UPDATE 3-Big Lots profit beats Street; shares jump
* Q2 EPS ex-items 35 cts vs Wall St view 30 cts
* Raises full-yr EPS view to $1.92-$2.02 from $1.85-$1.95
* Sales fall 1.7 pct
* Shares up nearly 10 pct (Adds stock price, company comment, byline; changes dateline, previously BANGALORE)
NEW YORK, Aug 25 (Reuters) - Big Lots Inc (BIG.N) posted a higher-than-expected 9.2 percent rise in quarterly profit on Tuesday, helped by tight expense controls, and the close-out retailer raised its full-year profit outlook, sending its shares higher.
Building on the momentum in its business, Big Lots, which specializes selling of excess merchandise, said it was opening five more stores than initially planned this year, and will roll out a loyalty-card program to offer discounts to frequent shoppers.
While manufacturers have cut production to match suppressed consumer demand, Big Lots said it was not worried about its ability to stock new merchandise for the year-end holiday shopping season.
"We're absolutely not concerned about the fourth quarter," CEO Steve Fishman said on a call with analysts.
Net income for the second quarter that ended Aug. 1, rose to $28.4 million, or 34 cents per share, from $26 million, or 32 cents per share, a year earlier.
Excluding items, earnings were 35 cents a share, compared with the analysts' average forecast of 30 cents, according to Reuters Estimates.
Net sales fell 1.7 percent to $1.09 billion, while sales at stores open at least two years, or same-store sales, fell 2.4 percent.
Cowen & Co analyst Laura Champine said in a note the results left her bullish on the stock.
"While the top-line remains pressured, we believe capital investments into store operations is leading to a better shopping experience, and ongoing improvements in inventory management continue to benefit margins," she wrote.
RAISING ITS PROFILE, OPENING MORE STORES
Big Lots stocks its stores with merchandise that has been overproduced, discontinued or rejected by other retailers that have had to cancel orders. Continued...
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