Big Lots Drops Big But Retail Sector Gains (BIG, XRT, WMT)

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Big Lots drops big on Friday but the all important retail sector logged gains as shoppers look to Christmas

Big Lots (NYSE:BIG) took a big plunge in Friday’s action, shedding -8.7% after missing earnings estimates in spite of rising revenues.  EPS were $0.06 while revenues rose 5.8% to $1.12 Billion.

The company issued in line guidance for Fourth Quarter with expected earnings of $1.59-$1.66.

Gross margins fell 39% while comparable store sales rose 1.7%  year over year and the company opened 45 new stores.

The decline was largely attributed to company concern about the upcoming all important Christmas shopping season and stiff competition from Dollar General and Wal- Mart. (NYSE:WMT)

Big Lots was Friday’s largest NYSE decliner in percentage terms.

However, the overall retail sector (NYSEARCA:XRT) was unfazed by Big Lot’s problems as the sector rose 1.8% on Friday amid encouraging signs of Christmas buying underway.

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