Big Lots (BIG), which sells brand name items that it buys on closeouts for resale in its stores, this morning, reported Q2 2008 earnings that bested Wall Street expectations. Income for the period was $26.1 million, which translated into a diluted EPS of $0.32. This compares to income in the same period last year of $22.1 million, or a diluted EPS of $0.21.

When factoring the impact of the company’s discontinued operations, Q2 net income came in at $26.0 million for a diluted EPS of $0.32, compared to $23.4 million for $0.22 per diluted EPS in the same period in 2007.

Net sales for the period climbed almost 2 percent to $1.1 billion from $1.08 billion in the comparable period last year. Wall Street’s forecast was for revenues of $1.1 billion and EPS of $0.27.

The company also gave positive guidance that should further boost the stock today. For Q3, Big Lots (BIG) expects diluted EPS to come in at $0.15 to $0.19 compared to the $0.14 earned in Q3 of 2007.

For Q4, the company expects a diluted EPS of $1.02 to $1.09, compared to income from continuing operations (non-GAAP) for Q4 07 of $0.93 per diluted share.

For the full year 2008, Big Lots (BIG) is forecasting income of $1.90 to $2.0. This would represent an increase of 35% to 42% respectively and compares to income from continuing operations of $1.41 for 2007.

The current economic environment has been very good for Big Lots (BIG). Being a closeout retailer, the company offers savings on brand name items and consumers who’ve had to tighten belts are flocking to the company’s stores. As a result, the shares have been well rewarded.

At the current price of $33.06, the company’s stock is up 106.75% for the year, the best performer in the S&P 500. The stock will no doubt be adding to those gains today.

tags: big lots earnings