Big Lots is reportedly considering bankruptcy amid continued declines in sales. The off-price home goods retailer received a loan earlier this year to help it navigate a liquidity crunch and is now seeking investors in an attempt to avoid bankruptcy, Bloomberg reported Wednesday (Aug. 28), citing unnamed sources. No final decision has been made on any of these plans, according to the report. The retailer has seen years of sales declines, per the report. Big Lots did not immediately reply to PYMNTS' request ...

Closeout Deal Includes Halloween Indoor and Outdoor Décor; Children, Adult and Pet Costumes; and Trickor-Treat Essentials For 50-70% Less Than Original Retail Pricing COLUMBUS, Ohio, Aug. 20, 2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG), today announced the acquisition of its biggest extreme bargain Halloween closeout ever after purchasing a well-known national party supply retailer's overstock, originally valued at $11 million. The deal covers hundreds of new Halloween items, including indoor and outdoo ...

Company to Broadcast Conference Call COLUMBUS, Ohio, Aug. 15, 2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today announced it will report the results for the second quarter of fiscal 2024 on Friday, September 6, 2024. The company will host a conference call at 8:00 a.m. Eastern Time on Friday, September 6, 2024. A live webcast of the call will be available through the Investor Relations section of its website at http://www.biglots.com/corporate/investors/ or by phone by dialing 877.407.3088 (Toll Free) o ...

In some cases, a market downturn is an invitation to acquire shares of compelling enterprises at a deep discount. It's akin to buying winter jackets in the summer at bargain rates. Yes, they may be last year's fashion and they're not relevant at the moment. Eventually, though, they'll be worth their weight in gold. On the other hand, some companies may be doomed, which brings us to stocks to sell. It's a difficult concept to discuss because of the hard emotions involved. I'm going to tread carefully as a re ...

Core Insights - The article highlights the significance of bargain shopping, revealing that 85% of shoppers engage in it for the thrill of finding deals, while 62% find it therapeutic [4] - Big Lots, Inc. is launching new initiatives during National Bargain Hunting Week, including daily "Bargain of the Day" promotions featuring discounts of 20% to 75% on various product categories [3][4] Company Initiatives - Big Lots is celebrating National Bargain Hunting Week from August 12-18 with a series of new bargain-focused initiatives [2][3] - The company will introduce a daily "Bargain of the Day" featuring newly sourced closeouts, overstocks, and liquidations across multiple categories [3] - Shoppers can join BIG Rewards for free to receive updates on daily bargains [3] Consumer Behavior - A survey conducted by Big Lots found that 69% of shoppers engage in bargain shopping out of habit, with top merchandise categories including apparel (84%), pantry items (78%), seasonal products (78%), décor (75%), furniture (62%), and electronics (60%) [4] - The majority of shoppers (80%) regularly shop for pantry bargains at 2-3 retailers within 20 miles of their home, with 54% making 2-3 trips per month for pantry essentials [5] Market Position - Big Lots, Inc. is positioned as one of America's largest off-price retailers, offering a wide range of products for the home at competitive prices [6] - The company sources its bargains through creative methods such as closeouts, overstocks, and manufacturer liquidations [6]

Store Closures and Financial Adjustments - The company has increased the number of permitted store closures to a maximum of 315, up from the previously allowed 150, as part of amendments to its credit agreement and term loan facility [1] - The credit agreement's aggregate commitments were reduced by $100 million to $800 million, and the borrowing interest rate was increased by 50 basis points [2] - The company is taking aggressive actions to address underperforming stores, including closing certain locations, as part of its strategy to build a stronger business [2][3] Company Strategy and Performance - The company is focused on returning to its roots, owning the bargain space, and delivering unmistakable value to customers [4] - Big Lots has identified five key actions: owning bargains, communicating unmistakable value, increasing store relevance, winning customers for life through omnichannel efforts, and driving productivity [5] - The company aims to drive positive comparable sales growth in the latter part of the year and into 2025, while maintaining year-over-year gross margin rate improvements [5] Financial and Market Performance - Shares of Big Lots increased by over 21% on Wednesday but remain down nearly 86.5% from the start of the year [5] - The company had previously indicated 35 to 40 store closures and three openings expected this year, while also expressing substantial doubt about its ability to continue due to inflation-related pullbacks in consumer spending [4]

Core Viewpoint - Big Lots is facing significant financial challenges, leading to plans to close up to 315 stores across nearly three dozen states due to high inflation impacting customer purchasing power [1][5]. Group 1: Store Closures - The company initially planned to close up to 150 stores, but this number has now doubled to potentially 315 stores due to ongoing financial difficulties [2]. - Big Lots has identified 293 specific locations for closure, with the highest numbers in California (73), Arizona (21), Washington State (18), Florida (25), and Ohio (8) [5]. Group 2: Financial Performance - Big Lots reported a 10% decline in first-quarter sales compared to the previous year [4]. - The company's long-term debt has increased by $72.2 million, raising concerns about its ability to repay creditors and continue operations [4][5]. Group 3: Economic Environment - The company cited "elevated inflation" as a key factor negatively affecting customer shopping behavior [5]. - The broader retail environment is challenging, with other retailers like Walgreens and CVS also announcing significant store closures [6][7].

Market Overview - The current market conditions indicate potential turbulence, prompting a review of investment portfolios, particularly in the communication, technology, and consumer discretionary sectors [1][2][3] Technology Sector - Technology stocks are experiencing declines despite the hype around AI and innovations, indicating vulnerabilities in this sector [2][3] - Snowflake (NYSE:SNOW) reported a 34% year-over-year increase in product revenue, reaching $790 million in Q1, but faces revenue variability and forecasting challenges [7][8] - Snowflake's operating margin is projected to drop to 3% for fiscal 2025 due to increased costs from AI investments, raising concerns about financial pressure and growth sustainability [8][9] Consumer Discretionary Sector - The consumer discretionary sector is sensitive to economic slowdowns, relying heavily on individual spending power [2][3] - Big Lots (NYSE:BIG) experienced a 9.9% decline in comparable sales in Q1, reflecting broader issues in customer attraction and retention, with a revenue drop of approximately $100 million [10][11] - Weak sales at Big Lots indicate challenges in consumer sentiment and store traffic, raising concerns about the company's growth strategy and financial stability [11] Company-Specific Challenges - Trump Media & Technology (NASDAQ:DJT) reported a significant operating loss of $327.6 million in Q1 2024, primarily due to non-cash expenses, highlighting severe financial challenges [4][5][6] - The company's revenue for Q1 2024 was only $770,500, indicating difficulties in scaling its business model despite its public debut [5][6]

In the volatile stock market, understanding when and what to sell is equally vital as knowing when and what to buy. Here, the focus is on three beaten-down stocks to sell due to their fundamentals. These fundamentals can point to a potential downturn when the market punishes weaknesses. The first company, a leader in systems software, shows impressive subscription revenue growth. However, sustaining this high growth rate is increasingly challenging due to market saturation. As the base revenue grows, mainta ...

Meanwhile, the second company is a leader in the cloud computing space. Rising GPU-related costs associated with its AI initiatives are eroding its profitability margins despite robust revenue growth. Finally, the third company is a retail chain, a top brand in discount merchandise. It faces declining comparable sales and profitability, reflecting softer consumer sentiment and economic pressures. Uncovering these companies' fundamental weaknesses and market adversities minimizes risks and preserves capital. ...