- In-Home Discount Retailer Big Lots Inc BIG reported second-quarter FY22 sales fell 7.6% year-over-year to $1.346 billion, slightly beating consensus of $1.34 billion. Comparable sales decreased by 9.2%.
- Gross margin for the quarter decreased by 700 basis points Y/Y to 32.6%. Operating loss for the quarter was ($109.1) million compared to profit of $53.8 million a year ago.
- The company held $49.1 million in cash and cash equivalents as of July 30, 2022.
- Inventory at the end of the quarter was $1.2 billion, up 22.8% year-on-year, encompassing higher unit costs and a significant increase in inventory in transit.
- The Adjusted EPS loss of ($2.28) topped analyst consensus of ($2.47).
- The Company’s Board of Directors has declared a quarterly cash dividend of $0.30 per share, payable September 23, 2022, to shareholders of record September 9, 2022.
- “Consumers are stretched by inflation and are starting to fall more,” CEO Bruce Thorn said.
- Outlook: Big Lots sees Q3 comparable sales down in the low double-digit range.
- The company expects continued promotional activity in the third quarter, driving a quarterly gross margin rate through the mid-30s.
- BIG said it was taking aggressive steps to improve the gross margin rate in the fourth quarter to a rate roughly in line with the year-ago quarter.
- In addition, the company also plans to take measures to reduce expenses.
- Price Action: BIG shares are trading up 2.78% at $22.15 premarket when last checked on Tuesday.
- Photo via company
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