BIG Lots -7.6% on earnings miss

|By:, SA News Editor

Big Lots (NYSE:BIG) reports comparable-store sales rose 3.4% in Q3, meets guidance of +2% to +4%.

Gross margin rate down 10 bps to 39.9%.

SG&A expense rate up 120 bps to 38%.

Inventory +3.5% Y/Y to $1.07B.

Q4 Guidance: Comparable-store sales: flat to +2%; Adjusted EPS: $2.20 to $2.40.

FY2018 Guidance: Comparable-store sales: ~+1%; Adjusted EPS: $3.55 to $3.75.

Bruce Thorn, President and Chief Executive Officer of Big Lots, stated, "In terms of third quarter, we were pleased to achieve our second consecutive quarter of positive comps, but our bottom line results fell short of our expectations.  While we expect near-term results to be challenging this holiday season, we have a strong brand, great people, and we are working swiftly to enhance our current strategy, identify new growth opportunities, and position our business for profitable expansion well into the future."

BIG -7.6% premarket.

Previously: Big Lots misses by $0.16, beats on revenue (Dec. 7)

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