Furniture and home furnishings supplied steady sales for Big Lots during the third quarter of 2016, helping the retailer grow its net income in the three month period.

This happened despite a slight dip in net sales in the quarter.

“Furniture was up mid-single digits as upholstery, mattresses and case goods benefited from the expansion we completed in May,” said Big Lots President and CEO David Campisi. “We added selling square footage to this ownable category with additional choices showcased in our furniture vignettes and lifestyle photography.

“Soft home was also a top performer, up mid-single digits with strength in nearly every department in the category including home decor, frames, decorative textiles, bath, flooring and fashion bedding.”

For the 13 weeks ended Oct. 29, Big Lots posted net sales of $1.105 billion, down slightly from the $1.116 billion in the comparable quarter of 2015. It posted an operating income of $1.95 million in the quarter, reversing a loss of $2.16 million. Net income also reversed in the quarter, growing to $1.38 million, or 3 cents per share, vs. a loss of $1.51 million, or a loss of 3 cents per share in the third quarter of 2015.

These numbers included an after-tax expense of $500,000, or 1 cent per share, associated with legacy pension plans, which have been terminated.

“We are pleased to report in a challenging retail environment the team delivered upon our financial commitments,” Campisi said. “Sales were in line with our communicated guidance while EPS was above our expectations.”

For the 39 completed weeks of 2016, Big Lots’ net sales stand at $3.62 billion, up slightly from 2015’s $3.61 billion. Operating income is at $103.4 million, up from $81 million, while net income jumped to $62.8 million, or $1.36 per share, up from $48.3 million, or 94 cents per share.

(Source: Furniture Today  Author: Thomas Lester)