10:00AM New York – Big Lots jump on better than expected earnings and positive outlook.

Big Lots (BIG: chart) today reported net income of $92.0 million or $1.04 per diluted share for the 13 week or fourth quarter of fiscal 2007 on net sales declined to $1.4 billion from $1.54 billion a year ago.

This compares to net income of $104.3 million, or $0.94 per diluted share for the 14 week fourth quarter of fiscal 2006. Operating profit increased 9.4% from 8.9% a year ago.

For the 52 week fiscal 2007 ended February 2, 2008, net income was $158.5 million, or $1.55 per diluted share, compared to net income of $124.0 million, or $1.11 per diluted share, for the 53 week fiscal 2006.

For the fourth quarter of fiscal 2007, the income from continuing operations was $85.6 million, or $0.97 per share, compared to income from continuing operations of $91.6 million, or $0.83 per share, for the same period of fiscal 2006.

For fiscal 2007, income from continuing operations was $151.2 million, or $1.47 per share compared to income from continuing operations of $112.6 million, or $1.01 per diluted share for fiscal 2006.

Inventory ended the fourth quarter at $748 million, down 1% or $10 million compared to last year. Lower inventory value resulted from a decline in store count as average store inventory levels were relatively flat compared to the prior year.

Big Lots estimated income from continuing operations in 2008 to increase between $1.70 and $1.80 per share from $1.41 in 2007. The retailer estimated same store sales to increase between 1% and 2%.

Big Lots stock jumped 21% or $3.69 to $21.05.