Financial Data and Key Metrics Changes - Q1 net sales were $1.01 billion, a 10.2% decrease compared to $1.12 billion a year ago, driven by a comparable sales decrease of 9.9% [31] - The gross margin rate for the quarter was 36.8%, up 190 basis points year-over-year, primarily due to reduced markdowns and benefits from Project Springboard [11] - Adjusted operating margin for the quarter was negative 11.9%, with interest expense increasing to $12 million from $9.1 million a year ago [12][31] - Total ending inventory cost was down 12.7% year-over-year, driven by lower on-hand units and average unit cost [13] Business Line Data and Key Metrics Changes - Seasonal comps decelerated relative to Q4, particularly in high-ticket discretionary items like patio furniture and gazebos, while core items and seasonal assortments performed positively [5] - The toy category saw nearly a 50% increase in sales in April, driven by the Hearthsong closeout deal [6] - Grocery SKU count increased by 150%, and personal care extreme value SKU count increased sevenfold year-over-year [7] Market Data and Key Metrics Changes - Comp sales trends were down 9.9% in Q1, missing guidance due to volatility in consumer sentiment and weather impacts [10][99] - The company expects sequential comp sales improvement in Q2, projecting a negative mid-to-high single-digit range [14] Company Strategy and Development Direction - The company is focused on five key actions: owning bargains, communicating unmistakable value, increasing store relevance, winning customers for life, and driving productivity [101] - The goal is to achieve 75% bargain penetration and 50% extreme bargain penetration by year-end [81][108] - Project Springboard is expected to deliver $185 million in cumulative savings by year-end, up from a previous target of $175 million [17][83] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for Q2, noting improvements in sales trends and expectations for gross margin rate improvement [39][61] - The consumer environment remains challenging, particularly for lower-income households, but the company is focused on managing through the cycle [79][99] - Management highlighted the importance of extreme bargains in driving sales and improving consumer perceptions [102][108] Other Important Information - The company ended Q1 with $289 million in net liquidity, an increase from $254 million in Q4 [86] - The company is implementing a simplified store operation strategy to enhance efficiency and customer experience [22][83] Q&A Session Summary Question: Can you quantify category performance between bargains, extreme bargains, and the rest? - Management noted that extreme bargain penetration is deepening across all categories, with positive comps in upholstery furniture driven by extreme bargains [41][42] Question: How do you view supply for the remainder of the year? - The closeout rate for extreme bargains is at 28%, the highest in nearly a decade, with no signs of slowing down [53][75] Question: Can you elaborate on gross margin improvement throughout the year? - Management expects gross margin rate improvement to accelerate from Q1 to Q2, projecting at least 300 basis points of improvement in Q2 [65] Question: Did you witness any changes in core customer purchasing behavior? - The core customer, particularly lower-income households, has been pulling back on large discretionary items, but there are signs of normalization in Q2 [68][72]

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Ahead of this earnings release, the estimate revisions trend for Big Lots: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the curr ...

Q1 comparable sales decline due to challenging consumer environment; gross margins significantly improved year-over-year and continued reductions in adjusted operating expenses Q1 2024 Earnings (loss) per diluted share – as reported ($6.99) Adjustment to exclude net loss associated with impairment charges, fees related to Project Springboard, and distribution center closure costs(1) $2.48 Earnings (loss) per diluted share – adjusted basis ($4.51) Q1 GAAP EPS loss of $6.99; adjusted EPS loss of $4.51 Expect ...

While it's always fun to see the ideas on your buy list perform well, long-term success is dependent on recognizing stocks to sell. No, it's often not a comfortable topic to broach. However, holding onto losing enterprises indefinitely could end up hurting your portfolio badly. At the end of the day, everyone in the market is looking out for themselves. In that sense, there's really no rational reason to be loyal. That commitment will usually not be reciprocated if the shoe were on the other foot. So, think ...

Big Lots (BIG) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on June 6. On the o ...

Finding possibilities and possible hazards is equally important when making investments. Here, three stocks carry dangers that should be avoided before June to protect the portfolios. The first is a major participant in the retail industry, and its recent financial performance shows its difficulties. The company's problems, which include a sharp fall in sales year over year and increasing net losses, point to fundamental problems that may impede its future growth. The second company's financial trajectory r ...

Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is America's Discount Home Store, operating more than 1,300 stores in 48 states, as well as an ecommerce store with expanded fulfillment and delivery capabilities. The Company's mission is to help customers "Live Big and Save Lots" by offering bargains to brag about on everything for their home, including furniture, décor, pantry essentials, kitchenware, pet supplies, and more. For more information about the company or to find the store nearest you ...

Since the onset of the Covid-19 pandemic, the retail industry has gone through tremendous volatility. Initially, there was a boom effect for many retailers. People were stuck at home with money to spend. Unprecedented government stimulus paved the way for record consumer spending. And with entertainment venues and travel shut down, people spent more than ever on material goods. But things are changing and investors need to pay attention to which retail stocks to sell. Retail sales have started to slump acro ...

Boston, April 24, 2024 (GLOBE NEWSWIRE) -- Gordon Brothers, the global asset experts, has agented a $200 million delayed draw term loan for Big Lots Inc. The U.S. home discount retailer of general merchandise will use the loan's delayed draw feature to execute on strategic initiatives with the remaining amount to draw upon for available working capital and flexibility as needed. "Having established a working relationship with Big Lots over the last few years, we combined our flexible financial structure wit ...

Enhances ability to pursue extreme bargain deals and unmistakable value for consumers as part of its five key actions COLUMBUS, Ohio, April 18, 2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG), America's Discount Home Store, announced today it has increased its borrowing capacity by up to $200 million with a new "first in, last out" term loan facility (the "FILO Term Loan Facility") through 1903P Loan Agent, LLC, an affiliate of Gordon Brothers Capital. The FILO Term Loan Facility significantly enhances the ...