We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Big Lots (BIG) Q4 Loss Narrower Than Expected, Revenues Fall Y/Y
Read MoreHide Full Article
Big Lots, Inc. (BIG - Free Report) reported a narrower-than-expected adjusted loss of 28 cents per share for fourth-quarter fiscal 2022 results, comparing favorably with the Zacks Consensus Estimate of a loss of 69 cents per share. The metric compared unfavorably with earnings per share (EPS) of $1.75 reported in the year-ago quarter.
Net sales of this Columbus, OH-based player dropped 10.9% to $1,543 million year over year and came below the Zacks Consensus Estimate of $1,549 million. The year-over-year downside was due to soft comparable sales. Comparable sales fell 13%. Management estimates that comparable sales were hurt by roughly 130 basis points (bps) owing to product shortages in furniture stemming from the closure of the company’s largest vendor in November. However, net new stores and relocations added nearly 210 bps of sales growth versus the fourth quarter of 2021. Quarterly results were hurt by the volatility caused by the macroeconomic environment.
Over the past three months, shares of this current Zacks Rank #4 (Sell) company have decreased 17.3% compared with the industry’s 2.4% fall. Nonetheless, management has been making efforts to strengthen and transform the business model. It has also been taking actions to control costs. E-Commerce sales accounted for 6% of the company’s business in 2022 versus 2% three years ago.
image Url copied:
Image Source: Zacks Investment Research
More on Results
E-Commerce sales were impacted in the reported quarter and are likely to be hurt in the first quarter of fiscal 2023 by the United Furniture Disruption, considering the high proportion of furniture sales in the channel. Nonetheless, management has been working to remove friction with better site navigation and overall customer experience.
Gross profit declined 13.2% year over year to $560.9 million. Big Lots’ gross margin contracted 100 bps to 36.3% from the year-ago quarter’s figure of 40.2%. Impacts from higher markdowns with respect to accelerated store closures and initiatives to clean up inventory hurt the metric.
In the reported quarter, adjusted selling and administrative expenses were $521.9 million, down 2.7% year over year. As a percentage of net sales, the metric increased 280 basis points to 33.8%. BIG recorded an adjusted operating loss of $2.3 million in the reported quarter.
Other Financial Details
Big Lots ended the quarter with cash and cash equivalents of $44.7 million and long-term debt of $301.4 million. Total shareholders’ equity was $763.9 million. Inventories decreased to $1,147.9 million from $1,237.8 million recorded in the prior-year period.
For the 52 weeks that ended Jan 28, 2023, BIG used net cash worth $144.3 million from operating activities.
Big Lots’ board announced a quarterly cash dividend of 30 cents a share, payable Mar 31, 2023, to its shareholders of record as of Mar 17. At the end of the reported quarter, BIG had $159 million remaining under its $250 million share buyback authorization.
Big Lots concluded the quarter with 1,425 stores across 48 states.
Outlook
For the first quarter of fiscal 2023, management expects comps to decline in the low to the mid-teens range. Net new stores will contribute nearly 40 basis points of growth compared to 2022. Big Lots anticipates the gross margin rate to rise sequentially in the high-30s range.
With respect to fiscal 2023, BIG expects an improvement in financial results year over year. Management highlighted that earnings momentum is likely to be weighted toward the back half of the fiscal year, on better actions and reductions in freight costs. Given the highly volatile macroeconomic backdrop, management did not give guidance for the fiscal year.
Three Retail Stocks to Bet on
We have highlighted three top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Big Lots (BIG) Q4 Loss Narrower Than Expected, Revenues Fall Y/Y
Big Lots, Inc. (BIG - Free Report) reported a narrower-than-expected adjusted loss of 28 cents per share for fourth-quarter fiscal 2022 results, comparing favorably with the Zacks Consensus Estimate of a loss of 69 cents per share. The metric compared unfavorably with earnings per share (EPS) of $1.75 reported in the year-ago quarter.
Net sales of this Columbus, OH-based player dropped 10.9% to $1,543 million year over year and came below the Zacks Consensus Estimate of $1,549 million. The year-over-year downside was due to soft comparable sales. Comparable sales fell 13%. Management estimates that comparable sales were hurt by roughly 130 basis points (bps) owing to product shortages in furniture stemming from the closure of the company’s largest vendor in November. However, net new stores and relocations added nearly 210 bps of sales growth versus the fourth quarter of 2021. Quarterly results were hurt by the volatility caused by the macroeconomic environment.
Over the past three months, shares of this current Zacks Rank #4 (Sell) company have decreased 17.3% compared with the industry’s 2.4% fall. Nonetheless, management has been making efforts to strengthen and transform the business model. It has also been taking actions to control costs. E-Commerce sales accounted for 6% of the company’s business in 2022 versus 2% three years ago.
image Url copied:
Image Source: Zacks Investment Research
More on Results
E-Commerce sales were impacted in the reported quarter and are likely to be hurt in the first quarter of fiscal 2023 by the United Furniture Disruption, considering the high proportion of furniture sales in the channel. Nonetheless, management has been working to remove friction with better site navigation and overall customer experience.
Gross profit declined 13.2% year over year to $560.9 million. Big Lots’ gross margin contracted 100 bps to 36.3% from the year-ago quarter’s figure of 40.2%. Impacts from higher markdowns with respect to accelerated store closures and initiatives to clean up inventory hurt the metric.
In the reported quarter, adjusted selling and administrative expenses were $521.9 million, down 2.7% year over year. As a percentage of net sales, the metric increased 280 basis points to 33.8%. BIG recorded an adjusted operating loss of $2.3 million in the reported quarter.
Other Financial Details
Big Lots ended the quarter with cash and cash equivalents of $44.7 million and long-term debt of $301.4 million. Total shareholders’ equity was $763.9 million. Inventories decreased to $1,147.9 million from $1,237.8 million recorded in the prior-year period.
For the 52 weeks that ended Jan 28, 2023, BIG used net cash worth $144.3 million from operating activities.
Big Lots’ board announced a quarterly cash dividend of 30 cents a share, payable Mar 31, 2023, to its shareholders of record as of Mar 17. At the end of the reported quarter, BIG had $159 million remaining under its $250 million share buyback authorization.
Big Lots concluded the quarter with 1,425 stores across 48 states.
Outlook
For the first quarter of fiscal 2023, management expects comps to decline in the low to the mid-teens range. Net new stores will contribute nearly 40 basis points of growth compared to 2022. Big Lots anticipates the gross margin rate to rise sequentially in the high-30s range.
With respect to fiscal 2023, BIG expects an improvement in financial results year over year. Management highlighted that earnings momentum is likely to be weighted toward the back half of the fiscal year, on better actions and reductions in freight costs. Given the highly volatile macroeconomic backdrop, management did not give guidance for the fiscal year.
Three Retail Stocks to Bet on
We have highlighted three top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.