Executive Summary

• Big Lots reported adjusted 1Q16 EPS of $0.82 versus the consensus estimate of $0.70.
• Total revenues were $1.31 billion versus consensus of $1.30 billion. Comps increased by 3% versus consensus of 2.2% and guidance for a low-single-digit increase. The comp increase was partially offset by fewer open stores, as total sales increased by 2.5% year over year.
• Management provided 2Q16 guidance of $0.42–$0.47 versus consensus of $0.45. Comps are expected to be flat–2% versus consensus of 1.7%. Full-year guidance calls for EPS of $3.35–$3.50, up from prior guidance of $3.20–$3.35 and versus consensus of $3.31. Management reaffirmed its comp guidance; it expects comps to increase by low single digits versus consensus of 2%.