Slide 1: Quarterly Results Presentation First Quarter 2022
Q1 | 2022 | 1 QUARTERLY RESULTS PRESENTATION FIRST QUARTER 2022
Slide 2: Forward-Looking Statements
Q1 | 2022 | 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 “an
Slide 3: First Quarter Results, Outlook, Operation North Star, Wrap-Up
Q1 | 2022 | 3 FIRST QUARTER RESULTS OUTLOOK OPERATION NORTH STAR WRAP-UP
Slide 4: Business has grown significantly over the past two years
Q1 | 2022 | 4 Our business has grown significantly over the past two years as we benefitted not only from home-related spending but from the positive growth fueled by our Operation North Star initiatives. We have greatly improved our customer shopping experience, evidenced by an all-time high Net Pr
Slide 5: Big Lots at a Glance
Q1 | 2022 | 5 29% 17% 13% 12% 11% 9% 9% Furniture Seasonal Food Soft Home Consumables Hard Home The Lot, Apparel, Electronics, etc. Chart based on Q1 2022 sales Broad Category MixNational Store Footprint Easy checkout and multiple payment types in-store and on-line Growing Omnichannel Capabilities 1
Slide 6: First Quarter Highlights
Q1 | 2022 | 6 Down 17% to 2021 With 20% Same-Day Delivery Growth +1.2M New Rewards Members 22 Million Total BIG Rewards Members 85% Record High Net Promoter Score VS 81.5% Q1 2021 2% 3-Year Comp ~7% e-commerce Penetration FIRST QUARTER HIGHLIGHTS
Slide 7: 3-Year Comparable Sales Growth
Q1 | 2022 | 7 Q1 2022 COMP SALES 2022 vs 2019 Comp sales = (1 + TY Comp) * (1 + LY 2 Year Comp) - 1 3-Year Comparable Sales Growth Despite Consumer Spending Pressure in April -11% -10% -4% 4% 4% 24% 42% 2% Lapping Strong Home-Related Spending In 2020 and 2021 1.5% 10.3% 11.3% -17.0% Q1 2019 Q1 2020
Slide 8: Q1 2022 Summary Income Statement
Q1 | 2022 | 8 Net Sales Gross Margin Gross Margin Rate Operating Expenses(1) Operating Expense Rate Operating (Loss) Profit Operating Margin Rate Diluted (Loss) Earnings Per Share Diluted Weighted Average Shares Q1 2022 SUMMARY INCOME STATEMENT ($ in thousands, except for earnings per share) (1) Ope
Slide 9: Capital Allocation
9 $175 Million Annual CAPEX CAPITAL ALLOCATION $0.30 Quarterly Dividend(1) $355 Million Down from initial guidance of $210-$230 million Approximate 3.6% yield (as of April 28, 2022) Liquidity at the end of Q1 (1)The payment of future dividends will be at the discretion of our Board of Directors and
Slide 10: First Quarter Results, Outlook, Operation North Star, Wrap-Up
Q1 | 2022 | 10 FIRST QUARTER RESULTS OUTLOOK OPERATION NORTH STAR WRAP-UP
Slide 11: Quickly Addressing Current Challenges
Q1 | 2022 | 11 QUICKLY ADDRESSING CURRENT CHALLENGES • Right-sizing inventory to pursue more closeout opportunities • Better opening price points • Capitalize on trade-down demand with quality and value assortment Unlocking Sales Opportunities • More targeted and efficient pricing and promotions • R
Slide 12: Q2 2022 Outlook
Q1 | 2022 | 12 COMP SALES NEW STORE SALES GROSS MARGIN FREE CASH FLOW 3-year comps to accelerate to the positive mid-to-high single digits, equating to mid-to-high single digit negative comps versus 2021 Net new and relocated store openings to deliver 150 basis points of growth vs 2021 Promotional a
Slide 13: H2 Outlook
Q1 | 2022 | 13 DRIVING TRAFFIC GROSS MARGIN IMPROVEMENT SG&A COST REDUCTION Better opening price points, more closeout offerings, and capitalizing on trade down opportunities Sequential improvement in each of Q3 and Q4; with Q4 margin approximately in-line vs. prior year quarter Over $70 million in
Slide 14: First Quarter Results, Outlook, Operation North Star, Wrap-Up
Q1 | 2022 | 14 FIRST QUARTER RESULTS OUTLOOK OPERATION NORTH STAR WRAP-UP
Slide 15: CEO Comment
Q1 | 2022 | 15 In the midst of this difficult period, we can’t miss the forest for the trees. While we need to make near-term corrections, we don’t intend to be side-tracked from the tremendous longer-term value-creation opportunity we see ahead of us. Or, most importantly, from our noble purpose to
Slide 16: Operation North Star Multi-Year Growth Plan
Q1 | 2022 | 16 OPERATION NORTH STAR IS OUR MULTI-YEAR TRANSFORMATIONAL GROWTH AND VALUE-CREATION PLAN LAUNCHED IN 2019 FUND ENABLE GROW Store count growth Sales productivity e-commerce acceleration Brand activation and customer growth Pricing and COGS program Promos and markdowns Shrink and loss red
Slide 17: Ambitious Long-Term Financial Targets
17 SALES $8-$10B AMBITIOUS LONG-TERM FINANCIAL TARGETS OPERATING MARGIN 6%-8% ROIC1 20%-25% Defined growth drivers Gross margin expansion and disciplined expense management Accretive investments and ongoing return of capital 1 ROIC defined as trailing 12-month net operating profit after tax divided
Slide 18: First Quarter Results, Outlook, Operation North Star, Wrap-Up
Q1 | 2022 | 18 FIRST QUARTER RESULTS OUTLOOK OPERATION NORTH STAR WRAP-UP
Slide 19: Q1 Wrap-Up
Q1 | 2022 | 19 Q1 WRAP-UP • 3-year comparable sales growth of 2% in Q1, with significant slowdown in April as consumers felt spending pressures • Q1 EPS loss of $0.39 due to year-over-year sales decline and significant cost pressures • 3-year comps for May running up mid-teens as promotions drive co