Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2023 ("2023") is comprised of the 53 weeks that began on January 29, 2023 and will end on February 3, 2024. Fiscal year 2022 ("2022") was comprised of the 52 weeks that began on January 30, 2022 and ended on January 28, 2023. The fiscal quarters ended July 29, 2023 ("s ...

Big Lots, Inc. (NYSE:BIG) Q2 2023 Earnings Conference Call August 29, 2023 8:00 AM ET Company Participants Alvin Concepcion - Vice President, Investor Relations Bruce Thorn - President and Chief Executive Officer Jonathan Ramsden - Executive Vice President, Chief Financial officer and Chief Administrative Officer Conference Call Participants Jason Haas - Bank of America Brad Thomas - KeyBanc Capital Markets Krisztina Katai - Deutsche Bank Daniel Silverstein - Credit Suisse Alvin Concepcion Good morning. Thi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from __________ to __________ Securities registered pursuant to Section 12(b) of the Act: If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ TABLE OF CONTENTS Table of Contents ☑ QUARTERLY REPORT PURSUANT TO SECT ...

Financial Data and Key Metrics Changes - Q1 net sales were $1.12 billion, an 18.3% decrease compared to $1.37 billion a year ago, driven by a comparable sales decrease of 18.2% [56][30] - Adjusted net loss for Q1 was $98.7 million, with an adjusted diluted loss per share of $3.40 [58] - Gross margin rate for Q1 was 34.9%, down 180 basis points from the previous year, primarily due to higher levels of late quarter promotions [58][31] - Total ending inventory cost was down 18.8% to $1.09 billion [42] Business Line Data and Key Metrics Changes - Seasonal comps declined 25% in Q1 due to unfavorable weather and consumer pullback on higher ticket outdoor furniture [24] - Furniture sales, particularly Broyhill upholstery, were adversely impacted by product shortages related to the closure of United Furniture Industries [30] - Food and consumables held up relatively well despite traffic challenges [2] Market Data and Key Metrics Changes - The lower-income consumer has been significantly affected by inflation, lower tax refunds, and higher interest rates, impacting overall consumer confidence [11] - The company expects continued adverse impact to comps from product shortages in furniture of around 100 basis points in Q2 [45] Company Strategy and Development Direction - The company is focusing on five key actions to drive profitable growth, including increasing the penetration of bargain items to one-third of the assortment [4][28] - Plans to enhance the assortment by procuring from over-inventoried mass retailers and distressed vendors [16] - The company aims to improve store relevance, particularly in rural and small-town markets, and enhance the omnichannel customer experience [5][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that macroeconomic headwinds will abate, leading to a boost in business [11] - The company is aggressively managing costs and has identified over $100 million in structural SG&A savings for 2023 [12] - Management anticipates a more significant improvement in the back half of the year as merchandising and marketing actions gain traction [44] Other Important Information - The board decided to suspend the dividend to enhance liquidity during challenging times [35] - The company is pursuing asset monetization, including a sale and leaseback transaction expected to generate around $240 million in net proceeds [39] Q&A Session Summary Question: Can you provide details on quarter-to-date trends and business progress as the weather changes? - Management noted that weather improvements are helping seasonal sales, but challenges remain in Q2 due to heavy promotions from the previous year [65] Question: What initiatives are in place for food and consumables? - Management highlighted that flexing assortments in food and consumables has shown high-single-digit improvements in targeted markets [88] Question: How clean is the inventory, and are there areas needing improvement? - Management indicated that while furniture inventory is not where it should be, other areas are performing well, and they are targeting promotions to clear slow-moving inventory [95][111] Question: What is the expected impact of the sale leaseback transaction on liquidity? - The transaction is expected to increase available liquidity to around $500 million, enhancing the company's financial position [117] Question: How does the company plan to attract customers from competitors' bankruptcies? - Management is leveraging marketing campaigns to attract dislocated customers from competitors, expecting to see positive results from these efforts [128]

| --- | --- | |-------|-------| | | | | | | trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in our other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This presentation should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forwardlooking s ...

Store 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]

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 October 29, 2022 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 (Stat ...

Financial Data and Key Metrics Changes - Q3 net sales were $1.204 billion, a 9.8% decrease compared to $1.336 billion a year ago, driven by a comparable sales decrease of 11.7% [34] - Adjusted net loss for Q3 was $87 million, compared to a $4 million net loss in Q3 of 2021, with adjusted diluted loss per share at $2.99 versus $0.14 last year [35] - Gross margin rate for Q3 was 34%, down 490 basis points from the previous year, impacted by higher markdowns and freight costs [35] - Ending inventory cost was up 5.3% year-over-year at $1.345 billion, indicating a significant sequential improvement [39] Business Line Data and Key Metrics Changes - Seasonal comps grew 7% in Q3, driven by strong Halloween promotions, while furniture and home categories saw double-digit declines due to consumer pullback on high-ticket items [17][18] - The food category was up 1%, while consumables were down 5% in Q3, reflecting a mixed performance across categories [18] - Bargain procurement increased significantly, with 160% more bargains at retail compared to Q2 and about 90% more year-over-year [13] Market Data and Key Metrics Changes - The current economic environment is challenging, with inflation at a 40-year high and consumer sentiment historically low, affecting discretionary purchases [5][6] - The company is focusing on rural and small-town markets, where it outperforms with a strong assortment of furniture and home goods [27] Company Strategy and Development Direction - The company aims to increase the penetration of bargains and treasures in its assortment to two-thirds by the end of 2023, up from the high 40% range [22] - Plans include clearer communication of value to customers and optimizing the assortment to enhance the shopping experience [23][24] - The company is focused on driving productivity, reducing expenses, and making disciplined investment decisions to strengthen its business model [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing pressure from high inflation and consumer pullback on discretionary spending, particularly in furniture [19] - The company expects comps to remain in the low double-digit range for Q4, with a focus on improving gross margin sequentially [44][45] - Management is optimistic about the potential for increased bargains and treasures to drive sales momentum into 2023 [19][22] Other Important Information - The company opened 20 new stores and closed three, ending Q3 with 1,457 stores [40] - A quarterly cash dividend of $0.30 per common share was declared for Q3, payable on December 28, 2022 [43] - The company expects to deliver over $100 million in SG&A reductions this year, with approximately $70 million being structural savings [47] Q&A Session Summary Question: What is leading to the slowdown in Q4 comps? - Management noted that high inflation and a pullback in discretionary high-ticket items are significant factors affecting Q4 performance [52] Question: Do you expect destocking to be complete by the end of Q4? - Management expects to end the year with clean inventory and is optimistic about the capacity to pursue closeouts in 2023 [54] Question: How will the reduction of SKUs impact the business? - The reduction of unproductive SKUs is a broader initiative aimed at enhancing the assortment and fueling open-to-buy for differentiating products [76] Question: How is the company addressing gross margin challenges? - Management anticipates improvements in gross margin due to easing freight costs and reduced markdowns, with a long-term goal of returning to a gross margin of 40% or greater [62] Question: Is there a change in the long-term growth framework? - Management maintains its long-term targets, emphasizing that the current environment is a temporary challenge that will be addressed through strategic initiatives [88]

Q3 | 2022 | 1 QUARTERLY RESULTS PRESENTATION THIRD QUARTER 2022 FORWARD-LOOKING STATEMENTS Certain statements in this presentation are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words "anticipate," "estimate," "expect," "objective," "goal," "project," "intend," "plan," "believe," "will," "should," "may," "target," "forecast," "guidance," "outlo ...

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 July 30, 2022 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 o ...