Slide 1: Quarterly Results Presentation Fourth Quarter 2021
Q4 | 2021 | 1 QUARTERLY RESULTS PRESENTATION FOURTH QUARTER 2021
Slide 2: Forward-Looking Statements
Q4 | 2021 | 2 FORWARD-LOOKING STATEMENTS Certain statements in this release 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 words “ant
Slide 3: Fourth Quarter Results, Operation North Star Update, Q1 2022 Outlook
Q4 | 2021 | 3 FOURTH QUARTER RESULTS OPERATION NORTH STAR UPDATE Q1 2022 OUTLOOK
Slide 4: CEO Comment
Q4 | 2021 | 4 CEO COMMENT Commenting on today’s results announcement, Bruce Thorn, President and CEO of Big Lots stated, “We have much to be excited about as we enter 2022. Our new store openings are proceeding as planned, our in-stock levels are improving, and our productivity initiatives continue
Slide 5: At a Glance
Q4 | 2021 | 5 RANKED 449TH in the Fortune 500 in 2020 ~22,900 SELLING SQ FT per store 22 MILLION Rewards members 9.5% CAGR over last 5 years >5% eComm Penetration eComm Sales 3.5x vs 2019 $6.15 BILLION Fiscal 2021 sales 1,431 Stores across 47 states AT A GLANCE
Slide 6: Fourth Quarter 2021 Highlights
Q4 | 2021 | 6 Down 2.3% to 2020 Lower than guidance due to adverse shrink $1.63 Earnings per Diluted Share 32% Increase in Ending Inventory Continued improvement in our in-stock levels 5.4% 2-Year Comp 37.3% Gross Margin Rate FOURTH QUARTER 2021 HIGHLIGHTS $1.75 EPS on an adjusted (non-GAAP) basis(1
Slide 7: Q4 2021 Sales Composition
Q4 | 2021 | 7 Q4 2021 SALES COMPOSITION 2021 vs 2019 Comp sales = (1 + TY Comp) * (1 + LY comp) - 1 2-Year Comp Growth Across Most Categories, Despite January Headwinds 23% 12% 13%15% 10% 14% 13% Furniture Food Soft Home Seasonal Consumables Hard Home The Lot, Apparel, Electronics, etc. Well Balance
Slide 8: Summary Income Statement – Q4
Q4 | 2021 | 8 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating Profit(2) Adjusted Operating Profit Rate(2) Adjusted Diluted Earnings Per Share(2) Diluted Weighted Average Shares SUMMARY INCOME STATEMENT – Q4 ($ in thousa
Slide 9: Summary Income Statement – Full Year
Q4 | 2021 | 9 Net Sales Adjusted Gross Margin(2) Adjusted Gross Margin Rate(2) Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating Profit(2) Adjusted Operating Profit Rate(2) Adjusted Diluted Earnings Per Share(2) Diluted Weighted Average Shares SUMMARY INCOME STA
Slide 10: Capital Allocation
Q4 | 2021 | 10 2021 Capital expenditures Shares repurchased during Q4 at an average cost of $43.90 per share $0.30 Quarterly Dividend(1) $54 Million Cash on hand, with approximately $620 million in total liquidity $161 Million 2.1 Million CAPITAL ALLOCATION Approximate 3% yield (as of January 29, 20
Slide 11: Operation North Star Update
Q4 | 2021 | 11 FOURTH QUARTER RESULTS OPERATION NORTH STAR UPDATE Q1 2022 OUTLOOK
Slide 12: Operation North Star Multi-Year Growth Plan
Q4 | 2021 | 12 OPERATION NORTH STAR IS OUR MULTI-YEAR TRANSFORMATIONAL GROWTH AND VALUE-CREATION PLAN LAUNCHED IN 2019 FUND ENABLE GROW Store count growth Sales productivity eCommerce acceleration Brand activation and customer growth Pricing and COGS program Promos and markdowns Shrink and loss redu
Slide 13: Our Runway for Growth
Q4 | 2021 | 13 OUR RUNWAY FOR GROWTH… 500+ Potential new store locations $1.5-$2B Opportunity through new store growth $1B+ Opportunity to improve productivity 15%+ Increase in sales productivity potential 10%-15% eCommerce penetration $0.5-$1B+ Opportunity in eCommerce sales growth Note: eCommerce
Slide 14: Sales Productivity Drivers
Q4 | 2021 | 14 SALES PRODUCTIVITY DRIVERS § Optimizing assortments, through category discipline and space planning § Rolling out our Next Gen Furniture Sales model to ~650 stores § Growing Furniture with Broyhill®, modern assortments, and expanded distribution § Winning Seasonal year-round § Expandi
Slide 15: Growing Our Store Footprint
Q4 | 2021 | 15 GROWING OUR STORE FOOTPRINT § Returning to growth after decade of flat store count § 500+ opportunities across established market fill-ins, rural/small town markets, and under-penetrated geographies § Adding 50+ net new stores in 2022 and accelerating after 2022 to 80+ per year § Aver
Slide 16: Driving eComm Acceleration
Q4 | 2021 | 16 DRIVING eCOMM ACCELERATION § Removing friction points with enhanced search, easy checkout and financing options § Increasing website personalization, including product best sellers and new arrivals § Accelerating supplier direct fulfillment and extending our aisle and assortment § Gro
Slide 17: Building a Supply Chain to Support Our Growth
Q4 | 2021 | 17 BUILDING A SUPPLY CHAIN TO SUPPORT OUR GROWTH • Expanding Forward DC network to support bulk product and increase speed to store • Modernizing supply chain technology through investing in Transportation Management, End-to-End Supply Chain Visibility, and Order Management System • Enha
Slide 18: Improving Our Customer Experience
Q4 | 2021 | 18 IMPROVING OUR CUSTOMER EXPERIENCE § Over 36,000 associates that Bring their BIG! everyday, with top quartile NPS § Customer-centric focus that provides a friendly, delightful shopping experience § Updating 800 stores through Project Refresh to deliver a consistent and upgraded brand e
Slide 19: Activating Our Brand
Q4 | 2021 | 19 ACTIVATING OUR BRAND § Creating a community of bargain hunters and treasure seekers § Driving incremental visits from new and existing customers § Increasing brand awareness, consideration, and purchasers § Driving personalized marketing based on our customer data platform Continuing
Slide 20: Q1 2022 Outlook
Q4 | 2021 | 20 FOURTH QUARTER RESULTS OPERATION NORTH STAR UPDATE Q1 2022 OUTLOOK
Slide 21: Q1 2022 Outlook
Q4 | 2021 | 21 COMP SALES NEW STORE SALES GROSS MARGIN SG&A Comp sales up ~10% vs 2019; Down low double digits vs LY due to lapping stimulus Net new and relocated store openings to deliver 130 basis point sales benefit ~50 basis point decline compared to Q1 2021 driven by freight and shrink headwind
Slide 22: Appendices
Q4 | 2021 | 22 APPENDICES
Slide 23: Fourth Quarter 2021 GAAP to Non-GAAP Reconciliation
Q4 | 2021 | 23 FOURTH QUARTER 2021 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating profit, adjusted operating profit rate, adjusted income tax expense, adjusted effective income tax rate, adj
Slide 24: Full Year 2021 GAAP to Non-GAAP Reconciliation
Q4 | 2021 | 24 FULL YEAR 2021 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating profit, adjusted operating profit rate, adjusted income tax expense, adjusted effective income tax rate, adjusted
Slide 25: Full Year 2020 GAAP to Non-GAAP Reconciliation
Q4 | 2021 | 25 FULL YEAR 2020 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted gain on sale of distribution centers, adjusted operating profit rate, adjusted income tax expense, adjusted effective income tax rate, adjusted net income, and adjusted dilu
Slide 26: The above adjusted gross margin, adjusted gross margin rate, adjusted selling and administrative expenses,
Q4 | 2021 | 26 The above adjusted gross margin, adjusted gross margin rate, adjusted selling and administrative expenses, adjusted gain on sale of distribution center, adjusted operating profit, adjusted operating profit rate, adjusted income tax expense, adjusted effective income tax rate, adjusted