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Big Lots Posts Loss In Q1; Comps. Down 17.0%

Big Lots, Inc. (BIG) posted a first quarter net loss of $11.1 million, or $0.39 per share, compared to net income of $94.6 million, or $2.62 per share, prior year. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.93, for the quarter. Analysts' estimates typically exclude special items.

Net sales were $1.37 billion, a 15.4% decrease compared to $1.63 billion, prior year. The company said the decline was driven by a comparable sales decrease of 17.0%, as it lapped an 11.3% comparable sales increase last year. Analysts on average had estimated $1.46 billion in revenue.

"We missed our sales plan by approximately $100 million, the vast majority in April, while supply chain impacts across gross margin and SG&A continued to be significant headwinds," said Bruce Thorn, President and CEO of Big Lots.

For the second quarter, the company expects three-year comps to accelerate to positive mid to high-single digits, equating to mid-to-high single digit negative comps from 2021.

The company said it is taking aggressive actions to improve gross margin rate in the back half of the year, and expects to achieve significant sequential improvement in third quarter, with a fourth quarter that is approximately in-line with the prior year quarter. Also, the company will continue to take actions to reduce expenses.

On May 24, 2022 the Board declared a quarterly cash dividend of $0.30 per common share for the second quarter of fiscal 2022. The dividend will be paid on June 24, 2022, to shareholders of record as of the close of business on June 10, 2022.

Shares of Big Lots were down 21% in pre-market trade on Friday.

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