BIG - Big Lots shares sink after another downgrade ahead of earnings

Analysts are piling skepticism on Big Lots (NYSE:BIG) ability to outperform earnings expectations of late. Adding to a recent bearish review from Piper Sandler, Bank of America analyst Jason Haas wrote that unprecedented promotional activity at the retailer leads him to “expect a BIG move down” on earnings day. He noted that a combination of unfavorable weather, a late Easter holiday, a delayed tax refund season, the lapping of stimulus, and pull-forward for sales during the pandemic all point to a big miss. Haas added that a “meaningful step-up” in promotional activity suggests that inventory issues are also confronting the company. “Although management has done a good job improving the Big Lots concept, we’re concerned that these changes won’t be enough to offset a challenging macro environment,” he told clients. “In fact, many of the changes made over the past 5+ years have shifted BIG away from food & consumables

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Big Lots shares sink after another downgrade ahead of earnings