Big Lots Stock Plunges 21 Percent on Net Income
Standard & Poor’s Ratings Services said Thursday it is reviewing its ratings for retailer Big Lots (Stock Symbol: BIG) for a possible downgrade after the company shocked investors with a weak earnings report.
Earlier Thursday August 23, 2012 — the Columbus, Ohio-based retailer reported a 38 percent drop in its second-quarter net income and slashed its profit forecast for the year. The company also announced a shake-up in its executive ranks.
Shares of Big Lots plunged nearly 21 percent to $30.76 after touching a 52-week low of $29.33 and then shed an additional 11 cents in after-hours trading.
S&P said it is assessing Big Lots’ “BBB” corporate credit rating and expects to complete the review within three months. The company has $243 million in debt outstanding as of July 28.
“We could lower Big Lots’ ratings if we believe the company will not be able to restore profitability and credit measures consistent with our previous expectations,” said Standard & Poor’s credit analyst Gerald Phelan.
Its competitors Dollar General (Stock Symbol: DG) is off $6.33 per share from its 52 week high and Dollar Tree (Stock Symbol: DLTR) is off $8.32 per share from its 52 week high.