Discount Retailer Big Lots Is Being Hammered After Slashing Guidance

discounts, recession, ap, august 2009

Photo: AP

Discount retailer Big Lots missed earnings expectations this morning after its newly acquired Canadian operations weighed down results and the company was forced to slash guidance.The Columbus, Ohio, based company reported net income from continuing operations of $22.1 million, or $0.36 a share. Revenues improved four per cent from the year ago period, to $1.22 billion.

Analysts polled by Bloomberg were looking for earnings of $0.42 a share on sales of $1.24 billion.

However, even as total sales advanced, sales at stores open for at least 15 months in the U.S. fell 1.9 per cent. The opening of 18 new stores offset those declines.

Big Lots slashed its guidance to a range of $2.80 to $2.95 a share, from as much as $3.40 earlier this year.

Shares are down more than 20 per cent in pre-market trade following the report.

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