BIG - Big Lots shares battered after big profit miss pessimistic forecast

Big Lots (NYSE:BIG) shares cratered on Friday after the company missed analyst estimates by a wide margin and voiced little confidence in the quarters ahead. The Columbus, Ohio-based discount retailer reported a surprise EPS loss of $0.37, a whopping $1.37 below expectations, alongside a $90M miss on revenue in the first quarter. The latter figure reflected a 15.4% decrease compared the prior year while comparable sales fell 17%. Gross margins fell 350 basis points and are expected to be squeezed further in coming quarters as inventory skyrocketed in the quarter gone by. Inventory grew to $1,338.7M in the first quarter, a 48.5% increase compared to the prior year. To “right-size” this inventory, management expects significant promotional activity that will cut into already thinning margins moving forward. “Trends materially slowed in April, resulting in a need to increase markdowns,” CEO Bruce Thorn explained. “We believe the slowdown was caused by the

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Big Lots shares battered after big profit miss, pessimistic forecast