Big Lots Inc. said Chairman and Chief Executive Officer Steven Fishman will retire, amid a report that the U.S. Securities and Exchange Commission is investigating a $10 million sale of stock by the executive.
Fishman, 61, will step down, effective when a successor is named, as he seeks to prioritize time with his family, the Columbus, Ohio-based discount retailer said yesterday. The Wall Street Journal reported yesterday that the SEC started the inquiry in March and that the probe is at an early stage, citing a person familiar with the inquiry.
Fishman, who took over in July 2005, sold the stock on March 20 at a price of about $45, the Journal said. On April 23, the company told investors its sales had slowed, and the following day the stock fell 24 percent to $34.71. Fishman’s trades were properly made at a time when they were allowed, Big Lots hasn’t been contacted by the SEC and Fishman’s stepping down is coincidental to any regulatory interest, the Journal said, citing the company.
The company understands and complies with the rules on stock trading by individuals, Charles Haubiel, executive vice president and chief administrative officer, said on a conference call with analysts yesterday, in response to a request for comment on the Journal’s report.
Big Lots hasn’t received anything from the SEC on Fishman’s stock sales, Andrew Regrut, a company spokesman, said in a telephone interview. He declined to answer other questions and directed inquiries to Haubiel, who didn’t return a call.
Fishman’s departure follows the appointment of a new chief financial officer, chief operating officer and chief merchandising officer in August, amid declining same-store sales this year.
Big Lots fell 3.9 percent to $30.06 at 1:34 p.m. in New York. The shares rose 12 percent yesterday for the largest gain since Feb. 7, 2011, after an earnings forecast surpassed analysts’ projections.
Adjusted profit from continuing operations for fiscal 2012 will be as much as $3.05 a share, up from a previous prediction of as much as $2.95 a share, Big Lots also said in a statement. Analysts projected $2.80, the average of estimates compiled by Bloomberg before the statement.
Sales at U.S. stores open at least 15 months fell 4.6 percent in the quarter ended Oct. 27, the company said. Big Lots reported a third-quarter loss of $6 million, or 10 cents a share, from continuing operations, compared with a profit of $4.2 million, or 6 cents, a year ago.
The company operated more than 1,482 U.S. stores at the end of the period.