Lampert Out at Big Lots, Outlook Remains Iffyhttp://www.fool.com/investing/general/2013/05/31/lampert-out-at-big-lots-outlook-remains-iffy.aspx Michael Lewis
May 31, 2013
Discount big-box retailer Big Lots (NYSE: BIG) managed to satisfy the Street in its recent earnings announcement, even though the numbers shrunk year over year. Moreover, beleaguered retail investor Eddie Lampert dumped his stake in the company, according to the fund's latest SEC filings. Valuation metrics look cheap compared to those of some peers, but what are you buying for the price? To make the call, let's take a look at the company's recent earnings and what lies ahead.
Big Lots ventured into the north with its acquisition of Canadian retailer Liquidation World. Margins shrank slightly, with operating income suffering a 17% decline from the prior year's quarter to $61.7 million. Management sees growth in the Canadian business, and believes it will be a long-term