COLUMBUS, Ohio – Big Lots said comparable sales increased 31.3% in its second quarter ending Aug. 1. Sales were “up strongly” in stores and online, the company said.
Big Lots reported net income of $452 million, or $11.29 per diluted share, for the second quarter, a result that includes a one-time, after-tax benefit of $341.9 million 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. 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, the company said.
The net sales increase for the second quarter was sparked by comparable sales growth and sales growth from new and relocated non-comp stores, offset by a slightly lower store count year-over-year.
“I am delighted with our record-breaking results in Q2,” said Bruce Thorn, president and CEO of Big Lots. “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 online, 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,” he continued. “The results in Q2 were made possible by exceptional teamwork across the entire organization. Throughout, we have maintained our commitment to serving our customers and our communities in as safe and healthy environment as possible.”
Thorn said the company’s third quarter “is off to a strong start.” With the company’s assortment of everyday essentials and stay-at-home products, Big Lots is “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,” he said.