Big Lots(BIG)2024-06-11 21:12Financial Performance - Q1 2024 net sales totaled $1.009 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; adjusted EPS loss of $4.51, compared to an adjusted EPS loss of $3.40 in Q1 2023[9] - Q1 2024 adjusted operating loss improved to $192.9 million from $261.2 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, 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, 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), 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 $200 million term loan facility[9] - Q1 2024 long-term debt increased to $573.8 million from $501.6 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 $949.9 million from $1.087 billion in Q1 2023, reflecting improved inventory management[21] - Inventory at the end of Q1 2024 was $949.9 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 $185 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 $460.3 million, a decrease from the reported $533.0 million after excluding FDC contract termination costs ($874k), store asset impairment charges ($68.2 million), and Project Springboard fees ($3.6 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]