Close-out retailer Big Lots Inc
Big Lots, which stocks its stores with merchandise that has been overproduced, discontinued or rejected by other retailers, 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.
The Columbus, Ohio-based company, which competes with larger firms such as Dollar General Corp
Additionally, competition has intensified in the toys category, which contributes a sizeable amount to Big Lots' fourth-quarter sales.
In the past few months, Toys R Us Inc
For the third quarter ended October 30, the company posted net income of 23 cents a share, missing analysts' average estimate of 24 cents a share, according to Thomson Reuters I/B/E/S.
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.
Net sales rose 2 percent to $1.06 billion.
Shares of the company, which have risen 7 percent this year, were down 5 percent at $29.54 before the bell. They closed at $31.09 on Thursday on the New York Stock Exchange.
(Reporting by Mihir Dalal in Bangalore; Editing by Prem Udayabhanu, Editing by Roshni Menon)