Yahoo Finance Big Lots Falls on Forecasting Weaker Annual Sales After Quarter Miss
By Dhirendra Tripathi
Investing.com – Big Lots stock (NYSE:BIG) fell 5% on Friday after the discount retailer warned its 2021 comparable sales and margins will be lower than those of the previous year owing to supply chain disruptions and higher freight costs.
Sales and earnings in the second quarter were also lower than estimates.
The company said its 2021 comparable sales will decline in low-single-digit on a year-on-year basis. The company doesn’t give comparable sales numbers in absolute terms. Total net sales in 2020 were $6.19 billion.
Gross margins are seen lower by 100 basis, owing to costlier transportation. One basis point is one-hundredth of a percent.
Earnings per diluted share are seen between $5.90 and $6.05, lower than the $7.35 the company clocked in the last financial year.
President and CEO Bruce Thorn said the company had two-year comparable sales growth across all merchandise categories other than food, with strong double-digit two-year growth in furniture, soft home, hard home, and apparel, electronics and other.
Furniture sales remain strong and were up over 30% from 2019, he said.
Ecommerce demand grew by 10% during May to July compared to 2020’s second quarter.
On a net basis, the neighborhood discount retailer added eight stores to close with 1,422 stores by the end of July.
Net sales for the second quarter totaled $1.45 billion, an 11% decrease from the same period last year. Comparable sales fell 13%. Diluted earnings per share were $1.09.
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