Big Lots reported a fiscal-third-quarter loss narrower than anticipated, as the company continued to emphasize on cost-cutting and restructuring.
For the three months ended November 2, the retail company incurred an adjusted loss of -18 cents a share, compared to the -20 cents loss expected by analysts polled by FactSet. In the year-ago quarter, the loss was -12 cents a share.
The results include an after-tax gain of $136.6 million, or $3.49 a share, from the sale of the company's distribution center in Rancho Cucamonga, Calif., as well as after-tax expense of $2.6 million, or 7 cents a share, associated with the company's strategic business revamp.
Big Lots’ sales for the quarter increased +1.6% to $1.17 billion, in line with the $1.2 billion expected by analysts.
Same-store sales decreased -0.1%, compared to the company’s guidance of flattish growth.
For the fourth-quarter, Big Lots has projected earnings of $2.40 to $2.55 a share, and expects a slight increase in comparable-store sales. Analysts polled by FactSet are expecting $2.55 a share in earnings.
CEO Bruce Thorn said that the company expects to return to EBIT and EPS growth in 2020, including substantial boost in normalized free cash flow. This is expected after a year of restructuring in 2019.