September 16, 2012- After stating that they were struggling due to competition from online and lower sot retailers, Big Lots, Inc.(BIG) have shown shares that have dropped by over 20 percent.
Big Lots works by selling what manufacturers have overstocked in warehouses and selling them at discounted prices. Thursday saw them state that their fiscal earnings over the last second quarter have seen a fall of 38 percent compared to the same time last year with a new amount of $22.1 million. Sales were shown to have risen by 4.4 percent to currently stand $1.22 billion.
4 pm New York Stock Exchange composite trading saw the company’s shares fall to $8.08, by about 21 percent.
Big Lots also said their losses were not only due to pressure from internet markets and more competitive discount stores but also that customers had reduced spending in products that brought them the biggest profits, such as furniture.
The great losses also mean that their profit forecast for the remainder of the year have been heavily reduced. This has also led the retailer to re consider its executives in order to achieve, what they believe, will be the optimum head office in order to save what they can. Two executives have been promoted to the roles of CFO and chief operating officer whilst the company’s previous head of merchandising has been brought back to take back their old role.