Big Lots’ profit tops forecast

Big Lots reported thirdquarter earnings that beat Wall Street expectations, but its comparable-store sales were slightly below predictions.

All in all, the results at the Columbus-based discount and closeout retailer left David Campisi, CEO and president, “very pleased.”

“In a challenging retail environment, the team delivered on our financial commitments with sales in line with our communicated guidance, and earningsper-share growth above our expectations,” Campisi said Friday in a conference call with analysts.

Campisi said he was particularly happy because the company’s fiscal third quarter historically has been challenging for the company.

Sales rose to $1.11 billion from $1.1 billion during the same quarter of 2016, slightly below Wall Street’s expectation of $1.12 billion.

Income in the quarter was $4.4 million, or 10 cents per share, up from $1.4 million, or 3 cents per share, a year earlier. Part of the increase in earnings was due to an insurance recovery, but even excluding that, income was 6 cents per share. Both earnings numbers beat analysts’ prediction of 4 cents per share.

Big Lots is slowly rolling out its “store of the future” prototype,, adding a store in Phoenix joining the one in Columbus. Although Big Lots officials would not reveal exact sales numbers for the redesigned store, Campisi said that “it’s outperforming the company.”

Investment analysts were upbeat about the results.

“We see consumers focused on value, with investors cautious on retail,” said analyst Efraim Levy of CFRA in a note to investors.

“We remain bullish on the longer-term tactical strategy ... seeing upside potential from ‘store of the future’ remodels,” said analyst Vincent J. Sinisi of Morgan Stanley in a note to investors.

Big Lots predicts that comparable-store sales will be flat or increase by up to 2 percent in its fourth quarter.

The company raised its predictions for fourthquarter income to between $2.35 and $2.40 per share, an increase in the lower end of the range from its earlier prediction of between $2.30 and $2.40 per share.

Big Lots also raised its prediction for full-year earnings to between $4.23 and $4.28 per share from its previous estimate of $4.15 to $4.25 per share.

The company’s shares closed at $58.21, down 89 cents, or 1.5 percent.