Big Lots, Inc. (BIG) Misses Q3 EPS by 14c; Plans to Exit Canadian Operations
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Financial Fact:
Earnings per common share - diluted (in dollars per share): 0.03
Today's EPS Names:
VAXX, NMRD, EGRX, More
Financial Fact:
Earnings per common share - diluted (in dollars per share): 0.03
Today's EPS Names:
VAXX, NMRD, EGRX, More
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Big Lots, Inc. (NYSE: BIG) reported Q3 EPS of $0.10, $0.14 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $1.15 billion versus the consensus estimate of $1.23 billion.
Consolidated comparable store sales decreased 2.5%.
As our new management team develops a comprehensive, long-range strategic plan, we have been conducting a detailed evaluation of our current operations and business prospects. As part of this evaluation and after careful exploration of available options, we have decided to exit the unprofitable Canadian market, where we currently operate 73 stores under the Liquidation World or LW brand names, 5 stores under the Big Lots brand name, 2 distribution centers, and an office. We intend to begin an orderly wind-down process immediately and expect that principal operations will cease during the first quarter of fiscal 2014.
We acquired a struggling Canadian business in July 2011 with the intention of revitalizing it and using it as the base for bringing extreme value merchandising and the Big Lots brand to customers in Canada. Over the last two years, we have invested in this business and our team in Canada has worked diligently to turn it around. However, we have not been able to gain the necessary traction in the Canadian marketplace that had originally been anticipated and believe that the significant further capital investments and execution risk associated with continuing to pursue a turnaround would not be in the best interests of our company and shareholders. While the strategic and financial rationale supporting this decision is clear, we regret the impact that the closings will have on our associates, our customers and the communities in Canada where our stores, distribution centers, and office are located. We are committed to exiting our operations in a thoughtful and deliberate manner in order to minimize disruption for our associates and customers.
Our new management team remains focused on identifying the best opportunities in the U.S. to serve our target customer in a manner that brings value to our customers, shareholders and associates. The strategic decision to exit Canada will enable us to focus our resources on introducing e-commerce and omnichannel capabilities, rolling out coolers and freezers to our chain of stores, launching a furniture financing program, significantly realigning our merchandising organization, and moving swiftly to implement our "edit to amplify" merchandising strategy. These bold steps forward all possess the singularly focused goal of strengthening the Big Lots brand and reinvigorating our U.S. business.
Looking forward, we expect to cease operations of our distribution centers in the fourth quarter of fiscal 2013, and we expect to cease operations of our stores in the first quarter of fiscal 2014.
Sees FY2013 EPS of $1.40-$1.55, versus the consensus of $2.11.
Sees FY2013 EPS of $2.40-$2.55, versus the consensus of $2.94.
For earnings history and earnings-related data on Big Lots, Inc. (BIG) click here.
Consolidated comparable store sales decreased 2.5%.
As our new management team develops a comprehensive, long-range strategic plan, we have been conducting a detailed evaluation of our current operations and business prospects. As part of this evaluation and after careful exploration of available options, we have decided to exit the unprofitable Canadian market, where we currently operate 73 stores under the Liquidation World or LW brand names, 5 stores under the Big Lots brand name, 2 distribution centers, and an office. We intend to begin an orderly wind-down process immediately and expect that principal operations will cease during the first quarter of fiscal 2014.
We acquired a struggling Canadian business in July 2011 with the intention of revitalizing it and using it as the base for bringing extreme value merchandising and the Big Lots brand to customers in Canada. Over the last two years, we have invested in this business and our team in Canada has worked diligently to turn it around. However, we have not been able to gain the necessary traction in the Canadian marketplace that had originally been anticipated and believe that the significant further capital investments and execution risk associated with continuing to pursue a turnaround would not be in the best interests of our company and shareholders. While the strategic and financial rationale supporting this decision is clear, we regret the impact that the closings will have on our associates, our customers and the communities in Canada where our stores, distribution centers, and office are located. We are committed to exiting our operations in a thoughtful and deliberate manner in order to minimize disruption for our associates and customers.
Our new management team remains focused on identifying the best opportunities in the U.S. to serve our target customer in a manner that brings value to our customers, shareholders and associates. The strategic decision to exit Canada will enable us to focus our resources on introducing e-commerce and omnichannel capabilities, rolling out coolers and freezers to our chain of stores, launching a furniture financing program, significantly realigning our merchandising organization, and moving swiftly to implement our "edit to amplify" merchandising strategy. These bold steps forward all possess the singularly focused goal of strengthening the Big Lots brand and reinvigorating our U.S. business.
Looking forward, we expect to cease operations of our distribution centers in the fourth quarter of fiscal 2013, and we expect to cease operations of our stores in the first quarter of fiscal 2014.
Sees FY2013 EPS of $1.40-$1.55, versus the consensus of $2.11.
Sees FY2013 EPS of $2.40-$2.55, versus the consensus of $2.94.
For earnings history and earnings-related data on Big Lots, Inc. (BIG) click here.
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