In a tough fourth quarter, Big Lots missed a Wall Street earnings estimate as supply chain, the COVID-19 Omicron variant and weather pressured financial results, according to the company.
Big Lots posted a net income of $49.8 million, or $1.63 per diluted share, versus $98 million, or $2.59 per diluted share, in the year-previous quarter.
Adjusted for one-time charges, net income was $53.6 million, or $1.75 per diluted share, Big Lots noted.
The company fell short of a Yahoo Finance-published analyst consensus estimate for adjusted diluted earnings per share, which came in at $1.89, but narrowly beat a sales estimate of $1.72.
Net sales for the fourth quarter of fiscal 2021 totaled $1.73 billion, the company stated a 0.3% decrease compared to the year-earlier period and an increase of 7.8% compared to the fourth quarter of fiscal 2019. A comparable sales decrease of 2.3% drove the decline, as the company lapped a 7.9% comp gain in the period a year past. On a two-year basis, comps advanced 5.4%. Net new stores and relocations contributed about 200 basis points to overall sales growth, Big Lots stated.
For fiscal 2021, net income totaled $177.8 million, or $5.33 per diluted share, versus $629.2 million, or $16.11 per diluted share, in the year previous.
Adjusted net income was $181.6 million, or $5.44 per diluted share, versus $287.3 million, or $7.35 per diluted share, in fiscal 2020, Big Lots indicated.
Net sales for fiscal 2021 totaled $6.15 billion, the company reported, a 0.8% decline compared to the year prior, with the decrease resulting from a comp decrease of 2.5% versus the year past partially offset by sales growth in high volume new and relocated non-comp stores. On a two-year basis, comps advanced 13.2%.
Bruce Thorn, president and CEO of Big Lots, said, “Our new store openings are proceeding as planned, our in-stock levels are improving, and our productivity initiatives continue to deliver and gain traction. During the fourth quarter, we had a successful holiday helping our BIGionaires Live Big and Save Lots! 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. However, as we have moved into 2022, we have seen these factors abate, and sales are regaining traction. In 2022, we will open over 50 net new stores, further roll out programs to drive merchandise productivity and continue to improve our supply chain infrastructure to enable us to serve our customers how, when and where they want to shop.”
In the fourth quarter, he said, “results were negatively impacted by around 30 cents per share as a result of adverse shrink results as we began our annual physical inventory cycle in January. We are actively implementing new processes and technologies that we are confident will improve shrink results going forward. In addition, we are aggressively tackling the current macro inflation and supply chain headwinds and building a more mature pricing organization to optimize margin, while continuing to provide excellent value for our customers. We are confident in our ability to navigate these near-term challenges, and remain focused on delivering our long-term sales and margin goals, and creating tremendous value for shareholders.”
