Next to current market affairs: Big Lots, Inc. (NYSE: BIG)

Big Lots, Inc. (NYSE: BIG) started its trading session with the price $45.2 and closed at price of $44.44 by scoring -1.72%. Day range of the stock was $42.61 – $45.77. BIG stock traded with total volume of 1883661 shares while the average trading capacity remained 1419798 shares.  Earnings per share was $18.18.

Big Lots, Inc. (BIG) recently stated net income of $452.0M, or $11.29 per diluted share, for the second quarter of fiscal 2020 ended August 1, 2020. This result includes a one-time, after-tax benefit of $341.9M, or $8.54 per diluted share, associated with the distribution centers sold as part of the before reported sale/leaseback transactions that closed during the quarter. Not Including this benefit, adjusted net income was $110.1M, or $2.75 per diluted share (see non-GAAP table included later in this release), which compares to the company’s guidance for the second quarter, as provided on June 26, 2020, of $2.50 to $2.75 per diluted share (non-GAAP). Adjusted net income includes about $10M of additional store, distribution center, and corporate bonus expense that was not contemplated in the company’s June 26 guidance. Adjusted net income for the second quarter of fiscal 2019 was $20.6M, or $0.53 per diluted share (non-GAAP).

Net sales for the second quarter of fiscal 2020 totaled $1,644M, a 31.3% increase contrast to $1,252M for the same period last year, with the growth resulting from a 31.3% increase in comparable sales, and sales growth from new and relocated non-comp stores, offset by a slightly lower store count year-over-year.

Commenting on recently’s announcement, Bruce Thorn, President and CEO of Big Lots stated, “I am delighted with our record-breaking results in Q2. Our comp increase was the best in the company’s history, and adjusted EPS was the most we’ve stated in a second quarter, and over five times what we stated a year ago. Comp sales were driven by strong results both in-store, where traffic and basket were each up double digits, and on-line, which drove almost five comp points, and where we purchased more new consumers than in any previous quarter.

Share Repurchase Authorization

As reported in a separate press release, on August 27, 2020, the company’s Board of Directors authorized the repurchase of up to $500M of the company’s outstanding ordinary shares. The authorization may be utilized to repurchase shares in the open market and/or in privately negotiated transactions at the company’s discretion, subject to market conditions and other factors. Pursuant to the authorization, shares may be repurchased commencing September 1, 2020, and the authorization is open-ended.

Dividend

Also reported in a separate press release, on August 27, 2020, the Board of Directors reported a quarterly cash dividend of $0.30 per ordinary share. This dividend payment of about $12M will be payable on September 25, 2020, to shareholders of record as of the close of business on September 11, 2020.

BIG’s shares are at 26.86% for the quarter and driving a -70.21% return over the course of the past year and is now at 95.25% since this point in 2018.  Right now, the stock beta is 2.56. The average volatility for the week and month was at 6.83% and 5.73% respectively. There are 39.13M shares outstanding and 1.77B shares are floated in market.

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