Big Lots (NYSE:BIG) shares surged more than 12% in Tuesday midday trading after the company reported a smaller-than-anticipated loss and announced that its CEO would retire.
News of the departure came after the close-out retailer reported a third-quarter loss of 10 cents per share. Analysts had expected a much worse loss of 24 cents a share, the Columbus Dispatch noted.
But third-quarter same-store sales in the U.S. fell 4.6% over the prior year.
Big Lots also boosted its earnings estimate for the full year to between $2.86 and $3.05 a share, up from an earlier forecast of between $2.80 and $2.95 a share. The new estimate tops the earnings of $2.80 a share that Wall Street is looking for.
The retailer predicts fourth-quarter earnings of between $1.91 and $2.10 a share. That’s in line with analyst forecasts of $2.01 a share.
CEO, Chairman and President Steven Fishman said he would step aside next year as soon as a replacement was found and would continue with as a consultant to Big Lots. The company has retained an executive recruitment firm to assist with the search for Fishman’s successor.