GAAP net income was $6.2 million, or $0.16 per share, compared to $24.2 million, or $0.59 per share last year. The results include after-tax charges of $14.5 million, or $0.37 per share, related to the implementation of the company’s strategic business transformation. Adjusted net income was $20.6 million, or $0.53 per share.
Bruce Thorn, President and CEO said, “We are pleased with our performance for the second quarter, which was in line with our sales guidance and ahead on earnings. Going forward, despite the current tariff headwinds, we are confident we will be able to navigate through this environment to deliver a good outcome for 2019.”
Also see: Big Lots Q2 2019 Earnings Preview
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Inventory increased 2% year-over-year to $874 million as a
result of moving forward inventory commitments to support assortment resets in
the Furniture and Soft Home categories, and slower sell-through of seasonally
sensitive products due to weather.
For the third quarter of 2019, the company expects adjusted loss
of $0.15-0.25 per share. Comparable store sales are expected to remain approx. flat.
For fiscal year 2019, adjusted EPS is expected to be $3.70-3.85. Comparable store
sales is expected to be flat to slightly positive.
Big Lots ended the second quarter with $54 million of cash and cash equivalents and $468 million of borrowings under its credit facility.
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