Shares of Big Lots Hammered After Q2 Earnings Miss and Weak Guidance

Shares of Big Lots

, a North American close out retailer based in Cincinnati Ohio, tumbled Thursday after posting poor second-quarter earnings and cutting its fiscal year guidance. Big Lots reported an EPS at $0.36, a full $0.05 below the estimate of $0.41. Revenues were also off the mark, coming in at $1.1 billion, a significant miss from the consensus view of $1.24 Billion. Also included in its report was a mention that the company had bought back almost four million shares in the second-quarter. The company's guidance didn't help its case either. Big Lots guided its fiscal year EPS to $2.80-2.95, much lower than the $3.25-3.40 it had seen previously, and below the estimate of $3.00. It also predicted its third-quarter comps to be in the negative single digits, suggesting that a bumpy road lies ahead for the battered discounter. Adding to the fall, Big Lots was cut to Equalweight by Johnson Rice Thursday morning. Investors reacted by continuing to sell shares. In response to the earnings miss, Big Lots announced a significant management shake up. The company replaced its Chief Operating Officer, Chief Administrative Officer, Chief Financial Officer, and its Senior Vice President of Human Resources. Despite its efforts in slowing the bleeding, the change in management did not inspire investors as shares continued to fall throughout the day. Shares of Big Lots traded down almost 24 percent Thursday near $29.50.