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Big Lots(BIG) - 2025 Q1 - Quarterly Results
BIGBig Lots(BIG)2024-06-11 21:12

Financial Performance - Q1 2024 net sales totaled 1.009billion,a10.21.009 billion, a 10.2% decrease compared to 1.124 billion in Q1 2023, driven by a 9.9% comparable sales decline[1] - Q1 2024 GAAP EPS loss of 6.99;adjustedEPSlossof6.99; adjusted EPS loss of 4.51, compared to an adjusted EPS loss of 3.40inQ12023[9]−Q12024adjustedoperatinglossimprovedto3.40 in Q1 2023[9] - Q1 2024 adjusted operating loss improved to 192.9 million from 261.2millioninQ12023[23]−AdjustedoperatinglossforQ12024was261.2 million in Q1 2023[23] - Adjusted operating loss for Q1 2024 was (120.1) million, compared to the reported operating loss of (192.9)million,afteradjustmentsforFDCcosts,storeimpairments,andProjectSpringboardfees[42]−AdjustednetlossforQ12024was(192.9) million, after adjustments for FDC costs, store impairments, and Project Springboard fees[42] - Adjusted net loss for Q1 2024 was (132.3) million, compared to the reported net loss of (205.0)million,afteradjustmentsforFDCcosts,storeimpairments,andProjectSpringboardfees[42]−Adjusteddilutedearnings(loss)pershareforQ12024was(205.0) million, after adjustments for FDC costs, store impairments, and Project Springboard fees[42] - Adjusted diluted earnings (loss) per share for Q1 2024 was (4.51), compared to the reported (6.99),afteradjustmentsforFDCcosts,storeimpairments,andProjectSpringboardfees[42]LiquidityandDebt−ThecompanyendedQ12024with(6.99), after adjustments for FDC costs, store impairments, and Project Springboard fees[42] Liquidity and Debt - The company ended Q1 2024 with 289 million of liquidity, including availability under a new 200milliontermloanfacility[9]−Q12024long−termdebtincreasedto200 million term loan facility[9] - Q1 2024 long-term debt increased to 573.8 million from 501.6millioninQ12023[13]−Thecompanyexecutedanew501.6 million in Q1 2023[13] - The company executed a new 200 million term loan facility in Q1 2024, providing additional financial flexibility[30] Gross Margin and Inventory Management - Q1 2024 gross margin improved to 36.8% from 34.9% in Q1 2023, driven by reduced markdown activity and Project Springboard benefits[23] - The company expects Q2 2024 gross margin rate to improve by at least 300 basis points year-over-year[5] - Q1 2024 inventory decreased to 949.9millionfrom949.9 million from 1.087 billion in Q1 2023, reflecting improved inventory management[21] - Inventory at the end of Q1 2024 was 949.9million,a12.7949.9 million, a 12.7% decrease compared to 1.088 billion in Q1 2023, driven by lower on-hand units and average unit cost[32] Project Springboard - The company raised its target for cumulative benefits from Project Springboard to 185millionbyyear−end,upfromtheprevioustargetof185 million by year-end, up from the previous target of 175 million, and is ahead of schedule in realizing these benefits[30] - Adjusted selling and administrative expenses for Q1 2024 were 460.3million,adecreasefromthereported460.3 million, a decrease from the reported 533.0 million after excluding FDC contract termination costs (874k),storeassetimpairmentcharges(874k), store asset impairment charges (68.2 million), and Project Springboard fees (3.6million)[42]−AdjustedsellingandadministrativeexpenserateforQ12024was45.63.6 million)[42] - Adjusted selling and administrative expense rate for Q1 2024 was 45.6%, down from the reported rate of 52.8%, after adjustments for FDC costs, store impairments, and Project Springboard fees[42] - Adjusted operating loss rate for Q1 2024 was (11.9%), compared to the reported rate of (19.1%), after adjustments for FDC costs, store impairments, and Project Springboard fees[42] Sales and Bargain Penetration - The company expects Q2 2024 comp sales to improve sequentially but still be down in the mid to high-single-digit range[5] - The company aims to achieve 75% bargain penetration and 50% extreme bargain penetration by year-end 2024[2] Share Repurchase - The company has 159 million remaining under its December 2021 $250 million share repurchase authorization and did not execute any share repurchases during Q1 2024[33]