- Big Lots Inc (NYSE:BIG) reported a fourth-quarter FY21 sales decline of 0.3% year-on-year, to $1.73 billion, beating the consensus of $1.72 billion.
- Comparable sales decreased 2.3% versus a 7.9% increase last year. On a two-year basis, comparable sales increased 5.4%.
- The gross margin for the quarter decreased 210 basis points Y/Y to 37.3%. The operating margin dropped from 7.5% to 3.9%, and operating income for the quarter fell 48.5% to $67.5 million.
- The company held $54 million in cash and equivalents as of January 29, 2022. Cash provided by operating activities for the twelve months totaled $193.7 million.
- Inventory at Q4-end increased 32% Y/Y encompassing higher unit costs and a significant increase in in-transit inventory.
- Adjusted EPS of $1.75 missed the consensus of $1.90.
- "January was a tough month as inclement weather and the Omicron spike caused a slowdown in our business, further impacted by inventory delays in key areas," said CEO Bruce Thorn.
- The Board of Directors declared a quarterly cash dividend of $0.30 per common share for Q1 FY22, payable on April 1, 2022, to shareholders of record on March 18, 2022.
- Outlook: Big Lots sees Q1 FY22 EPS of $1.10 - $1.20 versus the consensus of $1.28.
- This outlook reflects a comparable sales increase of 10% to Q1 of 2019, equating to a low double-digit decline in comparable sales versus Q1 of 2021.
- Price Action: BIG shares are trading lower by 6.57% at $34.85 in premarket on the last check Thursday.
