Big Lots, Inc. · OTC:BIGGQ
Big Lots — Q4 2023 Earnings Presentation
22 slides from Big Lots's earnings presentation, Mar 12, 2024
Slide 1: Quarterly Results Presentation Fourth Quarter 2023
QUARTERLY RESULTS PRESENTATION Fourth Quarter 2023
Slide 2: Forward-Looking Statements
Q4 | 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 words
Slide 3: CEO Comment
Q4 | 2023 | 3 CEO COMMENT For the third quarter in a row, we did what we said we would do, and despite a challenging macroeconomic environment and well documented weather challenges in January, we finished the year in a much better place than where we started. That said, there’s a lot of work to do
Slide 4: Fourth Quarter Results
FOURTH QUARTER RESULTS
Slide 5: Big Lots at a Glance
Q4 | 2023 | 5 BIG LOTS AT A GLANCE Strong Omnichannel Capabilities Diversified Category Mix National Store Footprint 1,392 Stores in 48 States Industry-leading delivery options, easy checkout, and multiple payment types to win customers for life 23% 19% 17% 14% 15% 12% Furniture Food Soft Home Consu
Slide 6: Fourth Quarter Summary
Q4 | 2023 | 6 FOURTH QUARTER SUMMARY Inline with Guidance Inline with Guidance, Up 170bps vs. LY -17.0% Inventory vs. LY Inline with Guidance, Strong turn improvement -3.5% Adjusted operating expense1 vs. LY Inline with Guidance -8.6% Comps 38.0% Gross margin 1 Adjusted Operating Expenses are compri
Slide 7: Q4 2023 Comp Sales by Category
Q4 | 2023 | 7 Q4 2023 COMP SALES BY CATEGORY -18% -16% -14% -12% -10% -8% -6% -4% -2% 0% Hard Home Seasonal Soft Home Food Consumables Furniture Total -17% -14% -9% -8% -4% -4% -9% Significant Sequential Improvements Relative to Q3 in Furniture/Soft Home Note: In the Q4 2023, we realigned our mercha
Slide 8: Year-over-Year Inventory Reduction
Q4 | 2023 | 8 YEAR-OVER-YEAR INVENTORY REDUCTION Inventory Managed Down More than Q4 Sales -7.3% -18.8% -15.2% -12.5% -17.0% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Slide 9: Adjusted Q4 2023 Income Statement
Q4 | 2023 | 9 ADJUSTED Q4 2023 INCOME STATEMENT Q4 2023 Q4 2022 Change vs. 2022 Net Sales $1,432,484 $1,543,113 (7.2%) Gross Margin 544,443 560,901 Gross Margin Rate 38.0% 36.3% 170 bps Adjusted Operating Expenses(1)(2) 543,380 563,049 Adjusted Operating Expense Rate(2) 37.9% 36.5% 140 bps Adjusted
Slide 10: Adjusted FY 2023 Income Statement
Q4 | 2023 | 10 ADJUSTED FY 2023 INCOME STATEMENT FY 2023 FY 2022 Change vs. 2022 Net Sales $4,722,099 $5,468,329 (13.6%) Gross Margin 1,686,611 1,913,503 Gross Margin Rate 35.7% 35.0% 70 bps Adjusted Operating Expenses(1)(2) 2,029,300 2,123,454 Adjusted Operating Expense Rate(2) 43.0% 38.8% 420 bps
Slide 11: Capital Allocation
Q4 | 2023 | 11 CAPITAL ALLOCATION *Net liquidity is defined as ABL Credit Facility availability, net of covenant-based borrowing limitations, plus Cash and Cash Equivalents. ~$60M FY2024 CAPEX $900M ABL Credit Facility Up to $200M Monetizable Assets Inline with or somewhat below FY 2023 spend Availa
Slide 12: Guidance
GUIDANCE
Slide 13: Q1 2024 Guidance
Q4 | 2023 | 13 Q1 2024 GUIDANCE SG&A REDUCTION COMP SALES GROSS MARGIN IMPROVEMENT Down low single-digit range, inclusive of sale/leaseback Significant improvement versus last year, up between 200- 250 basis points Down mid-single-digit range; continued sequential improvement
Slide 14: Key Actions
5 KEY ACTIONS 1. Own bargains, with 75% penetration by the end of 2024; within that, an expanded assortment of extreme bargains 2. Communicate unmistakable value 3. Increase store relevance NOSDALL ME 4. Win customers for life with our og omnichannel efforts 5. Drive productivity
Slide 15: Project Springboard
Q4 | 2023 | 15 PROJECT SPRINGBOARD Cumulative benefit of ~$175M 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 $200M+ Bottom-line opportunities ~40% of s
Slide 16: NEW YORK
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Slide 17: Q4 Wrap Up
Q4 | 2023 | 17 Q4 WRAP UP • Comparable sales decline of 8.6% in Q4, in line with our guidance range; GAAP EPS of -$1.05, with adjusted EPS loss of -$0.28 due to year-over-year sales decline and continued cost pressures • Successfully reduced inventory, down more than sales • Comps will continue to i
Slide 18: Appendix
APPENDIX
Slide 19: Fourth Quarter 2023 GAAP to Non-GAAP Reconciliation
Q4 | 2023 | 19 FOURTH QUARTER 2023 GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except for earnings per share) The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate
Slide 20: Fourth Quarter 2022 GAAP to Non-GAAP Reconciliation
Q4 | 2023 | 20 FOURTH QUARTER 2022 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 gai
Slide 21: FY 2023 GAAP to Non-GAAP Reconciliation
Q4 | 2023 | 21 FY 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 on sale of
Slide 22: FY 2022 GAAP to Non-GAAP Reconciliation
Q4 | 2023 | 22 FY 2022 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 on sale of