Cash-strapped bargain hunters have made it possible for discount retailers Big Lots Inc. (NYSE: BIG) and Costco Wholesale Corp. (NASDAQ: COST) to report healthy profit increases on Thursday.

Big Lots reported that its first-quarter profit rose 20% to $34.5 million, or 42 cents per share, from the same period in the prior year. Quarterly sales grew 2% to $1.15 billion.

Analysts surveyed by Thomson Financial had predicted a first-quarter profit of 36 cents per share on revenue of $1.14 billion.

The Columbus, Ohio-based company said that same-store sales increased 3.4% during the quarter, and also said that results were helped by having about 30 million fewer shares outstanding.

Shares of Big Lots closed up $2.18, or 7.6%, to $30.71. Shares have risen 92.1% since the beginning of the year.

Costco reported a 32% jump in third-quarter profits to $295.1 million, or 67 cents per share. Revenue increased 13% from the year-ago period, to $16.26 billion. Including membership fees, revenue rose to $16.61 billion.

Analysts surveyed by Thomson Financial had expected a profit of 65 cents per share on revenue of $16.35 billion.

The Issaquah, Wash.-based company said net sales for the first three quarters of fiscal 2008 increased 12% to $48.35 billion.

After rising as high as $74.75 in morning trading, Costco shares fell off in the afternoon to close at $72.98. Shares are up 4.6% since the beginning of the year, and hit a 52-week high of $75.23 last week.

Sears Holdings Corp. (NASDAQ: SHLD) also reported Thursday, but didn't have the same luck. Sears unexpectedly swung to a $56 million quarterly loss, blaming stiff competition.

Visit AOL Money & Finance for more earnings coverage.