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Despite Tough Q4, Big Lots Sees Sales, Profit Hikes for Year
March 3,
2017 by Larry Thomas in Financial Reports, Industry 
Despite a difficult fourth quarter, discount retailer Big Lots (NYSE: BIG) said net income rose 7% for the fiscal year ended Jan. 28 as sales inched up 0.2%.
Profits for the year totaled $152.8 million or $3.32 per share. That was up from $142.8 million or $2.80 per share the previous fiscal year.
Sales totaled $5.2 billion, up from $5.19 billion the previous year.
The fourth quarter saw net income fall 4.7% to $90.1 million or $1.99 per share. In the previous year's fourth quarter, profits totaled $94.7 million of $1.91 per share. (The most recent per-share figures were higher because the retailer had fewer shares outstanding.)
The most recent quarter included an after-tax charge of $14.3 million or 32 cents per share as the company made final payouts from its legacy pension plan that has been terminated.
Not including the pension charge and a one-time gain of 5 cents per share from the sale of real estate, the retailer's adjusted net income totaled $2.26 per share, which was above its earlier projection of $2.18 to $2.23 per share.
Fourth-quarter sales fell 0.3% to $1.579 billion, but comparable store sales rose 0.3% due to a lower store count.
"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," said David Campisi, president and CEO.
"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."
Big Lots ended the fiscal year with 1,432 stores in 47 states.
Campisi also said the board of directors approved a hike of 4 cents per share in the quarterly cash dividend. The new dividend of 25 cents per share is payable March 31 to stockholders of record March 17.