Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-08897 BIG LOTS INC (Exact name of registrant as specified in its charter) Ohio 06-1119097 (State or ...

Big Lots, Inc. (NYSE:BIG) Q2 2019 Earnings Conference Call August 30, 2019 8:00 AM ET Â Â Company Participants Andy Regrut - Vice President, Investor Relations Bruce Thorn - President and Chief Executive Officer Lisa Bachmann - EVP, Chief Merchandising and Operating Officer Jonathan Ramsden - EVP, Chief Financial and Administrative Officer Conference Call Participants Brad Thomas - KeyBanc Capital Markets Joseph Feldman - Telsey Advisory Group Paul Trussell - Deutsche Bank Bobby Friedner - Piper Jaffray Chr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-8897 BIG LOTS INC (Exact name of registrant as specified in its charter) Ohio 06-1119097 (State or Other ...

Financial Data and Key Metrics Changes - Total sales for Q1 2019 were $1.296 billion, an increase of 2.2% compared to $1.268 billion in the previous year [30] - Comparable store sales increased by 1.5%, aligning with guidance for low single-digit growth [30] - Adjusted EPS for Q1 was $0.92, exceeding the guidance range of $0.65 to $0.75 [32] - Adjusted gross margin rate was 40.5%, up 10 basis points from the previous year [33] - Adjusted income for the quarter was $37 million, compared to $40 million in the same period last year [32] Business Line Data and Key Metrics Changes - Furniture sales increased by mid-single digits, driven by case goods, upholstery, and mattresses [17] - Soft Home also saw mid-single digit growth, marking 21 consecutive quarters of such performance [21] - Seasonal products experienced mid-single digit growth, with sales accelerating in March and April [22] - Consumables grew by low single digits, while food sales declined due to intense competition [24][25] - Hard Home and Electronics, Toys & Accessories categories saw planned declines as the company shifted focus to more profitable categories [26] Market Data and Key Metrics Changes - The company opened nine new stores and closed six, resulting in a total of 1,404 stores [37] - Inventory levels increased to $927 million, up from $850 million last year, attributed to tariffs and strategic inventory commitments [36] - The e-commerce business had its best quarter since launching, contributing to overall sales growth [15] Company Strategy and Development Direction - The company is focused on the "Store of the Future" initiative, remodeling over 200 stores and opening approximately 50 new stores in this format [54] - The "Operation Northstar" project aims to reposition the business for long-term success through various growth work streams [51] - The company is transitioning its in-store mattress assortments to Sealy, aiming to enhance product quality and customer perception [19][20] - The loyalty program saw an increase to 17.7 million active members, a 16% year-over-year growth [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the delayed income tax refunds negatively impacted Q1 sales but saw a rebound in March and April [89] - The company expects adjusted income for Q2 to be in the range of $0.35 to $0.45 per diluted share, reflecting a cautious outlook due to weather impacts [43] - Management is optimistic about the performance of new stores and the ongoing success of the Store of the Future initiative [96] Other Important Information - The company plans to increase capital expenditures to $77 million for strategic investments, including the Store of the Future and a new distribution center [38] - The board declared a quarterly cash dividend of $0.30 per share, payable on June 28, 2019 [42] Q&A Session Summary Question: Can you provide more color on expenses and the $100 million cost target? - Management expressed satisfaction with Q1 expense performance, noting good control over store operations and other controllable expenses [62][64] Question: What prompted the decision to change the mattress category to Sealy? - The company highlighted the strong brand recognition of Sealy and its innovative products as key reasons for the transition [68][69] Question: How are merchandise categories being evaluated for potential shifts? - Management confirmed a focus on Furniture, Soft Home, and Seasonal categories while also addressing the importance of food and consumables [70][72] Question: What impact do tariffs have on pricing and consumer reaction? - The company acknowledged that tariffs have influenced pricing strategies, but efforts are being made to manage costs and maintain value [74][102] Question: Can you provide an update on the buy online, pickup in store rollout? - The pilot for BOPIS has launched successfully, with expectations for a full rollout by the end of summer [86][87]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 2, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-8897 BIG LOTS, INC. (Exact name of registrant as specified in its charter) Ohio 06-1119097 (State or other ...

Financial Data and Key Metrics Changes - Net sales for Q4 2018 were $1.599 billion, a decrease from $1.641 billion in the previous year, attributed to a lower store count and an extra week of operations in last year's results [22][24] - Comparable store sales increased by 3.1%, exceeding guidance of flat to plus 2% [22][24] - Income for Q4 was $108 million or $2.68 per diluted share, surpassing the previously communicated EPS guidance of $2.20 to $2.40 [23][24] - Gross margin rate for Q4 was 41.2%, a decline of 40 basis points from the previous year [24][25] Business Line Data and Key Metrics Changes - Six out of seven merchandising categories posted positive comps in Q4, with Soft Home leading at high single-digit growth [14][15] - Furniture also saw high single-digit growth across all departments, driven by new assortments and lease-to-purchase business [15] - Consumables achieved low single-digit growth, marking the best quarterly comp in four years, driven by health and beauty and holiday gifting [16] - Food experienced its first positive comp in three years, aided by event-driven assortments [18] Market Data and Key Metrics Changes - Sales trends accelerated in December and January, with both months up comfortably in the mid-single digits [23] - The first year after store remodels showed sales growth in the high single to low double-digit range in major markets [11] Company Strategy and Development Direction - The company is focusing on enhancing its current strategy and launching new initiatives to accelerate sales and reduce costs [32][38] - Key platforms for growth include strengthening the home category, increasing traffic drivers, and focusing on life's occasions [37][40] - The acquisition of Broyhill is expected to enhance the company's furniture offerings and quality perception [38][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales momentum and the impact of tax refund delays on purchasing behavior [67][68] - The company anticipates a low single-digit sales increase for fiscal 2019, with adjusted income expected to decrease by 7% to 12% [47][48] - Management is committed to a $100 million cost reduction over the next three years to fund growth initiatives [51][53] Other Important Information - The company ended fiscal 2018 with $970 million in inventory, a 12% increase per store compared to the previous year [27] - Capital expenditures for fiscal 2018 were approximately $232 million, with plans for $260 million to $270 million in 2019 [28][57] - A quarterly cash dividend of $0.30 per common share was declared, payable on April 5, 2019 [30][59] Q&A Session Summary Question: Can you provide insight on the treasure hunt concept? - Management noted that customers enjoy the treasure aspect more than the hunt, indicating a positive reception to the Store of the Future format [62] Question: How has the delayed tax refund impacted trends? - The delay affected big-ticket purchases, but management remains optimistic about March and April trends [66][68] Question: What contribution did the Store of the Future make to Q4 comps? - The Store of the Future contributed slightly less than a full point to Q4 comps, with expectations for at least a full point in 2019 [70] Question: What are the expectations for SG&A dollars? - SG&A is expected to grow mid to high singles in Q1 and mid-singles for the year, with various factors influencing this growth [72] Question: What categories show the most potential for growth? - Management sees significant opportunities in the home destination and furniture categories, along with traffic drivers in food and consumables [74]