Big Lots, Inc. (BIG) has reported a 4.71 percent fall in profit for the quarter ended Jan. 28, 2017. The company has earned $90.08 million, or $1.99 a share in the quarter, compared with $94.53 million, or $1.91 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $102 million, or $2.26 a share compared with $99.52 million or $2.01 a share, a year ago.
Revenue during the quarter went down marginally by 0.30 percent to $1,579.21 million from $1,583.97 million in the previous year period. Gross margin for the quarter expanded 51 basis points over the previous year period to 41.37 percent. Total expenses were 90.85 percent of quarterly revenues, up from 90.23 percent for the same period last year. That has resulted in a contraction of 61 basis points in operating margin to 9.15 percent.
Operating income for the quarter was $144.53 million, compared with $154.71 million in the previous year period.
However, the adjusted operating income for the quarter stood at $164.40 million compared to $162.96 million in the prior year period. At the same time, adjusted operating margin improved 12 basis points in the quarter to 10.41 percent from 10.29 percent in the last year period.
Commenting on today's release, David Campisi, chief executive officer and President of Big Lots, stated, "I'm pleased to report a solid fourth quarter in what was a very difficult retail environment. We remained focused on our ownable, winnable merchandise strategy, improving the quality and value of our assortments, and our in-store service to Jennifer. Throughout 2016, we were able to drive improved consistency in our business resulting in operating profit and EPS results meaningfully above our original plans and last year. I am proud of our team and the accomplishments of 2016 and the last three years as we have made significant progress, in a very short period of time, repositioning our business for long-term success."
For fiscal year 2017, Big Lots, Inc. expects diluted earnings per share to be in the range of $3.95 to $4.10.
For the first-quarter, Big Lots, Inc. expects diluted earnings per share to be in the range of $0.95 to $1.05.
Operating cash flow declines
Big Lots, Inc. has generated cash of $311.92 million from operating activities during the year, down 8.89 percent or $30.43 million, when compared with the last year.
The company has spent $84.70 million cash to meet investing activities during the year as against cash outgo of $113.19 million in the last year.
The company has spent $230.20 million cash to carry out financing activities during the year as against cash outgo of $227.28 million in the last year period.
Cash and cash equivalents stood at $51.16 million as on Jan. 28, 2017, down 5.50 percent or $2.98 million from $54.14 million on Jan. 30, 2016.
Working capital remains almost stable
Working capital of Big Lots, Inc. remained almost stable for the quarter at $315.78 million, when compared with the previous year period. Current ratio was at 1.47 as on Jan. 28, 2017, down from 1.47 on Jan. 30, 2016.
Debt increases substantially
Big Lots, Inc. has witnessed an increase in total debt over the last one year. It stood at $106.40 million as on Jan. 28, 2017, up 70.79 percent or $44.10 million from $62.30 million on Jan. 30, 2016. Total debt was 6.62 percent of total assets as on Jan. 28, 2017, compared with 3.80 percent on Jan. 30, 2016. Debt to equity ratio was at 0.16 as on Jan. 28, 2017, up from 0.09 as on Jan. 30, 2016. Interest coverage ratio deteriorated to 111.35 for the quarter from 163.54 for the same period last year.
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