Big Lots Q4 Recap: Retailer's Sales Decline 11%, Comps Hit By Loss Of Significant Vendor

Big Lots Inc BIG reported a fourth-quarter sales decline Thursday of 10.9% year-on-year to $1.543 billion, missing the consensus of $1.55 billion. Comparable sales for the quarter decreased by 13% Y/Y.

The retailer said comparable sales were adversely impacted by approximately 130 basis points due to product shortages in furniture resulting from the unexpected closure of its most significant vendor in November.

Gross margin for the quarter decreased 100 basis points Y/Y to 36.3%. 

The operating margin loss was 0.5% versus 3.9% a year ago. The operating loss was $8.06 million versus $67.5 million profit last year.

The company held $44.7 million in cash and equivalents.

Inventory at the end of the quarter was $1.148 billion, a 7.3% decrease Y/Y.

Adjusted EPS loss of 28 cents beat the consensus estimate of a loss of 85 cents.

Outlook: Big Lots sees Q1 comparable sales in the low to the mid-teens range.

The company is not providing EPS guidance given an atypically wide range of outcomes.

Concerning the whole year, the company targets improving financial results versus 2022. Earnings momentum will be weighted towards the back half of the year as key actions to improve the business gain traction, and freight cost reductions continue to be realized.

BIG Price Action: BIG shares are trading lower by 0.22% at $13.70 premarket on the last check Thursday.