Big Lots on the verge of closing hundreds of stores

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Big Lots is set to close hundreds of stores.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching on the street today.

00:04Earnings season is helping to restore order on Wall Street. There are signs, however, of a slowing economy,

00:11especially when it comes to travel and tourism.

00:14Theme Park attendance at Walt Disney fell last quarter and it expects attendance to cool for the remainder of the year.

00:21Airbnb says economic uncertainty is impacting its bookings and quarterly revenue at TripAdvisor came in below

00:29estimates. The state of the labor market will be in focus when new jobless claims data are released Thursday on the heels of July's

00:36surprise spike in unemployment.

00:38In other news, Big Lots is planning a big

00:42downsizing. The discount warehouse retailer is now expected to shut more than 300 locations.

00:48That's way more than the 35 to 40 stores that planned to close just a few weeks ago.

00:53According to a regulatory filing with the Securities and Exchange Commission, the company said quote in

00:592024, the US economy has continued to face macroeconomic challenges, including elevated inflation,

01:05which has adversely impacted the buying power of our customers.

01:09Specifically, Big Lots previously said its core consumers were pulling back on bigger ticket discretionary items.

01:17The accelerated store closure plan comes as Big Lots bleeds cash. It lost

01:23$105 million in the first quarter. Sales during that period tumbled 10%

01:28compared to the same time the prior year. The company will provide more details on a turnaround planned when it reports quarterly results in

01:35September. And that'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittins with The Street.

Category

Transcript

Recommended