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Oct 29, 2022
Big Lots Q3 2023 Earnings Report
Reported a net loss due to a comparable sales decrease, but managed expenses and inventory effectively.
Key Takeaways
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%.
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.
Positive Outlook
- 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.
Challenges Ahead
- Comps expected to be down in the low-double-digit range.
- Gross margin rate expected to remain in the mid-30s range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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