Big Lots Reports Wider-Than-Expected Loss and Slashes Guidance

Big Lots

Big Lots, Inc. (NYSE: BIG)

Big Lots reported a wider-than-expected third quarter loss on Friday morning before trading began. However, total sales and identical-store sales increased from the same period last year and beat estimates.


The company lowered its fiscal 2018 and fourth quarter earnings outlook, but stuck to its guidance for identical-store sales for the full year.

BIG Earnings & Outlook

Big Lots reported a net loss of $6.6 million, or $0.16 per share, missing its third quarter target of a loss of 6 cents to a profit of $4 cents. Wall street had estimated a loss of 1 cent per share. It had reported a profit of $4.4 million, or 10 cents a share in the same period last year.

Net revenue was $1.15 billion, up 3.6% from $1.11 billion reported in the year ago period. Analysts revenue estimate for the quarter was $1.14 billion. Identical-store sales climbed by 3.4 % narrowly topping estimates of 3% increase. The company expects identical-store sales for the last quarter to range between 0% and 2%.

Big Lots lowered its fourth quarter net income guidance to between $2.20 and $2.40 per share from $2.90 to $3 per share. Factset consensus estimate is earnings of $2.92 per share.

It expects to report full year earnings on an adjusted basis in the range of $3.55 to $3.75 per share from the previous outlook of $4.40 to $4.55 per share. Analysts are expecting adjusted earnings per share of $4.45. It still expects to post a 1% increase for identical-store sales for fiscal 2018.

Big Lots CEO Comments

Big Lots Chief Executive Bruce Thorn commented, “In terms of third quarter, we were pleased to achieve our second consecutive quarter of positive comps, but our bottom line results fell short of our expectations.  While we expect near-term results to be challenging this holiday season, we have a strong brand, great people, and we are working swiftly to enhance our current strategy, identify new growth opportunities, and position our business for profitable expansion well into the future.”

Big Lots Inc., Company Profile

Big Lots, Inc. is a community retailer operating more than 1,400 BIG LOTS stores in 47 states, dedicated to friendly service, trustworthy value, and affordable solutions in every season and category-furniture, food, decor, and more. It supports the communities it serves through the Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare, and education.


It operates through Discount Retailing segment which includes merchandising categories such as Furniture, Seasonal, Soft Home, Food, Consumables, Hard Home, and Electronics, Toys, & Accessories. Big Lots was founded by Sol A. Shenk in 1967 and is headquartered in Columbus, Ohio. Its competitors include Pricesmart Inc., Fred’s Inc. and Ollie’s Bargain Outlet Holdings Inc. – CNN Money