Big Lots profit misses Street, cuts Q4 outlook

By IBTimes Staff Reporter | December 03 2010 8:40 AM

Big Lots Inc's quarterly profit missed market expectations by a penny as the close-out retailer spent more to prepare for the holiday season, and the company cut its outlook for its crucial fourth quarter.

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Big Lots, which specializes in sales of excess inventory, expects fourth quarter earnings from continuing operations of $1.36-$1.42 a share, compared with its prior outlook of $1.41-$1.45 a share.

Investments made to open new stores, refresh existing stores, and prepare our business for the all-important holiday season along with softer third quarter sales results caused our expenses to grow at a faster rate than sales, the company said in a statement.

For the third quarter ended October 30, the company posted net income of $17.7 million, or 23 cents a share, compared with $30.3 million, or 37 cents a share, a year ago.

Net sales rose 2 percent to $1.06 billion.

Analysts on average were expecting earnings of 24 cents a share, according to Thomson Reuters I/B/E/S.

Shares of the company, which have risen 7 percent this year, closed at $31.09 Thursday on the New York Stock Exchange.

(Reporting by Mihir Dalal in Bangalore;Editing by Prem Udayabhanu)