NYSE$BIGGQ

Big Lots Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a net loss due to a comparable sales decrease, but managed expenses and inventory effectively.

Big Lots reported a net loss of $103.0 million, or $3.56 per share, for the third quarter of fiscal 2022. Net sales totaled $1.204 billion, a 9.8% decrease compared to the same period last year, driven by a comparable sales decrease of 11.7%.

  • Net loss was $103.0 million, or $3.56 per share, including store asset impairment charges.
  • Adjusted net loss was $86.7 million, or $2.99 per share, excluding impairment charges.
  • Net sales decreased by 9.8% to $1.204 billion compared to last year.
  • Comparable sales decreased by 11.7%.

Headline financials

Total Revenue

$1.03B

Previous: $1.2B-14.7%
EPS (adj)

-$3.57

Previous: -$0.01-35600.0%
Capital Expenditures

-$45M

Previous: -$127M+64.7%
Free Cash Flow

-$444M

Previous: -$406M-9.3%
Net Income

$4.74M

Previous: -$103M+104.6%
Operating Income

$19.7M

Previous: -$131M+115.0%
Gross Profit

$374M

Previous: $409M-8.7%
Cash & Equivalents

$46.6M

Previous: $62.1M-25.0%
Total Assets

$3.63B

Previous: $4.04B-10.2%
Stock-Based Comp

$3.9M

Previous: $8.7M-55.2%

Revenue & EPS history

Big Lots · Revenue · Quarterly

$1.03B

Q3 2023-14.7%vs Q3 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

For the fourth quarter, the company expects comps to be down in the low-double-digit range. Net new stores will add about 170 basis points of growth versus 2021. The company expects the fourth quarter gross margin rate to improve sequentially versus Q3 but remain in the mid-30s range. Given an atypically wide range of outcomes, the company is not providing EPS guidance at this point. The company expects a share count of approximately 29.0 million for Q4.

Tailwinds

  • Net new stores expected to add about 170 basis points of growth versus 2021.
  • Gross margin rate expected to improve sequentially versus Q3.
  • Share count of approximately 29.0 million expected for Q4.
  • Company completed the refinancing and replacement of its existing $600 million senior unsecured credit facility with a new $900 million five-year revolving asset-based loan (ABL) facility.
  • The new facility strengthens the company’s liquidity position and increases its financial flexibility.

Headwinds

  • Comps expected to be down in the low-double-digit range.
  • Gross margin rate expected to remain in the mid-30s range.
  • Additional markdowns related to accelerated store closures expected.
  • Continued efforts to clean up slow-moving inventory expected.
  • Company is not providing EPS guidance at this point.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.1%

Avg return

Earnings day

-6.1%

Avg return

5 days after

-6.7%

Avg return

30 days after

51%

31 / 61 earnings

Positive

+8.1%

Q2 2021

Best reaction

-50.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2024-50.9%-64.2%-36.7%
Q3 2025-50.9%-64.2%-36.7%
Q1 2024-2.8%-21.0%-56.3%
Q4 2024-13.0%-21.0%-56.3%
Q2 2024-1.0%-1.7%-31.1%
Q4 2023-0.2%+6.1%-14.8%
Q3 2023-6.7%-12.0%-24.6%
Q2 2023-4.5%-0.7%-24.3%
Q1 2023+5.5%+2.4%-12.8%
Q4 2022-3.9%-9.9%-13.2%
Q3 2022+0.5%+2.0%+3.3%
Q2 2022+1.5%+0.7%+2.8%
Q1 2022+2.5%+1.3%-11.6%
Q4 2021+1.3%+2.1%+4.5%
Q3 2021-14.6%-11.8%-18.8%
Q2 2021+8.1%+9.2%+16.4%
Q1 2021+4.0%+3.7%+55.3%
Q4 2020-0.6%+5.8%+68.9%
Q3 2020+4.7%+0.0%+7.9%
Q2 2020-5.6%-9.0%-9.2%
Q1 2020+2.0%+0.6%-26.6%
Q4 2019-1.2%-0.6%-4.1%
Q3 2019-0.8%-4.5%+4.7%
Q2 2019-3.9%-4.2%-0.8%
Q1 2019-0.7%-0.9%-2.2%
Q4 2018+2.9%-0.1%-1.8%
Q3 2018+0.3%-1.4%-1.5%
Q2 2018-0.1%+0.6%+11.8%
Q1 2018-1.9%-2.6%-1.4%
Q4 2017+2.6%+1.2%+7.9%
Q3 2017+3.0%+0.6%-8.7%
Q2 2017-0.6%-1.5%-4.7%
Q1 2017+1.3%
Q4 2016+0.6%
Q3 2016-1.5%
Q2 2016-4.1%
Q1 2016+1.2%
Q4 2015-1.3%
Q3 2015-1.2%
Q2 2015+0.5%
Q1 2015-1.1%
Q4 2014+0.8%
Q3 2014+1.1%
Q2 2014+1.4%
Q1 2014+0.9%
Q4 2013-0.7%
Q3 2013-4.4%
Q2 2013+0.1%
Q1 2013-1.9%
Q4 2012+2.5%
Q3 2012-2.0%
Q2 2012+1.1%
Q1 2011+2.0%
Q1 2012+0.4%
Q4 2011+0.8%
Q4 2009+0.8%
Q3 2010-0.1%
Q3 2011-0.1%
Q2 2010+0.6%
Q4 2010+0.6%
Q2 2011+0.6%

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