Big Lots Inc (NYSE:BIG) stock was down almost 10% in premarket after it revealed an unexpected disappointment for fourth quarter sales.
The discount retailer reported US$104.8mln of net income for the three months to February 3, which equates to US$2.46 per share - up from US$90.1mln or US$1.99 per share in the corresponding quarter of the preceding year.
Divi hiked by 20%
Revenue increased to US$1.64bn, up from US$1.58bn, and it was short of analysts' expectations (for US$1.66bn).
Big Lots tried to soften the blow, increasing its dividend by 20% to 30 US cents per share, up from 25 US cents and it also revealed plans for a US$100mln share buyback programme.
On Wall Street, Big Lots shares fell US$5.18 or 9.6% to trade at US$49.