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Big Lots(BIG) - 2024 Q4 - Annual Results
BIGBig Lots(BIG)2024-03-11 16:00

Sales Performance - Q4 2023 net sales totaled 1.432billion,a7.21.432 billion, a 7.2% decrease compared to 1.543 billion in Q4 2022, driven by an 8.6% decrease in comparable sales[3] - Net sales for the 14 weeks ended February 3, 2024 were 1,432,484million,adecreasefrom1,432,484 million, a decrease from 1,543,113 million in the 13 weeks ended January 28, 2023[43] - The company expects Q1 2024 comp sales to improve to mid-single-digit negative range, with gross margin rate improving by 200-250 basis points compared to the prior year[14] Inventory Management - Inventory at the end of Q4 2023 was 953.3million,a17.0953.3 million, a 17.0% decrease from 1.148 billion in Q4 2022, due to lower on-hand and in-transit inventory[5] - The company reduced inventory by nearly 200millionandmonetizedassetsworthover200 million and monetized assets worth over 300 million in 2023[24] Operating Performance - Q4 2023 GAAP operating loss was 24million,withadjustedoperatingprofitof24 million, with adjusted operating profit of 1 million, marking the first quarter of positive adjusted operating profit since Q4 2021[27] - Full Year 2022 operating loss was 261,500million,withanadjusted(non−GAAP)figureof261,500 million, with an adjusted (non-GAAP) figure of 209,951 million[35] - Q4 2022 operating loss was 8,055million,withanadjusted(non−GAAP)figureof8,055 million, with an adjusted (non-GAAP) figure of 2,334 million[38] - The adjusted operating profit for Q4 2023 was 1.06million,comparedtoareportedoperatinglossof1.06 million, compared to a reported operating loss of 23.77 million, after adjustments for gains on real estate sales and other expenses[51] - The full-year 2023 adjusted operating loss was 342.69million,comparedtoareportedoperatinglossof342.69 million, compared to a reported operating loss of 387.36 million, after adjustments for gains on real estate sales and other expenses[52] Net Loss and Earnings Per Share - Q4 2023 GAAP EPS loss was 1.05,withadjustedEPSlossof1.05, with adjusted EPS loss of 0.28[27] - Full Year 2022 net loss was 210,708million,withanadjusted(non−GAAP)figureof210,708 million, with an adjusted (non-GAAP) figure of 171,858 million[35] - Q4 2022 net loss was 12,463million,withanadjusted(non−GAAP)figureof12,463 million, with an adjusted (non-GAAP) figure of 8,110 million[38] - Net loss for the 14 weeks ended February 3, 2024 was 30,709million,comparedto30,709 million, compared to 12,463 million in the 13 weeks ended January 28, 2023[43] - Adjusted net loss for Q4 2023 was 8.28million,comparedtoareportednetlossof8.28 million, compared to a reported net loss of 30.71 million, after adjustments for various costs and gains[51] - Full-year 2023 adjusted net loss was 329.31million,comparedtoareportednetlossof329.31 million, compared to a reported net loss of 481.88 million, after adjustments for various costs and gains[52] - Adjusted diluted earnings per share for Q4 2023 were -0.28,comparedtoareported−0.28, compared to a reported -1.05, after adjustments for various costs and gains[51] - Full-year 2023 adjusted diluted earnings per share were -11.30,comparedtoareported−11.30, compared to a reported -16.53, after adjustments for various costs and gains[52] Bargain Penetration and Project Springboard - The company achieved over 60% bargain penetration in Q4 2023, exceeding the initial goal of 33%, and expects to grow to 75% penetration in 2024[27] - Project Springboard is on track to deliver a high proportion of the 200million+benefitin2024[27]−Thecompanyexpectstorealizemostofthe200 million+ benefit in 2024[27] - The company expects to realize most of the 200 million+ bottom-line opportunities through Project Springboard in 2024[29] Liquidity and Cash Flow - Net liquidity at the end of Q4 2023 was 254million,withsignificantfreecashflowgeneratedinthequarter[24]−ThecompanyendedQ4fiscal2023with254 million, with significant free cash flow generated in the quarter[24] - The company ended Q4 fiscal 2023 with 46.4 million in Cash and Cash Equivalents and 406.3millioninLong−termDebt,comparedto406.3 million in Long-term Debt, compared to 44.7 million and 301.4millionrespectivelyinQ4fiscal2022[36]−Netcashusedinoperatingactivitiesforthe53weeksendedFebruary3,2024was301.4 million respectively in Q4 fiscal 2022[36] - Net cash used in operating activities for the 53 weeks ended February 3, 2024 was 251,960 million, compared to 144,286millioninthe52weeksendedJanuary28,2023[49]SellingandAdministrativeExpenses−FullYear2022sellingandadministrativeexpenseswere144,286 million in the 52 weeks ended January 28, 2023[49] Selling and Administrative Expenses - Full Year 2022 selling and administrative expenses were 2,040,334 million, with an adjusted (non-GAAP) figure of 1,971,938millionafterexcludingstoreassetimpairmentandgainonsaleofrealestate[35]−Q42022sellingandadministrativeexpenseswere1,971,938 million after excluding store asset impairment and gain on sale of real estate[35] - Q4 2022 selling and administrative expenses were 544,486 million, with an adjusted (non-GAAP) figure of 521,918million[38]−AdjustedsellingandadministrativeexpensesforQ42023were521,918 million[38] - Adjusted selling and administrative expenses for Q4 2023 were 509.86 million, down from 535.25millionasreported,afterexcludingvariouscostssuchasFDCcontractterminationandassetimpairmentcharges[51]−Full−year2023adjustedsellingandadministrativeexpenseswere535.25 million as reported, after excluding various costs such as FDC contract termination and asset impairment charges[51] - Full-year 2023 adjusted selling and administrative expenses were 1.89 billion, down from $2.14 billion as reported, after excluding synthetic lease exit costs and other adjustments[52] Tax Rates - The adjusted effective income tax rate for Q4 2023 was 15.3%, compared to a reported rate of 11.3%, after adjustments for tax-related items[51] - Full-year 2023 adjusted effective income tax rate was 15.0%, compared to a reported rate of -11.5%, after adjustments for tax-related items[52]