Bank of America's Jason Haas maintains an Underperform rating on Big Lots with a $23 price target.
Jonathan Ramsden will replace Timothy Johnson. Ramsden's background includes CFO of clothing apparel retailer Abercrombie & Fitch Co. (NYSE: ANF) from 2008 to 2014, COO from 2014 to 2016 and was CFO of global marketing services group TBWA Worldwide.
The company maintained its second-quarter EPS at 35 cents to 45 cents on a low-single-digit comp. The fact that management reiterated its guidance is a "positive" but second-quarter results could prove to be "low quality." Specifically, Big Lots ended the first quarter with a 10% increase in inventory and promotional activity so far in the second quarter look to be elevated.
Haas said the appointment of a new CFO has little impact on Big Lots' outlook as management's emphasis on home furnishing within store remodels won't be enough to make up for losses in other categories. In fact, a change of management at this time could "add execution risk" to the outlook.
Shares of Big Lots were trading higher by 3% at $28.61 Wednesday afternoon.
Tempur Sealy Reconnects With Mattress Firm, Expands Big Lots Agreement
Big Lots Hit With Big Downgrade
Photo credit: Mike Kalasnik from Fort Mill via Wikimedia Commons
Latest Ratings for BIG
View More Analyst Ratings for BIG
View the Latest Analyst Ratings
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.