COLUMBUS, Ohio - Big Lots Inc . (NYSE: NYSE:BIG) reported a narrower-than-expected loss for the fourth quarter, with an adjusted loss per share of $0.28, beating the analyst consensus estimate of a $0.36 loss. Revenue for the quarter was in line with expectations at $1.43 billion. Despite matching sales forecasts, the company's stock fell by 4.57% premarket.
In the fourth quarter, Big Lots experienced a 7.2% decrease in net sales compared to the same period last year, primarily due to an 8.6% drop in comparable sales. However, the company highlighted a sequential improvement in comps and gross margin rate. Bruce Thorn, President and CEO, expressed satisfaction with the quarter's progress, emphasizing the company's adherence to guidance despite a challenging macroeconomic environment and weather-related issues in January.
Thorn also outlined expectations for 2024, including continued quarterly gross margin improvements and a path to positive comparable sales. The company's Project Springboard is on track to deliver significant benefits, with an anticipated growth in bargain penetration to 75% of sales.
Big Lots' inventory management resulted in a 17% reduction from the previous year, and the company maintained liquidity through cost management and asset monetization. The company ended the quarter with $46.4 million in cash and equivalents and reduced long-term debt by $127 million.
For the first quarter of fiscal 2024, Big Lots anticipates comp sales to improve and gross margin rates to increase by 200-250 basis points. Adjusted SG&A dollars are expected to decrease slightly compared to 2023. The company has not provided EPS guidance for the first quarter but expects the adjusted operating loss to be lower than the previous year.
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