Big Lots Net Falls 76 Percent in Third Quarter
December 2, 2011,
COLUMBUS, Ohio-Rising expenses and an operating loss from its recently acquired Canadian operation slashed Big Lots' third-quarter net income by 76 percent, to $4.2 million.
Selling, general and administrative expenses rose 8.1 percent in dollars and 10 basis points as a percentage of sales, to 36.2 percent. The company also reported a 17 percent rise in depreciation expense and a 22 percent increase in interest expense. Gross margin fell 152 basis points to 39 percent.
The expense increases offset a 7.8 percent increase in third-quarter sales, which totaled $1.1 billion. This included a pickup of 1.7 percent in U.S. same-store sales. Big Lots projected a same-store sales rise of 1 to 2 percent for its U.S. stores in its fiscal fourth quarter.