluted share (non-GAAP).
Net sales for the second quarter of fiscal 2020 totaled $1,644 million, a 31.3% increase compared to $1,252 million for the same period last year, with the growth resulting from a 31.3% increase in comparable sales, and sales growth from new and relocated non-comp stores, offset by a slightly lower store count year-over-year.
Commenting on today’s announcement, Bruce Thorn, President and CEO of Big Lots stated, “I am delighted with our record-breaking results in Q2. Our comp increase was the best in the company’s history, and adjusted EPS was the most we’ve reported in a second quarter, and more than five times what we reported a year ago. Comp 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.
I continue to be very proud of how our team has responded to the challenges over the past six months. The results in Q2 were made possible by exceptional teamwork across the entire organization, and I want to thank our associates in our stores, the distribution centers, and our corporate headquarters for their dedication, compassion and tireless efforts. Throughout, we have maintained our commitment to serving our customers and our communities in as safe and healthy environment as possible.”
Thorn continued, “Looking forward, the third quarter is off to a strong start and I am confident that our Operation North Star strategies will continue to drive top line growth, increase customer engagement, and deliver tremendous leverage in our business. With our assortment of everyday essentials and stay-at-home products, we are well positioned for what appears to be a new normal. Our balanced offering of thoughtfully curated merchandise, neverouts, and closeouts, differentiates us from the competition and continues to surprise and delight our customers with tremendous value. Our operating results under Operation North Star, along with our commitment to disciplined capital management, position us to continue driving significant shareholder value.”
Company Outlook
As of March 30, 2020, the company withdrew its full year guidance for fiscal 2020. At this point, the company continues to believe it does not have sufficient visibility to reinstate full year guidance. The company expects to provide a business update at the end of September when it has greater visibility on expected results for the current quarter.
