Shares of discount retailer Big Lots (NYSE:BIG) tumbled on Thursday after the company posted worse-than-expected quarterly earnings and cut its outlook for the rest of the year.
The company said it earned $22.1 million during the second quarter, down 38% from $35.7 million in the same period last year.
Quarterly revenue increased to $1.22 billion, up 4.4% from last year, but fell just short of the $1.24 billion Wall Street was looking for, Fox Business noted.
EPS was 36 cents, down from 50 cents in 2011, and well below analysts’ forecast of 41 cents.
Company officials trimmed their earnings guidance for 2012. They now expect profits of between $2.80 and $2.95 a share. That was down substantially from prior estimates of between $3.25 and $3.40 a share. Wall Street had predicted earnings of $3.29 a share for the year.
Investors rushed for the exits, sending Big Lots shares down more than 22% in Thursday afternoon trading.
Also reduced was the company’s cash flow projection. Big Lots slashed that estimate from $190 million for the year, to just $125 million. The chain noted that same-stores sales during the second quarter slipped by 1.9% and projected declining store sales in coming quarters.