The Latest Breaking News from Bruce Thorn

Discount retailer Big Lots says it is planning to start liquidating hundreds of locations nationwide after a sale to Nexus Capital Management fell through.

The bankrupt discount home goods retailer will begin liquidation sales at all remaining stores in the coming days.

The struggling chain believes its financial position “raises substantial doubt about the company’s ability to continue as a going concern.”

In a year that has already seen popular discounters Tuesday Morning and Christmas Tree Shops liquidate, another big name could follow them.

Although a stronger-than-expected print for Big Lots’ second quarter got Wall Street excited about BIG stock, it’s important to consider what the institutional investors are thinking.

Big Lots stock soared after beating earnings expectations, but said its "core lower-income customer remains under significant pressure."

Big Lots Inc (NYSE:BIG) reported a first-quarter FY22 revenue decline of 15.4% year-over-year to $1.37 billion, missing the consensus of $1.46 billion. Comparable sales decreased 17% versus an 11.3% increase last year. Ecommerce accounted for 7% of total sales in the quarter. The gross margin for the quarter decreased 350 basis points Y/Y…

"We believe the slowdown was caused by the spending pressure our consumers felt from higher gas prices and broader inflation," said CEO Bruce Thorn.

Big Lots Inc (NYSE:BIG) reported a fourth-quarter FY21 sales decline of 0.3% year-on-year, to $1.73 billion, beating the consensus of $1.72 billion. Comparable sales decreased 2.3% versus a 7.9% increase last year. On a two-year basis, comparable sales increased 5.4%.  The gross margin for the quarter decreased 210 basis points Y/Y to 37.3%.…