Big Lots, Inc. · OTC:BIGGQ
Big Lots — Q1 2024 Earnings Presentation
19 slides from Big Lots's earnings presentation, Jun 11, 2024
Slide 1: Quarterly Results Presentation First Quarter 2024
QUARTERLY RESULTS PRESENTATION First Quarter 2024
Slide 2: Forward-Looking Statements
Q1 | 2024 | 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 words
Slide 3: CEO Comment
Q1 | 2024 | 3 CEO COMMENT While we made substantial progress on improving our business operations in Q1, we missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items. We remain focused on managing through th
Slide 4: First Quarter Results
FIRST QUARTER RESULTS First Quarter 2024
Slide 5: Big Lots at a Glance
Q1 | 2024 | 5 BIG LOTS AT A GLANCE Strong Omnichannel Capabilities Diversified Category Mix National Store Footprint 1,390 Stores in 48 States Industry-leading delivery options, easy checkout, and multiple payment types to win customers for life 29% 14% 15% 17% 16% 9% Furniture Food Soft Home Consum
Slide 6: First Quarter Summary
Q1 | 2024 | 6 FIRST QUARTER SUMMARY Impacted by challenging consumer environment Up 190bps vs. LY -12.7% Inventory vs. LY In line with guidance, continued turn improvement -3.6% Adjusted operating expense1 vs. LY Ahead of guidance -9.9% Comps 36.8% Gross margin 1 Adjusted Operating Expenses are comp
Slide 7: Q1 2024 Comp Sales by Category
Q1 | 2024 | 7 Q1 2024 COMP SALES BY CATEGORY -16% -14% -12% -10% -8% -6% -4% -2% 0% Seasonal Hard Home Soft Home Food Consumables Furniture Total -15% -14% -11% -10% -8% -6% -10% Comp Sales Impacted by Soft Consumer Environment Note: In the Q4 2023, we realigned our merchandise categories and elimin
Slide 8: Year-over-Year Inventory Reduction
Q1 | 2024 | 8 YEAR-OVER-YEAR INVENTORY REDUCTION Inventory Managed Down More than Q1 Sales -18.8% -15.2% -12.5% -17.0% -12.7% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Slide 9: Adjusted Q1 2024 Income Statement
Q1 | 2024 | 9 ADJUSTED Q1 2024 INCOME STATEMENT Q1 2024 Q1 2023 Change vs. 2023 Net Sales $1,009,112 $1,123,477 (10.2%) Gross Margin 371,699 392,469 Gross Margin Rate 36.8% 34.9% 190 bps Adjusted Operating Expenses(1)(2) 491,848 510,455 Adjusted Operating Expense Rate(2) 48.7% 45.4% 330 bps Adjusted
Slide 10: Capital Allocation
Q1 | 2024 | 10 CAPITAL ALLOCATION *Net liquidity is defined as ABL Credit Facility availability and FILO Term Loan availability, net of covenant-based borrowing limitations, plus Cash and Cash Equivalents. ~$60M FY2024 CAPEX Guidance $900M ABL Credit Facility Increased Borrowing Capacity by Up to $2
Slide 11: Guidance Second Quarter 2024
GUIDANCE Second Quarter 2024
Slide 12: Q2 2024 Guidance
Q1 | 2024 | 12 Q2 2024 GUIDANCE SG&A REDUCTION COMP SALES GROSS MARGIN IMPROVEMENT Down low to mid-single-digit range, inclusive of sale/leaseback expense Significant improvement versus last year, up by at least 300 basis points Down mid to high-single- digit range; sequential improvement
Slide 13: Key Actions
5 KEY ACTIONS 1. Own bargains, with 75% penetration by the end of 2024; within that, 50% penetration of extreme bargains 2. Communicate unmistakable value 3. Increase store relevance MEMORIAL DAY SALE 4. Win customers for life : | DAY DEALS TODAY ONLY 5. Drive productivity
Slide 14: Project Springboard
Q1 | 2024 | 14 PROJECT SPRINGBOARD Raising cumulative run rate target to $185M (vs. ~$175M previously) by end of 2024 ~40% of savings in other gross margin items Inventory optimization, marketing, pricing & promotions ~20% of savings in SG&A Store & field operations, supply chain, general office $20
Slide 15: Wrap-Up
WRAP-UP
Slide 16: Q1 Wrap Up
Q1 | 2024 | 16 Q1 WRAP UP • Comparable sales decline of 9.9% in Q1, impacted by challenging consumer environment; GAAP EPS of -$6.99, with adjusted EPS loss of -$4.51 due to year-over-year sales decline and continued cost pressures • Successfully reduced inventory, down more than sales • Comps expec
Slide 17: Appendix
APPENDIX
Slide 18: First Quarter 2024 GAAP to Non-GAAP Reconciliation
Q1 | 2024 | 18 FIRST QUARTER 2024 GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except for earnings per share) The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax expen
Slide 19: First Quarter 2023 GAAP to Non-GAAP Reconciliation
Q1 | 2024 | 19 FIRST QUARTER 2023 GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except for earnings per share) The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain