WASHINGTON (dpa-AFX) - Home discount retailer Big Lots, Inc. (BIG), while reporting a net loss and weak sales in its second quarter, said it expects third quarter one-year comps to be down in the low double-digit range.
Net new stores will add about 140 basis points of growth versus 2021. The company expects continued significant promotional activity in Q3, resulting in a quarter gross margin rate into the mid-30s.
Further, the company is taking aggressive actions to significantly improve the gross margin rate in the fourth quarter, to a rate that is approximately in-line with the prior year quarter. In addition, the company will continue to take actions to reduce expenses.
In its second quarter, net loss was $84.15 million or $2.91 per share, compared to prior year's net income of $37.71 million or $1.09 per share.
Adjusted net loss was $66.0 million or $2.28 per share in the latest quarter.
On average, eight analysts polled by Thomson Reuters expected loss of $2.47 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the second quarter totaled $1.35 billion, a 7.6 percent decrease from $1.46 billion last year. Analysts estimated sales of $1.34 billion for the quarter.
The decline to last year was driven by a comparable sales decrease of 9.2 percent.
Net sales, however, increased 7.5 percent compared to the second quarter of pre-pandemic 2019.
In pre-market activity on NYSE, Big Lots shares were gaining around 2.6 percent to trade at $22.10.
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