Big Lots Inc. (NYSE: BIG) has announced its first-quarter FY23 results, revealing a sales decline of 18.3% year-on-year to $1.124 billion, missing the consensus of $1.19 billion. The decline was primarily driven by a comparable sales decrease of 18.2%. Gross margin for the quarter decreased 180 basis points Y/Y to 34.9%. The operating loss for the quarter was $(261.2) million versus a loss of $(13.5) million a year ago.
As of Apr 29, 2023, the company held $51.3 million in cash and equivalents. Inventory at the end of the quarter was $1.08 billion, an 18.8% decrease Y/Y. Adjusted EPS loss of $(3.40) missed the analyst consensus of $(1.77).
CEO Bruce Thorn acknowledged the challenges faced by the company, stating, “Macro-economic headwinds have created significant challenges for us, which are reflected in our results and outlook.” However, he also emphasized the company’s aggressive approach to managing its business, revealing plans to significantly raise their SG&A savings target to over $100 million in 2023. Additionally, the company has identified over $200 million of bottom-line opportunities across gross margin and SG&A that they will be pursuing over the next 18 months.
The company has also entered a letter of intent for a sale and leaseback of the Apple Valley, California, distribution center; corporate headquarters building in Columbus, Ohio, and most of the remaining owned stores for $340 million. However, on May 23, 2023, the Board of Directors declared a suspension of the dividend.
Looking ahead, Big Lots expects Q2 comparable sales to be down in the high-teens range, with the gross margin rate slightly improving but remaining in the low-30s range. This is driven by significant markdowns on slow-moving seasonal merchandise. The company did not provide EPS guidance.
BIG Stock Performance on May 26, 2023: Fluctuations, Market Capitalization, and Earnings Growth
On May 26, 2023, BIG stock opened at $5.94, fluctuated within a range of $5.68 to $6.56, and had a trading volume of 4,294,946. BIG is a discount retail store headquartered in Columbus, Ohio, with a market capitalization of $228.2M, a price-to-sales ratio of 0.09, and a price-to-book ratio of 0.30. The company’s earnings growth last year was -234.39%, but it has shown an improvement this year with a growth rate of +20.18%. However, the earnings growth forecast for the next five years is -23.41%. The P/E ratio of BIG is not available (NM), which might indicate that the company is not currently profitable. In comparison to other retail trade companies, BIG’s stock performance on May 26, 2023, was not impressive.
Big Lots Inc Reports Negative Earnings Per Share in Current Quarter, Analysts Offer 12-Month Price Forecasts
On May 26, 2023, Big Lots Inc reported its current quarter earnings per share of -$1.78 and sales of $1.2B. The company’s stock performance has been a topic of discussion among investors and analysts as they offer their 12-month price forecasts. According to data from CNN Money, the eight analysts offering 12-month price forecasts for Big Lots Inc have a median target of 8.50, with a high estimate of 16.00 and a low estimate of 7.00. The current consensus among 10 polled investment analysts is to hold stock in Big Lots Inc. Investors are likely monitoring the company’s financial performance closely, given the negative earnings per share reported for the current quarter. However, it is worth noting that the company’s sales figures remained steady at $1.2B.
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