Slide 1: Quarterly Results Presentation Fourth Quarter 2022
Q4 | 2022 | 1 QUARTERLY RESULTS PRESENTATION FOURTH QUARTER 2022
Slide 2: Forward-Looking Statements
Q4 | 2022 | 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: Fourth Quarter Results, Outlook, Wrap-Up, Appendix
Q4 | 2022 | 3 FOURTH QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 4: CEO Comment
Q4 | 2022 | 4 “Despite the extremely difficult consumer environment throughout 2022, we’ve taken action to strengthen and transform our business model. We have made sequential progress to improve our margins, tightly manage expenses, and right-size our inventories over the last few quarters.” ”I am
Slide 5: Big Lots at a Glance
Q4 | 2022 | 5 19% 17% 14%14% 13% 12% 11% Furniture Seasonal The Lot, Apparel, Electronics, etc. Hard Home Food Soft Home Consumables Chart based on Q4 2022 sales Diversified Category Mix National Store Footprint Industry-leading delivery options, easy checkout, multiple payment types in-store and on
Slide 6: Fourth Quarter Highlights
Q4 | 2022 | 6 In line With Guidance 230 bps Improvement vs. Q3 $1.15B Inventory at the end of Q4 Down 7.3% vs. LY vs. up 5.3% in Q3 YOY -2% Adjusted operating expense1 vs. LY Better than expected vs. Guidance -13.0% Comps 36.3% Gross margin FOURTH QUARTER HIGHLIGHTS 1 Adjusted Operating Expenses are
Slide 7: Q4 2022 Comp Sales by Category
Q4 | 2022 | 7 Q4 2022 COMP SALES BY CATEGORY Furniture Sales Impacted by Soft Industry Demand and Supply Chain Disruption Furniture Soft Home Hard Home Consumables The Lot, Apparel, Electronics Seasonal Food Total -28% -17% -12% -9% -6% -5% -3% -13%
Slide 8: Inventory Reduction Efforts Successful
Q4 | 2022 | 8 INVENTORY REDUCTION EFFORTS SUCCESSFUL 48.5% 22.8% 5.3% -7.3% Q1 Q2 Q3 Q4 2022 YOY Inventory Growth
Slide 9: Adjusted Q4 2022 Summary Income Statement
Q4 | 2022 | 9 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating (Loss) Profit(2) Adjusted Operating (Loss) Profit Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED Q4 2022 SUMM
Slide 10: Adjusted Full Year 2022 Summary Income Statement
Q4 | 2022 | 10 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating (Loss) Profit(2) Adjusted Operating (Loss) Profit Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED FULL YEAR 2
Slide 11: Capital Allocation
Q4 | 2022 | 11 $159M FY2022 CAPEX CAPITAL ALLOCATION $0.30 Quarterly Dividend(1) ~$48M Proceeds from sale of assets Lower than guidance of $170M Approximate 7.1% yield (as of January 28, 2023) Expect further proceeds from asset monetization efforts in 2023 (1)The payment of future dividends will be
Slide 12: Fourth Quarter Results, Outlook, Wrap-Up, Appendix
Q4 | 2022 | 12 FOURTH QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 13: Q1 2023 Outlook
Q4 | 2022 | 13 COMP SALES GROSS MARGIN IMPROVEMENT SG&A COST REDUCTION Down low to mid-teens Sequential improvement vs. Q4, in to the high-30s range Incremental structural savings over $70 million for FY 2023 Q1 2023 OUTLOOK
Slide 14: Five Key Actions
Q4 | 2022 | 14 FIVE KEY ACTIONS • Own bargains and treasures, achieving two-thirds penetration by the end of 2023 • Communicate unmistakable value to customers through comparable value ticketing, bargain end-caps, and targeted marketing • Increase store relevance by leveraging our opportunity in rur
Slide 15: Fourth Quarter Results, Outlook, Wrap-Up, Appendix
Q4 | 2022 | 15 FOURTH QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 16: Q4 Wrap-Up
Q4 | 2022 | 16 Q4 WRAP-UP • Comparable sales decline of 13% in Q4, in line with guidance • Q4 adjusted EPS loss of $0.28 due to year-over-year sales decline and continued cost pressures • Successfully reduced inventory to appropriate levels • Comps down in the low to mid-teen range in Q1; focused on
Slide 17: Fourth Quarter Results, Outlook, Wrap-Up, Appendix
Q4 | 2022 | 17 FOURTH QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 18: Fourth Quarter 2022 GAAP to Non-GAAP Reconciliation
Q4 | 2022 | 18 FOURTH QUARTER 2022 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjuste
Slide 19: Fourth Quarter 2021 GAAP to Non-GAAP Reconciliation
Q4 | 2022 | 19 FOURTH QUARTER 2021 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjuste
Slide 20: Full Year 2022 GAAP to Non-GAAP Reconciliation
Q4 | 2022 | 20 FULL YEAR 2022 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjusted net
Slide 21: Full Year 2021 GAAP to Non-GAAP Reconciliation
Q4 | 2022 | 21 FULL YEAR 2021 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjusted net