3. Big Lots Goes Bust
Big Lots shares sank a hefty 22% Tuesday after the company lowered its same-store sales guidance for the first quarter to "slightly negative" from its previously positive expectation of 2% to 4% growth. The closeout retailer officially releases its first-quarter results on May 23."From a merchandising perspective, furniture, hardlines, and seasonal, particularly lawn and garden, have been our best performing businesses; whereas, consumables and play n' wear, particularly electronics, are currently below expectations for the quarter," said the company. Um, excuse our alliteration guys, but why on earth would you want to elevate your electronics exposure now anyway? Did you learn nothing from the carnage at Circuit City or the bloodshed at Best Buy (BBY)? Heck, look no further than this week's attack on RadioShack (RSH) (Okay, we'll stop with the wordplay) after that company announced an $8 million first-quarter loss Tuesday. RadioShack stock sank 11% on the announcement, falling to an all-time low of $5.30. In its earnings release, RadioShack said 2012 would be "another challenging transition year." Well, the same will be said for Big Lots if it doesn't change its sales strategy immediately and in a very, very big way.