BIG Lots down on earnings miss

|By:, SA News Editor

Big Lots (NYSE:BIG) reports comparable-store sales declined  3% in Q1, missed guidance of flat to slightly down.

Gross margin rate grew 10 bps to 40.4%.

SG&A expense rate increased 250 bps to 34.6%.

Operating margin rate down 260 bps to 3.6%. Adjusted operating margin rate was 4.4%.

Inventory +1.6% Y/Y to $849.63M.

Q2 Guidance: Comparable-store sales: flat to +2%; Adjusted EPS: $0.60 to $0.70.

FY2018 Guidance: Comparable-store sales: ~+1%; Adjusted EPS: $4.50 to $4.70 (+7% to +11%); Cash flow: $110M to $120M.

BIG -3.45% premarket.

Previously: Big Lots misses by $0.24, misses on revenue (June 1)