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Oct 30, 2021
Big Lots Q3 2022 Earnings Report
Reported a net loss for Q3 2021, with net sales decreasing by 3.1% compared to the same period last year but increasing 14.4% compared to Q3 2019.
Key Takeaways
Big Lots reported a net loss of $4.3 million for the third quarter of fiscal 2021. Net sales totaled $1,336 million, a 3.1% decrease compared to the same period last year. The company announced a new $250 million share repurchase authorization.
Net loss of $4.3 million, or $0.14 per share, for the third quarter of fiscal 2021.
Net sales for the third quarter of fiscal 2021 totaled $1,336 million, a 3.1% decrease compared to last year.
Comparable sales decreased by 4.7%, but increased 12.3% on a two-year basis.
New $250 million share repurchase authorization announced.
Big Lots
Big Lots
Forward Guidance
For the fourth quarter of fiscal 2021, the company expects diluted earnings per share in the range of $2.05 to $2.20, based on a slightly positive comparable sales increase. For the full year, the company expects a negative low single digit decrease in comparable sales and diluted earnings per share in the range of $5.70 to $5.85.
Positive Outlook
- Expects to report diluted earnings per share in the range of $2.05 to $2.20 for Q4 2021.
- Anticipates a slightly positive comparable sales increase for Q4 2021.
- Expects a sales benefit of approximately 180 basis points for Q4 as a result of net new store openings.
- Company expects a new record sales year in 2022.
- Expects to see gross margin expansion in 2022 driven by promotional and pricing optimization.
Challenges Ahead
- Expects fourth quarter gross margin to be down approximately 150 basis points to last year, driven by freight headwinds.
- For the full year, the company expects a negative low single digit decrease in comparable sales.
- The impact of freight headwinds for the full year is expected to result in a 120 basis point decline in full year gross margin compared to last year.
- Supply chain challenges will continue in the near-term.
- Company took pricing actions in response to volatile supply chain costs.