Slide 1: Quarterly Results Presentation First Quarter 2023
Q1 | 2023 | 1 QUARTERLY RESULTS PRESENTATION FIRST QUARTER 2023
Slide 2: Forward-Looking Statements
Q1 | 2023 | 2 FORWARD-LOOKING STATEMENTS Certain statements in this presentation are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The wor
Slide 3: First Quarter Results, Outlook, Wrap-Up, Appendix
Q1 | 2023 | 3 FIRST QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 4: Management commentary on macro headwinds and savings
Q1 | 2023 | 4 “Macro-economic headwinds have created significant challenges for us, which are reflected in our results and outlook. But we are confident that these headwinds will abate, and that when they do, we will see a major boost to our business. In particular, we expect furniture and seasonal
Slide 5: Big Lots at a Glance
Q1 | 2023 | 5 28% 16% 10% 7% 15% 12% 12% Furniture Seasonal The Lot, Apparel, Electronics, etc. Hard Home Food Soft Home Consumables Chart based on Q1 2023 sales Diversified Category Mix National Store Footprint Industry-leading delivery options, easy checkout, multiple payment types in-store and on
Slide 6: First Quarter Summary
Q1 | 2023 | 6 Impacted by Economy, Product Shortages, and Weather Down vs. LY Due to Late Quarter Promos and Unfavorable Mix $1.09B Inventory at the end of Q1 Down 18.8% vs. LY Similar to Sales Decline -1.5% Adjusted operating expense1 vs. LY Better than expected vs. Guidance -18.2% Comps 34.9% Gros
Slide 7: Q1 2023 Comp Sales by Category
Q1 | 2023 | 7 Q1 2023 COMP SALES BY CATEGORY Furniture/Seasonal Sales Impacted by Soft Industry Demand, Poor Weather, and Furniture Supply Chain Disruption Furniture Seasonal Soft Home Hard Home Consumables The Lot, Apparel, Electronics Food Total -27% -25% -17% -15% -11% -7% -5% -18%
Slide 8: Inventory Reduction in Line with Q1 Sales
Q1 | 2023 | 8 INVENTORY REDUCTION IN LINE WITH Q1 SALES 48.5% 22.8% 5.3% -7.3% -18.8% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 YOY Inventory Growth (Decline)
Slide 9: Adjusted Q1 2023 Summary Income Statement
Q1 | 2023 | 9 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating Loss (2) Adjusted Operating Loss Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED Q1 2023 SUMMARY INCOME STATEM
Slide 10: Capital Allocation
Q1 | 2023 | 10 ~$80M FY2023 CAPEX CAPITAL ALLOCATION $900M ABL Credit Facility $340M+ Expected Asset Monetization vs. Over $100M previously Net available liquidity of ~$328M* at end of Q1 Expected value relating to sale/leaseback of California DC, corporate HQ building and owned stores *Net liquidit
Slide 11: Outlook
Q1 | 2023 | 11 FIRST QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 12: Q2 2023 Outlook
Q1 | 2023 | 12 COMP SALES GROSS MARGIN IMPROVEMENT COST REDUCTION Down high-teens, similar to Q1 Slight improvement versus last year, in the low-30s range Structural SG&A savings now over $100M for FY 2023 (vs. $70M previously) Q2 2023 OUTLOOK
Slide 13: Additional Bottom-Line Opportunities of $200M+
Q1 | 2023 | 13 ADDITIONAL BOTTOM-LINE OPPORTUNITIES OF $200M+ • Aided by an external partner, identified $200M+ of bottom-line opportunities across gross margin and SG&A over the next 18 months, • Sources of savings include: o Merchandising & Sourcing o Store Operations o Supply Chain o Other G&A •
Slide 14: Five Key Actions
Q1 | 2023 | 14 FIVE KEY ACTIONS 1. Own bargains and treasures, achieving one-third bargains penetration by the end of 2023 2. Communicate unmistakable value to customers through comparable value ticketing, bargain end-caps, and targeted marketing 3. Increase store relevance by leveraging our opportu
Slide 15: Wrap-Up
Q1 | 2023 | 15 FIRST QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 16: Q1 Wrap-Up
Q1 | 2023 | 16 Q1 WRAP-UP • Comparable sales decline of 18% in Q1, impacted by unfavorable economic conditions, poor weather, and furniture product shortages • Q1 adjusted EPS loss of $3.40 due to year-over-year sales decline and continued cost pressures • Successfully reduced inventory approximatel
Slide 17: Appendix
Q1 | 2023 | 17 FIRST QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 18: First Quarter 2023 GAAP to Non-GAAP Reconciliation
Q1 | 2023 | 18 FIRST QUARTER 2023 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted operating loss, adjusted operating loss rate, adjust