Thu, Jun 13, 8:16 PM (276 days ago)
Big Lots, Inc. reported a net sales decrease of 10.2% to $1.01 billion for the quarter ended May 4, 2024, compared to the same period in 2023. Comparable sales declined by 9.9%, driven by reduced consumer spending across all categories. Gross margin improved by 190 basis points to 36.8%, primarily due to lower markdown rates. Selling and administrative expenses dropped by $87.9 million to $533.0 million, attributed to lower lease payments and reduced store asset impairment charges. The operating loss rate improved to -19.1% from -23.2%. The company ended the quarter with $324.9 million in available borrowings, but substantial doubt remains about its ability to continue as a going concern due to expected covenant compliance issues within the next 12 months. Management is implementing cost reduction and liquidity improvement plans.