Big Lots (BIG) reported earnings Thur 27 Feb 20 (a/h)

** charts before earnings **

 

 

   

 

** charts after earnings **

BIG Big Lots misses by $0.13, misses on revs, comps -0.9%; guides Q1 EPS well below consensus; guides FY20 EPS below consensus; co is slowing its Store of the Future rollout

Reports Q4 (Jan) earnings of $2.39 per share, excluding non-recurring items, $0.13 worse than the S&P Capital IQ Consensus of $2.52; revenues rose 0.5% year/year to $1.61 bln vs the $1.62 bln S&P Capital IQ Consensus.

• Comps decreased -0.9% in Q4 vs prior guidance of slightly positive.

Co issues downside guidance for Q1 (Apr), sees EPS of $0.30-0.45, excluding non-recurring items, vs. $0.93 S&P Capital IQ Consensus.

• Co guides to Q1 comps of a low to mid-single digit decline, which includes the estimated impact of supply chain disuruption due to the coronavirus.
• "We expect a challenging first quarter of 2020, due in part to upfront investments in our higher-return growth initiatives, combined with a slow start to the quarter and the sales impact of supply chain disruption related to the coronavirus.

Co issues downside guidance for FY20, sees EPS of $3.20-3.40, excluding non-recurring items, vs. $4.04 S&P Capital IQ Consensus.

• Co guides to FY20 comps of flat to a low single digit increase with comps accelerating in the second half of the year as the growth initiatives are rolled out.

Strategic Transformation Update: "Based on some recent softness in sales trends, we are slowing our Store of the Future rollout and assessing our capital allocation strategy with a focus on markets where we expect the strongest returns, while adding newer, higher-return growth initiatives."

Co maintains dividend of $0.30 per share.