Big Lots, Inc. (NYSE: BIG) is one of the best discount retailers out there. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments. It also offers a soft home category that consists of fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The company sells small appliances, table tops, food preparation, stationery, greeting cards, tools, paint, and home maintenance departments as well as furniture and home décor.
Sales are strong under the seasonal category that includes lawn and garden, summer, Christmas, toys, books, sporting goods, and other holiday departments; and electronics and accessories category that includes electronics, jewelry, apparel, hosiery, and infant accessories departments. The stock has been range bound in the last two years, oscillating between $30 and $40 per share. However, the stock is now setting up to break out thanks to a strong quarter and solid guidance.
The company recently reported income from continuing operations of $28.6 million, or $0.50 per diluted share, for the first-quarter of fiscal 2014 ended May 3, 2014. This result exceeded its guidance of $0.40 to $0.45 per diluted share issued on March 7, 2014 and compares to adjusted income from continuing United States operations of $40.3 million, or $0.70 per diluted share (non-GAAP), for the first-quarter of fiscal 2013. Net sales for continuing operations for the first-quarter of fiscal 2014 increased 1.1 percent to $1.28 billion, compared to net sales from continuing U.S. operations of $1,26 billion for the same period of fiscal 2013. Comparable store sales for stores open at least fifteen months increased 0.9 percent for the quarter, compared to its guidance of slightly negative to slightly positive