Slide 1: Second Quarter 2021 Results Investor Presentation
BIG, LOTS SECOND QUARTER 2021 RESULTS Investor Presentation
Slide 2: Forward Looking Statements
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 “anticipate,” “est
Slide 3: Ranked 449th in the Fortune 500
Ranked 449th in the Fortune 500 1,422 Stores across 47 states ~22,700 selling sq ft per store Q2 | 2021 | 3 10% CAGR over last 3 years 210% eComm growth in 2020
Slide 4: Be the BIG difference for a better life
Be the BIG difference for a better life by... ..delivering unmatched value and delight through our surprising products and convenient shopping h ..Duilding a “best places to work" culture | engaging with partners to i innovate & execute ..fewarding shareholders with i top tier returns ‘\ ..doing goo
Slide 5: Gross Margin
39.6% Gross Margin Rate Down 13.2% to 2020 In line with guidance Total demand in excess of Middle of guidance range $70 million Q2 | 2021 | 5
Slide 6: Q2 2021 Sales Composition
Q2 2021 SALES COMPOSITION Strong Two-Year Comp Sales Growth Across Categories Comp Sales 2021 vs 2019 2021 vs 2019 Comp sales = (1 + TY Comp) * (1 + LY comp) - 1 Q2 | 2021 | 6 Well Balanced Category Mix Furniture Seasonal Soft Home Consumables Food m Hard Home wOther
Slide 7: Summary Income Statement - Q2
SUMMARY INCOME STATEMENT - Q2 (S in thousands, except for earnings per share) Q2 2021 Q2 2020 Q22019 Net Sales $1,457,374 $1,644,197 $ 1,252,414 Gross Margin 577,797 683,564 498,320 Gross Margin Rate 39.6% 41.6% 39.8% (200) bps (20) bps Adjusted Operating Expenses(”) 523,947 534,018 465,597 Adjusted
Slide 8: Summary Income Statement - Year-to-Date
SUMMARY INCOME STATEMENT - YEAR-TO-DATE (Sin thousands, except for earnings per share) YTD 2021 YTD 2020 YTD 2019 Net Sales $3,082,926 $3,083,346 $2,548,210 Adjusted Gross Margin”) 1,231,744 1,254,320 1,023,327 Adjusted Gross Margin Rate”) 40.0% 40.7% 40.2% (70) bps (20) bps Adjusted Operating Expen
Slide 9: Capital Allocation
CAPITAL ALLOCATION $0.30 QUARTERLY DIVIDEND* $200-§210 MILLION 2021 projected capital expenditures Approximate 2.1% yield (as of August 25, 2021) Shares repurchased since August 2020 at an average cost of $55.18 per share Cash on hand, with approximately $1 billion in total liquidity ONGOING FOCUS O
Slide 10: Operation North Star
OPERATION NORTH STAR Customer growth Merchandise productivity Store count growth eCommerce conversion * Supply chain investment * Customer experience (stores & online) * Talent and capabilities * Data and technology @ | 2021 | 10 Pricing and COGS program Promos and markdowns Shrink and loss reductio
Slide 11: Our Growth Drivers
OUR GROWTH DRIVERS "Be a BlGioniare” campaign rolling out with 60% of increased transactions from new customers Increased focus on personalized marketing and one-to-one digital communications Consistent growth in Rewards membership Serving “treasure-hunters” across a broad income range Category rein
Slide 12: Breakthrough ad campaign featuring new celebrity BIGionaires
Breakthrough ad campaign featuring new celebrity BlGionaires, starting with Retta (Parks & Recreation) and adding Eric Stonestreet (Modern Family) and Molly Shannon (Saturday Night Live) this holiday Culturally relevant omnichannel activation creating a community of bargain hunters and treasure seek
Slide 13: Growing Store Count
Slide 14: Qe
Qe | 2021 | 14
Slide 15: Rollout of two new Forward DCs
Rollout of two new Forward DCs will alleviate pressure on Regional DCs and improve store inventory levels Affordable low-automation and outsourced model to support bulk product Centralized Repack to launch in 2022 - increases flexibility in handling low cubic velocity SKUs Opening “pop-up” bypass DC
Slide 16: Q3 2021 Outlook
Q3 2021 OUTLOOK GROSS MARGIN Mid-single-digit Down approximately Expense dollars Ending inventory up decline vs. 2020, 175 bps to 2020, driven _ slightly up to Q3 2020, around 10% to Q3 but up low-double- by freight charges driven by incremental 2019, with turn digits to 2019 investments in labor im
Slide 17: Gross Margin
GROSS MARGIN
Slide 18: Appendix
BIG, LOTS APPENDIX
Slide 19: Q2 2020 GAAP to Non-GAAP Reconciliation
APPENDIX Q2 2020 GAAP TO NON-GAAP RECONCILIATION Adjustment to (Sin thousands, except for earnings per share) exclude gain on sale of distribution centers and As adjusted Asreported _ related expenses (non-GAAP) Selling and administrative expenses $ 504,000 $ (3,956) $ 500,044 Gain on sale of distri
Slide 20: Q2 2019 GAAP to Non-GAAP Reconciliation
APPENDIX Q2 2019 GAAP TO NON-GAAP RECONCILIATION ($ in thousands, except for earnings per share) Impact to exclude 7 transformational As adjusted As reported restructuring costs (non-GAAP) Selling and administrative expenses $ 455,026 $ (19,452) $ 435,574 Operating profit 13,181 19,452 32,633 Operat
Slide 21: YTD 2020 GAAP to Non-GAAP Reconciliation
APPENDIX YTD 2020 GAAP TO NON-GAAP RECONCILIATION Adjustment to (Sin thousands, except for earnings per share) exclude gain on sale of distribution centers and As adjusted Asreported _ related expenses (non-GAAP) Selling and administrative expenses $ 962,631 $ (3,956) $ 958,675 Gain on sale of distr
Slide 22: YTD 2019 GAAP to Non-GAAP Reconciliation
APPENDIX YTD 2019 GAAP TO NON-GAAP RECONCILIATION (S in thousands, except for earnings per share) Impact to exclude Impact to exclude Adjustment to department exit transformational exclude legal inventory restructuring _ settlement loss As adjusted ‘As reported impairment costs contingencies (non-GA