Big Lots Inc. shares [s big] rose 2.6% premarket Tuesday, after the wholesaler posted a narrower-than-expected second-quarter loss and sales that edged ahead of consensus. The Columbus, Ohio-based company had a net loss of $84.2 million, or $2.91 a share, for the quarter to July 30, after earnings of $37.7 million, or $1.09 a share, in the year-earlier period. Excluding an after-tax charge relating to store asset impairment charges, the company’s adjusted loss was $2.28 a share, narrower than the $2.47 loss per share FactSet consensus. Sales fell 7.6% to $1.35 billion from $1.46 billion, just ahead of the $1.34 billion FactSet consensus. Same-store sales fell 9.2%, while FactSet was expecting a decline of 9.8%. “We remain laser focused on helping our customers navigate these challenging times by delivering outstanding value across our assortment,” Chief Executive Bruce Thorn said in a statement. The company brought down inventories “materially” versus the first quarter, and is on track to right-size inventory by the fourth quarter, he said. Looking to the third quarter, the company is expecting same-store sales to be down in the low double-digit range. It expect net net stores to add about 140 basis points of growth compared with 2021. It also expects “continued significant promotional activity” resulting in a gross margin rate into the mid03s and that SG&A dollars will grow in the low single digits. Shares have fallen 52% in the year to date, while the S&P 500
SPX,
has fallen 15%.
Big Lots stock up 2.6% premarket after Q2 loss is smaller-than-expected and sales edges ahead of consensus
