Shares of Big Lots Inc. (BIG) dropped 2.8% in premarket trading Thursday, after the discount retailer reported fiscal fourth-quarter profit and that missed expectations while sales topped, citing a "tough" month of January, and provided a downbeat outlook for the current quarter. Net income for the quarter to Jan. 29 fell to $49.8 million, or $1.63 a share, from $98.0 million, or $2.59 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.75 was below the FactSet consensus of $1.89. Sales slipped 0.3% to $1.73 billion, topping the FactSet consensus of $1.72 billion, as same-store sales fell 2.3% to beat expectations of a 3.1% decline. Gross margin declined to 37.3% from 39.4%. "January was a tough month as inclement weather and the Omicron spike caused a slowdown in our business, further impacted by inventory delays in key areas," said Chief Executive Bruce Thorn. "However, as we have moved into 2022, we have seen these factors abate, and sales are regaining traction." For the first quarter, the company expects EPS of $1.10 to $1.20 and a "low double-digit" percentage decline in sales. The FactSet EPS consensus is $1.44 and the sales consensus of $1.51 billion implies a 7.3% decline. The stock has tumbled 18.8% over the past three months through Wednesday, while the S&P 500 has slipped 3.4%.
(END) Dow Jones Newswires
March 03, 2022 07:08 ET (12:08 GMT)
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