Big Lots(US:BIG)2023-03-27 16:00Store Operations - As of January 28, 2023, the company operates 1,425 stores, with 31% located in California, Texas, Florida, and Ohio, contributing to 33% of 2022 net sales[142] - The company opened 56 new stores in 2022 but closed 62, resulting in a net decrease of 6 stores for the year[170] - The company operates four small-format forward distribution centers, which are set to close by August 2023 due to decreased sales and purchasing volumes[174] Financial Performance - The company experienced an operating loss in each quarter of 2022, primarily due to inflationary pressures, resulting in decreased net sales and increased selling and administrative expenses[148] - In 2022, the company recorded asset impairment charges totaling $68.4 million across the second, third, and fourth quarters[149] - In fiscal year 2022, net sales were 25.1% in Q1, 24.6% in Q2, 22.0% in Q3, and 28.3% in Q4, with an operating loss of (5.2%), (41.7%), (50.0%), and (3.1%) respectively[178] - In fiscal year 2021, net sales were 26.4% in Q1, 23.7% in Q2, 21.7% in Q3, and 28.2% in Q4, with operating profit percentages of 51.1%, 22.5%, (1.7%), and 28.1% respectively[178] - The company had $301.4 million in borrowings under the 2022 Credit Agreement as of January 28, 2023, with a 1% increase in variable interest rates potentially impacting operations by approximately $3.0 million[395] - Cash used in investing activities decreased by $50.7 million to $108.9 million in 2022 compared to $159.7 million in 2021, driven by increased cash proceeds from the sale of property and equipment[411] - The company's insurance reserves decreased from $99.3 million in 2022 to $94.5 million in 2023, with a 10% change in self-insured liabilities potentially affecting expenses by approximately $7.9 million[417] - The company was in compliance with the covenants of the 2022 Credit Agreement as of January 28, 2023[404] Customer Engagement - The BIG Rewards Program had approximately 21 million active members as of January 28, 2023, down from 22 million the previous year, indicating a focus on customer engagement[168] - The company utilizes customer data for personalized marketing, which is crucial for evaluating promotional effectiveness and driving net sales[168] Seasonal Trends - Seasonal fluctuations in sales are significant, with a larger percentage of net sales typically realized in the fourth fiscal quarter[147] Diversity and Inclusion - The company has a commitment to diversity, equity, and inclusion, with a DEI Council established to advance its strategy[153] Corporate Social Responsibility - The company plans to publish its second corporate social responsibility report titled "BIG Cares" in April 2023, addressing environmental, social, and governance policies[186] Employee Benefits and Development - The company provided over $25 million in corporate discounts to associates in 2022, highlighting its competitive compensation and benefits package[182] - The company is committed to talent development through annual goal-setting and performance reviews, along with a robust training catalog[183] - The company has implemented comprehensive safety protocols across its facilities to ensure the health and safety of associates and customers[184]