Big Lots, Inc. (NYSE:BIG) reported downbeat results for its fourth quarter and issued weak earnings guidance.
The Columbus, Ohio-headquartered Big Lots repored net income of $93.8 million, or $2.39 per diluted share, for the fourth quarter of fiscal 2019 ended February 1, 2020.
This result compares to the company's previously communicated guidance of net income of $2.40 to $2.55 per diluted share. Net income for the fourth quarter of fiscal 2018 was $108.0 million, or $2.68 per diluted share.
Net sales for the fourth quarter of fiscal 2019 totaled $1,607 million compared to $1,599 million for the same period last year, with the increase resulting from sales growth in high volume new and relocated non-comp stores, and a slightly higher store count year-over-year, partially offset by a comparable sales decline.
Comparable sales decreased 0.9% for the fourth quarter of fiscal 2019, compared to guidance of slightly positive.
CEO Bruce Thornstated, "Our fourth quarter was a hard-fought one in which our sales came in below expectations and increased promotions drove our gross margin rate lower. However, these impacts were significantly offset by continued strong expense management and a favorable tax rate.
"On a full-year basis, we delivered a positive comp and overall sales growth, and ended the year with significantly reduced debt levels and well-controlled inventories."
Big Lots shares suffered big losses Friday morning, dropping $6.80, or 30.3%, to $15.64.
