Big Lots sees same-store sales slip slightly

Posted Aug 6th 2009 10:30AM by Mark Fightmaster
Filed under: Before the Bell

This morning, discount retailer Big Lots (NYSE: BIG) announced that same-store sales dropped 2.4% during the second quarter. The company's sales were pulled lower by weakness in its home and furniture categories, but still fell in range of its earlier forecast for a decline of 1% to 3%.

While furniture and home acted as an anchor on sales, the company's consumables, hardlines, and seasonal categories performed well. Total retail sales for the quarter fell 2.3% to $1.07 billion while year-to-date same-store sales fell $2.2 billion.

Watch for this news to make a bit of a dent in BIG's recent good fortune, as the equity has enjoyed a four-week run higher. This brief rally has pushed the shares through their 10-, 20- and 50-week moving averages -- all of which could now provide support. That said, the $25 level looms overhead and could act as resistance, as it has in the past.

The retailer could benefit from its earnings report, which is due on August 25. With the economy in the tank, discount retailers like BIG could benefit thanks to their inexpensive offerings. Stronger-than-expected earnings could result in a continued rally for BIG while a weak report could send the shares retreating to the support of their weekly and monthly trendlines.

Tags: BIG, big lots, BigLots, discount retailers, DiscountRetailers, earnings, inthenews, retail, sales, same-store sales, Same-storeSales