BIG - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, good morning and welcome to the Big Lots Second Quarter Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

On the call today are Bruce Thorn, President and CEO and Jonathan Ramsden, Executive Vice President, Chief Financial and Administrative Officer.

Before starting today’s call, the company would like to remind you that any forward-looking statements made on the call involve risks and uncertainties that are subject to the company’s Safe Harbor provisions as stated in the company’s press release and SEC filings and that actual results can differ materially from those described in the forward-looking statements. The company would like to also point out that our applicable commentary today is focused on adjusted non-GAAP results. non-GAAP are to press in GAAP release. of adjusted available results today’s Reconciliations second XXXX, of realigned from quarter Effective the fiscal organization corresponding its and the reporting structure. merchandise has company seasonal, report for and now final apparel, of and grouping hard will It a food consumables, home, soft results furniture other. electronics home, in commentary filed in in will company’s the changes These today’s Form be September. reflected and XX-Q be to are quarter available release financial at second and earnings company’s information The biglots.com/corporate/investors. related from investor available this the themes is highlighting Also call. an presentation on key website now will over Bruce I the turn to Big Thorn, call of CEO Lots. President and Mr. Thorn, please go ahead.

Bruce Thorn

Thank you and good morning, everyone.

past and both business, to we this review I current reiterate be our will insights XXXX quarter’s and As want that to quarter provide XXXX. comparisons into providing I

footage we hard relationships down strong in and online single-digits, are building quarter, with by X-year mid was posted comp, in-store [indiscernible] existing basis business XXXX last comparisons and demonstrating as double-digit other. demonstrate I quarter Given square our versus newly home our reduced are underscoring anchoring we show we to am strategies, a home, in second to and in we also acquired apparel waves Operation North In To furniture, the food quarantining pleased impacted periods of Consumables that assortment the and soft and to year, performance comps core customers. Star continue progress reset business and on XXXX, our underlying trends. stimulus last our X-year point, while the that our both proving saw electronics out fall. growth with the a strong positive that

year for comparable increased second As XX% to a the last on comparable a basis, while sales result, XX% down quarter XXXX. to

were range us of of quarter than earnings $X.XX, cost greater and the distribution diluted despite expected at that headwinds per guidance point comp. least delivered we supply the at of chain Additionally, beginning and ongoing our within share X

state, the offerings removing past a offering busy quarter, busy, store team e-commerce continuing omni-channel launching leaning our Project While market. through distribution the stores, the rolling into for our from we growth, engaging at is count our preparing start and and and a third forward Lots brand chain centers X were navigating customers, of out additional friction out always warranty new Refresh quarter, activation all our rolling of the BIGionaire’s the Lot with over challenging new really our channel, campaign in Big upgrade Keyline supply further launch to

them in in these unwaveringly mission to teams macro help and While Save Lots. on our our addressing Live remained needs, focused customers’ forces, Big continuing initiatives our

fruition. with dealing into We we dynamic how the opportunity. our be speak are remain excited over future But indebted in the Lots people it potential critical investing our ahead are the time, investing at in and about customer, to that know leaning we of when Lot’s Big I XX,XXX convey in to very all for now and huge leadership growth long-term the supply bringing Big chain. and team of our that infrastructure and I members. our same opportunity and us to navigating our will promising We complexities whitespace ever-changing growth the are

forward on QX distribution impacted and centers. our as stress in also by first labor our we for enter as headwinds dynamic weighed saw second be in our more centers. Freight as distribution addition, gross X This of was further presentation. the reduced quarter Page our performance strong outperformed we on will the And network is the by investor Turning reflected our continued other most to improving of quarter. for opening of specifics some challenges furniture regional basket X categories on quarter, margin on X

temporary customer-centric agile Meanwhile, driving deals we DCs by focused market, chain our alleviate of merchandising that everyday. to network. nimble supply for capacity efficiency DC remain and our fourth bypass the pressures have our program and are maintain and to addition speed on we we setup excited to In will and immediate quarter a increase opportunities

We the store. of continue find in our ability closeout to most expand product to areas

deals see We or are working big incredible for closeouts, and closeout find in XXXX. from to source we for in product whether hard the potential value we buys customers, engineered to market. find great them closeouts grow opportunities our just add We the

well. focus item value merchandising customer on we responding key As our messaging, and is

is example, of the the are more apparel acquisition exploring Lots leading increased For to of our investment customers Big in that assortment.

incremental with this quality our driving sales merchandise the productivity product. with is example initial within a increasing and strong of a box, markup expanding Additionally, great recognition brand

drinks the is a well by on-the-go baking lapped Turning and rebound were beverage, exceeded energy bit as paper sales, on challenged, food well. COVID-related more year prior we the tissue the categories stock QX consumables cosmetics, paper versus last basis category year’s and on our household bath The of category and XXXX we categories consumables, chemicals consumables towels performance, have food In saw to store continued we as snacks, impact. COVID positive in into grocery demand declined quarter both and from to continued a and driven food. reset ups. and and our expectations. while shift a see and X-year food, away both we consumables a performing A this In ago, beginning across to as be

As we value productivity to and with brand brands continue see names. reset, own this improve low and prices opportunity approach lapping everyday improve on to overall deals, big we

inventory of down XX% up X% quarter goods like to Kohl’s overall seasonal Our Xth shipping for due but delays XXXX. lawn comped QX category and availability. patio, last to which assortment, the summer and The includes themed year, was changed to and garden July categories and

in assortment. our our and have Harvest strength sales inventory and Moving into resurgence QX, with situation improved early we from seen Halloween a has

win to to holiday at Although to are supply manufacturing prepared season. related we all-important continue port the better Asian chain pressures challenges, will and disruption create much

were up Soft home XXXX. comps XX% versus

all in over Hard strong XXXX. Apparel categories affecting is up floor a in with to of and particularly expectations. prep care, growth years QX, for double-digit Broyhill in and other as with While our down home outstanding also were quarter and organization, following rugs trend XX% mitigating to to rugs and last organization, XXXX by the strategic comps and and XXXX, classifications with XXXX. XX% appliances, continues over food all home comp a high by sofas appliances, Toys our cookware the anchored XX% but this in we sectionals, strong result share. saw now of strongly XXXX, our demand expectations. which to XX% and and to Day home flat shortages to with of up collection continued production decor It brand, and driven our almost quite quarter. well Bath very gain a home ago. primarily casual XXXX. also did ahead were up year Furniture hard was merchandising patio delivered towels, noteworthy positive and offset an very mats were strong hard met bedding, well. achieved year, another categories Also cookware, last increases furniture job but comp candle appliances weekend floor dinnerware quarter, strong particularly the of athletic delivering were category business. softness Memorial double-digit home Apparel, of in Key within even delivering home goal performed XX% electronics winning very X such Upholstery expectations organization, up exceeding delivered lower, comps positive in maintenance. strongly, doing up to into chemical The to team with now home rolled inventory kitchen and dominating sales. XXXX XX% storage, other XX% comp upholstery to by lifestyle tabletop, sales more challenges, for XXXX we performed and Closeouts the fashion as foam and total dressing comps to women’s XXXX. partially with

Although saw breadth tops shorts nice within hair and Men’s as performed tops we well. value, in and Closeouts assortment, jewelry. with strong, and active high offering to and saw well. new continue increases the shorts build classifications. Accessories remained sell-throughs capris

campaign a share last of about remain treasures. from continued camping novelty She and store our national delighted themed will of and the exceptional Additionally, to lift in set delivering we the X% customers Be brand finds growth gave executed look which we where are why hits to and campaign markets, I videogame as and suppliers, count. of we strengthen to introduced life’s and quarter. brand thrilled well surprising regard was progress such company transactions in consumer theme excited the customers projector, the large quarter, occasions out. of productivity July improving turn results This both fun, that strategy. Star, a the us base, home a year of is love as Lot Operation our a for program e-commerce like we category popcorn resonated term the merchandise it in camping into quarter. this additional as XXXX. while to and We hunt under drivers novelty The With half our nearly improving that would as customer the a customer toward have growing delighting with big our a innovative our as am increasing styles. are with items, treasures the We TV us. right our where driving our units unexpected that longer grounded provide pet around during appliances the sales insights rolled with BIGionaire small is now a continues to luggage growth North glimpse for back to growth, the shop strong X% new sees in bargains with extensive in growth just we sales set are rollout tremendous conversion, nostalgias making of I

consideration incremental the Big also are driving visiting transactions. has and of BIGionaire’s we are The New relevance. increased XX% that Lots awareness, campaign rates these gaining first brand showing for purchase time

who relatability our successfully first and from transferred girls in BIGionaire and campaign. humor her good Our featured campaign parks recreation into Retta

Big to Molly this for Molly we famous comedy, expect and for you and bargains soon. Family; stars soon, the his treasures Big best Lots role Coming Night for with Eric Shannon, As Saturday see gear Both Stonestreet, most Eric details hunting personality. you Lots. can holiday, Live. cannot on and to additional you at embraced share We fantastic see beloved in wait neighborhood known for their future up characters will Modern the her

thrilled also distribution older. the shifting Savvy a with point is from shoppers XX ages incredible younger are basis past resonating with million growth and XXX active XX We the they and superior home new to love share of lots style. customers that big XXXX, demographic a to that our business second our of value the their we new $XX.X versus provide and to are discovering seen with the quarter million. more all XX increase In in we continues membership have X% distribution, those campaign audience. members X.X this up adding productive rewards Meanwhile, contribute currently everything membership at with for rewards quarter with membership ages

customers attached That to our more year of X% in per year. the last last is points basis XX% rewards than sales past quarter our XX% sales rewards Over same membership. and to total were Additionally, customer. penetration this up spent XXX to more quarter

members reactivation through thoughtful continue recapture to keep back. win-back lapsed Finally, them great coming rewards see we programs to and

XXXX. representing the QX demand e-commerce, growth XX% to XXXX, of quarter second of Turning over increased to over XXX%

and to XXXX E-com declined continued more seasonal our as in buy investments first demand we further have height number been the the holiday, store, increasing visits ship-from-store QX XX% successful increases lap channel fulfillment in declines fulfillment. than size. saw with improve in same-day and versus all capabilities, the we purchase support across of ship-from-store delivery Demand is supported were the search, the and Instacart by site in for stores by of traffic and in for conversion curbside offset and and basket the lawn our in To While XXXX, our pickup, we response very of XX. quarter assortment in pickup fulfillment providing quarter. They to furniture pandemic are that momentum garden growth the pickup. over online, the drove

and Now third our for We program, offering later introducing Apple expect Google quarter. in introduce PayPal, Pay of joining we lineup and wallet Buy our time new Later a are further to by payment reducing this Pay transaction friction holiday, mobile

website the of Additionally, the upbeat enhance feel we and and our updated have look the brand of and the campaign. BIGionaire to match feeling

showing QX This Turning represents launched Broyhill’s million year to-date, within ahead we XXXX to strong momentum merchandise increase at up businesses over sales. trajectory had strong brand. our to million assortment continue year’s acceleration in and to Broyhill with full growth a to brand. productivity, and $XXX as the million for remains which growing last see billion with $X to a year just QX continued $XX drove in thrilled brand remain the the sales We $XXX performance point, becoming

In is albeit addition, Broyhill that just it’s important one to own focus call of a out huge brand strategy. our aspect,

real home with area leaning a our goods living, point We a Broyhill. the brand furniture into heavily in store and are lower also of price than private

are unbranded other in private early goods our in store. growth labels consolidating We seeing the brand of by currently and from this transitioning offering

are become we We up and store will offer LOT! stores. the confident brand. our the initiatives Big Line Real Lots. that to The to to newness innovation rest out These in quickly, $X the complete are front-end combined Living in of strengthening X% drive X,XXX own year-to-date lift approximately for it rolled to over act assortment, have the million labs and Queue products and that continues a also make plays generating $XXX a too Queue new strategies customer brand incremental introducing we as now engagement. ramped LOT! has The billion sure with stores Line are Living performance. Real sales into

incremental while are stores aspects Additionally, the tend containing the experience sales calls, buying Lines our this and in home more furniture-focused associates to balance breadth excited impulse that furniture Lot furniture as value, floor strong attached test now I well, XX% next-generation to In Queue driving items become of a our transactions the from on to educate established of quality Lot sales of more around the very introduce upon test perform prior both our furnishings. unit to puts larger and items to have XX the shopping we to checkout. team include be you about assortment that of dedicated announce sales the am over help the lift. of delivering continues Big customers

several We annualized company stores to to XXX point delivering comp in expect of to on roll total this XXXX, an model basis. least X next-generation the at

At in store our accelerate months, growth to with our coming continue year a Xx be on to program, around of whitespace which stores. is work than that accelerating count store Finally, XXXX the to and in XX will expect growth further Based this same have of stores Xx there net expect of time, to net XXXX in with rate regard we recent the around all the to intervention our year XX slowing grow by that we store is count, years confident only increase done store this beyond. the we and as are hundreds of stores the achieve will this our closures we year. result in

to we distribution bulk distribution relief pressure announced our centers support are supported our X regional enabling furniture of this year, midyear, centers. would and be opening current All forward in drivers these growth Earlier that by and investments. key we growth

in to pleased opened second week. are inventory will our that first our August next early announce early We receiving and be FDC

interior enhance at and than system, be a of Additionally, repainting store transportation are been average new Future get cost XXXX early we of calling program. have remodeled within prior initiated interior and for XXXX to a much per vestibule brand our experience exterior during the we across will included multiyear The pleased $XXX,XXX, a wall the This prior bathrooms brand not our has new stores our we distribution floor experience, all with to program, our we upgrade pressures which network. These Project Store performance run. Store approximately mitigating cost QX, will the long the to our new stores than graphics, create conversions. XXX repair, Meanwhile, in stores experienced Future and the signs, a program. crucial the lower management Future around much Store are our Refresh consistent which the of our of will that lower

whitespace hope presents. is we quarter’s in in calls, continued and As evident. have you that upon Star The Operation previous North I discussion in belief our impressed in have I this increasingly making potential underlying we progress growth resolute both and opportunities the are

increase Before to will have by headwinds global demand I the to a ocean back seeing to handing our costs impact supply we discussed, and over Jonathan, in freight. increased want and import the continue chain distribution to COVID, turn resurgence which in for QX to expect we Prior business were recent global QX. we driven of

of and the furniture ease COVID shutdown port in segments have temporary Asia. the by at seasonal The suppliers’ seen XX and where and closures China exacerbated few that restrictions currently Over restrictions. targeting of that is produce past to sourced, categories at temporary factory ability Vietnam, dynamic port months, as the day our Yantian, the elsewhere is under government September to our are Vietnamese impact we scale.

the Port caused the the These terminal Ningbo, uncertainties In the a situation reopened. developments now although by of China has of in and mid-August, closure fluidity highlight experienced addition, COVID-XX. ongoing

While challenges, into these comps will both to impact by in our impacts. increases and our a QX. but continued underlying from estimates sales in these which Jonathan remains inflow due of to moment pressures as our quarter, facing we in that current are Vietnam. of The of imbalance to second be the container as are In strong guidance delayed as strong bakes some in an product, business cover summary, X-year demand near-term evidenced expected have particularly resulting transient, due well are they cost supply

turn are we ever financial as on Star are significant quarter supported and to the that in now drive our by strategies growth more call the outlook. for over our insight confident Jonathan years, making. as our for results I will investments North the Operation We will key coming

Jonathan Ramsden

and morning, Bruce. you for joining thank everyone Good us. Thank you,

Bruce investor great by the the accomplished As of XX.X% XX.X% I summary XXXX to billion, to of net decline impact our much of financial second as for our this so want add by be X on for billion the a remained from decrease value openings our of their our teams our stimulus great activities, to of incredible decrease providing points experience, to A quarter great on offset referenced, Page results efforts. driven quarter customer. was year all found thanks and assortment The relocations. associates nesting last focused quarter for lapped my can ago. sales was sales partially compared were basis we a an XXX impact second $X.XXX a store as height comparable presentation. $X.XXX in and Net on year’s

low store comp negative result in our driven inventories. with billion impacted were our guidance comp DCs, to Our XXXX’s XX% total at driven $X.XXX slightly which was basket challenges by up size. X adversely labor of of a double-digit off regional by XX%, X-year Sales

referenced we multiplied when quarter basis. $XX.X note, are a QX and guidance X-year X-year in income side calculated million coming on comps Net in million of quarter. quarter comps $XXX.X additive will forward, in rather within our the than that was going range XXXX the second to EPS referenced be call for this a As million $X.XX, doing on an $XX.X into the was so compared All we XXXX. for Diluted basis.

offset for owned year’s reported adjusted year, of sales. on we reflected quarter distribution expenses, reminder, on a continued of a $X.XX slight second the miss the strong our which X of this EPS sale excluded EPS As centers. which last gain control

from quarter. and XX.X%, addition, during QX we basis $X.XX got gross points margin was the basis benefit from second in points In XXX our rate XXXX rate with for last share XX quarter line approximately down year’s of below repurchases guidance. The

expected and headwinds down reflects cost increases initially of distribution margin markdown transportation rate Total expenses quarter, than quarter and freight last the were despite XXX headwinds first cost greater for offset by freight close gross deployment. slightly of contraction judicious and year-over-year. benefits, Freight million beginning were expectations, pricing $XXX million, to Our points partially causing $XXX including depreciation with margin costs year lower than pressures. from basis

basis versus XXX last versus points expenses leveraged XXXX. year, deleveraging While

for of the last and X.X% us to above in year X.X% of margin the drove quarter an All XXXX. versus X.X% operating

X, XX.X%, Interest headwinds, freight to closer the the improvement been margin quarter expense operating million $X.X in XXXX. from balance was year. light last the Valley on we the we and secured distribution Excluding our basis in same would for the and our million the point current center second connection $X.X quarter. debt Apple fee a loss recognized quarter a rate XXXX of $X.X million, principal prepaid the our incurred on add-back. primarily remaining have the market prepayment a down on term The of last strong with increase position million liquidity million $X.X extinguishment In the $XX.X In under to equipment. X.X%, to note impact the prepayment, conditions, of XXX income June in the XXXM second quarter XX.X% tax executive with rate is driven by compared year’s Section compensation

levels Moving second supporting guidance. inventory on to our QX maintaining by XX% was were of quarter low to atypically strong the of improvement, drive quarter to balance sheet, $XXX.X term total to inventory while by ability beginning Inventories a of ahead the performance. XXXX. up of X-year quarter was the close lapping in our slightly XXXX driven The million, up third increase the X%

for period quarter closed million million stores. cash Depreciation last footage of were opened equivalents and quarter million seven $XX with the year. X,XXX year. stores was no expense and in quarter of $XX.X last compared and the expenditures to $XX and XX We long-term we stores approximately with same We than million. second selling QX with million ended million, lower Capital QX, the new $X.X square During debt. ended $XX.X $XXX total the cash

towards of of of sale $XXX our reflects long-term cash distribution had million of deployment in leaseback year-over-year previously reduction and at from under reminder, million second $XXX million of during equivalents $XXX cash The an per cash $XX As centers payment QX XXXX. the a approximately debt. proceeds the share the million and of $XX and repurchased XXXX, end the on and million at gain our the we for of shares repurchases X.X share levels of the announced million There average our quarter remaining is sale of $XX.XX the quarter on end as the We authorization. taxes and cost leaseback.

For average have the of at shares repurchased an including X.X we commission. cost date, program million to $XX.XX

declared As quarterly third for on separate share. XX, of Directors today, per dividend shareholders record announced XX, of XXXX XXXX. cash in the quarter of business This a a of release the to on payable XXXX our September is Board $X.XX of September common on close dividend

as noted a Turning earlier, and margin chain and to as guidance, Bruce we COVID are issues. supply facing significant Asian due challenges recent of disruption manufacturing to sales result

In expense addition, labor actions retaining additional hiring related we and ensure competitive taking are the in we incur half will stores and in in are back DCs. to to our we

third guidance remain impacts, these of fluid. XX incorporates and best they guidance to can XX of $X.XX the although of be compared XXXX. highlights $X.XX per found of below diluted share range our to estimates the on $X.XX our to for all of we Pages investor the Key our quarter, per Our expect a presentation. In in loss earnings diluted quarter share of third

of per we full in the expect the year, range For to $X.XX. share earnings $X.XX

represents third quarters. represents earnings. XXXX share The XX% last does this plus may to any decline adjusted it in fourth $X.XX, or not While EPS growth repurchases the of to year’s complete guidance incorporate we diluted a

up points X-year be The expect to third we mid remodeled from net based new sales comps offset stores. sales guidance XXX negative a quarter basis low basis, decline double-digits. On benefit single-digit a approximately comparable and by on is of a

a As delays. Bruce X-year baked QX to due some ahead receipt referenced, got but of as QX, quarter to our comps good progresses start in running have has moderation we with off the

again single-digit comps negative X-year comp equate For the a XXXX, we on a versus expect basis. double-digit year, which full to will low

full adverse Our QX in of and approximately related manufacturing $XX shutdowns especially million to outlook COVID-related year bakes in Vietnam. QX sales impact in

is in driven rate quarter the versus points, goods XXXX, previously down basis and Versus to cost XXX – in our essentially headwinds, be the year, approximately that in points be Recent QX freight XXXX, freight Port rating to related. significant impact a third down resulted container all of Bruce rate as of approximately of will basis China XXX the by discussed. shutdowns gross increase expect We margin the rates in expected last to have QX. Yantian

and from full a XXXX points, down approximately rate rate year, now versus gross basis gross in points the margin points XXXX. expect approximately impact of resulting XXX basis freight XX XXX For margin we basis approximately being versus

pressures continue expect versus and at to reduction. move distribution the both expect With we opportunity, We optimization QX levels, to gross SG&A in abate and other including and sales to as areas our pricing we trade of forward, XXXX. predicted by see leverage promotional QX, we driven XXXX to and full four year, regard will to healthy deleverage to up year versus in slightly incremental our investments and show last centers. In dollars labor expense be expense margin

of more an which new driven full These dollars chain supply additional will of structural by expenses, focus savings, our SG&A expense of forward and increases expense. equity higher in leaseback centers, compensation distribution year the area and the expense distribution investments will other ongoing be XXXX, priority. centers; than sale For strategic by impact to investments; our the up $XX remain full of mitigated including and million year, be

expect to to $XXX will capital XX continue We to million XXXX around around of openings, around expenditures be be which relocations. million, $XXX XX including store

under new total grow expect program. about net XX Our of also in XXXX. our by store we count to On outlook wave includes Project Refresh store first stores CapEx upgrades basis, a the

store accelerate to and XXXX count beyond. in further We expect

support our has years opportunity investments work materially the said, coming in necessary the grow the that. count our validated and to Bruce As increasingly making store to we are

increase expect a to depleted year of to inventory ago. reflecting levels We versus significantly XXXX, continue very

we earlier, for referenced supported Bruce holiday As and sales early our assortment, by strong higher levels. late inventory are seeing early fall

be We around versus QX up XXXX, to inventory improvement. expect ending reflect healthy XX% turn to continuing

heavily to receipts impacting increase will include Overall, over support expense these we QX We $X on chain and X-year and months, cost focused XX of some sales our accelerated will in sales further sales quarter will know ending additional left inventory, million QX, XX increases. QX. well at those and as lawn we a the as QX risk similar a challenges chain of third in and on as forward, garden which receipts table the drive supply expect chain disruption. We early inventory end resulting we are around be seasonal supply impacts go the past and supply sales by minimize recapturing driven one, of challenging the

our management. freight to our margins X-year measured for healthy underlying trend effects comp with expect strong we adjusting However, business supported strong after expense continued by remain by

ensure hard work we continuing to to and moderator all-important address continue XXXX as possible to your And so begin season. beyond. the very underlying as to are well we our now forward that call over demonstrate strong we well back We positioned to can in the I’ll questions. to holiday performance look for – turn

Operator

you. [Operator your with Badishkanian from Our Instructions] is coming first question. Thank proceed Wolfe Greg Please question with Research.

Spencer Hanus

with headwind any talked you’re Good is Many supply impact basis color Hanus are Spencer I But long-term And have seeing? freight. XXX earnings for the morning. then power in from look if expecting the sales any on wanted of This in start just XQ. points to Greg. area. that another out challenges you peers out XX about that your from the the on we chain XX issues you months, business? to And impact called on

Bruce Thorn

a what XXXX. half some into we’re don’t Good impact Yes, back the top morning, on forget in question. that expect had the we for also Hi. the of of Spencer. freight will this out, seeing being And we year, that looking eventually tailwind. Thanks turn so

in number cumulatively, we’ve a it’s seen So really date. of really, to the terms big impact

which then of And the are a at tailwind but and going we have be many sales, shutdown think, other which time for regard demand, talked for not the on sure QX. have QX as and the them. supply not point, had impacts. when that think, called And tailwinds, we due around and is prepared get from a impacting is we we potential With are turn, exactly selling that’s point. going gross comp, with to to Then have million that us is, at regard that will point a a other receipts that sales margin. we’re we is year which remarks we normal least Vietnam, expect we normalization a in in there is in the then season of expecting – $XX single we at there there, there we there, to We’re us some alone about, rebalancing in to impact to to some cost manufacturing in do out issue smaller DC this biggest in

we turn overall, headwinds time, working through, around expect those rather them to later. over big sooner we’re all but of some headwinds some So

Spencer Hanus

in think you’ve mentioned just more I to provide start quarter-to-date? XQ. you And then comps comps script, helpful. Can And strong some that on how the are got That’s are you where and weighing spending, quarter snap, cases and there different all your other fourth puts could these you delta rising back-to-school the about all thinking these and takes that impact inflation, from out business. things color

Bruce Thorn

Yes.

into sort that’s baked in into the sequential to implied in anticipate is the is Vietnam in bakes and QX. moderate. do on ahead as heavily then our some full QX, year guidance hit comp And in driver Again, QX the that deceleration from rate there impact today, the that’s QX, are to X-year in that playing pretty QX but impact a high Vietnam for then will delayed In single-digit The impact have running going we We to from was Spencer, of primary sequential plus QX. is range a of that. bigger XX%. that comp late and start QX. X-year of deceleration So receipts are basis mid into for our we

Spencer Hanus

Thank you. Got helpful. it. That’s

Bruce Thorn

Thank you.

Operator

next from Please Sandler. with Keith your proceed Peter Piper question question. the with line The of comes

Peter Keith

morning thanks. Hi, Good everyone.

pulling the maybe of next seeing, line year? with and understand a elevated questioning your we so margin Just looking at this year, next first expect a here merchandise continue Is end, presumably around of type of last the to of that even pressures impact gross the on you’re would half freight out so that you look a in year this as magnitude we to type this spring of before you’re follow-up the freight. then lot

Jonathan Ramsden

Yes, Peter.

parse is because a there. So bit on things out little let a it couple going different me in there of

one also got and which and I then in higher were general higher transportation additional margin. costs the gross expenses, of which specific in then out, freight have then some increase We directly because some in rates, freight, seasonal domestic the have call higher we in is QX DCs. bringing of of to expense And labor we processing our is this reflected which distribution in for So $X costs in related million receipts early.

going is in confident in we’re seasonal we there. further clog and QX seasonal We chain, we’re and the in year in, bringing inventory, – supply which last don’t have time QX. know that to what we back to sell we up So undersold going we’re can

that So make sure we we want have to inventory.

effectively related our general, back our we’re So be have rates sales, expect back a kind one-time a comment time. XXXX, some XXXX at to higher rate again, inventory that to we in in bit over in to you of do freight gross I’ll expense will to prior Coming on will incur XXXX. going year-end go little and to specifically margin normalize in

a sure transpire. gross exactly and impact. But not currently ‘XX significant rate our of very that freight will have now We’re the accumulation we in impact margin both ‘XX when

So do know we exactly we that that’s to turn don’t going be. but around, to when just expect

Bruce Thorn

bit is more. just this add Bruce. to a going Peter, little I’m

Vietnam. what forecast get times Yantian much I long this going of X to And to what with Xx all we’ve X in of think they the terms before product pre-COVID containers the cost for how for lead race it half and holiday meant weeks. it’s out it’s were and in the of China Ningbo, important we constraints year, baked chain reiterate given supply that into and back seen to

as bypass, the the to well all has FTCs. DC expediting so as our freight. through addition So, it holiday led there, pop-up of side that gets in as of us our all increase ensure obviously new of a Once product. quarter state baked as That’s fourth inbound we well

normalize. a good tailwind, actually in So ‘XX, normalize supply in pretty the network chain will going chain. of our be and be that after freight situation will and goods supply a better believe should increases much This we inbound cost into this investments freight and we will

Peter Keith

to Okay. then And maybe on. That’s great. just follow

year down XXX. XXX margin the is I think gross guidance you about the basis impact is points full freight So said what versus

how out, well? some you in those to next from basis maybe it still even flesh underlying regard seeing looking points netting forward as year driver Could then improvement you’re that those gross on reducing build DCs, XX those initiatives. and a margin out with out So does trending shrink, are of as to of your price optimization

Jonathan Ramsden

markdowns promotional towards just the been now we’re lower standpoint. I’d from house back we’ve efficient benefit intensity, we’ve day-to-day friends much targeted whole events from more events. moved our say has Peter, got as a Yes, lower and are traditional from and seeing target promotional pull They biggest we better more the and dollar family

We’re about different talking our customers getting and we’re scientific, more but they promos. to how respond

from So tailwind we’ve and nice a markdown. had promo

We’re lapping continue a of benefit, get we a that pretty nice in QX. nice but to benefit

to the certainly So Shrink seen food of distortion in relatively been over X-year markdown seasonal to consumables, basically incremental past. we of mix and promo the furniture a as what implement bit tools we we’ve little we’ve and are fact our sort more flattish, opportunity in a a margin had categories little relative flat. We’ve benefit, had which of is that’s and continue are but terms the lowest has tailwind, to relatively optimization positive driver, and believe a comps. low given been of there the there time type

helped a us that’s So too. bit

to impacts And of the the will balance some of through continue roll those year.

Bruce Thorn

add on to like pricing. more just bit a the little I’d

keep spring put Just since those raised have stores. out mind, to we and prices our in

value taking fine points. QX. line It’s and strategic We target balance We’re a and price cost value focused had obviously are more QX a definitely on our anchoring entry in between increases pricing.

the the we to point. this products resistance pretty our to more any across offer much uniqueness harder customers. We the and on focusing price products, value shop seen inelastic that we have board have The markdowns offer and and basically taken not increases at

extremely I during despite our our time we’re nesting of value much with think lines. to priced, terms stores levels and the headwinds freight customers supply, proposition trend this needed customer in getting And customers. them competitively all keeping satisfaction in continue the at furniture to the our and

Peter Keith

feedback. the Good for much all so luck. thanks Okay,

Bruce Thorn

Thank you.

Jonathan Ramsden

you. Thank

Operator

with from Our next is your question. Joe the of Feldman, Telsey question Group. line Please Advisory proceed

Joe Feldman

that? consumer for I the seeing the I Hi, guys. guess they to lap consumer is the had able consumer. from question. that of It core half they about And this or wanted stimulus the the as Thanks spend. are the seems to how taking health thinking are still And are of your a into lot year, consumer my like and how in ask year. you importantly, year second lapse, to about next last you start you of

Bruce Thorn

That’s remains easier. pandemic question. amidst trends driven Hi, because little Joe, healthy. have changed believe that bit. the really some customer their We e-commerce the COVID-XX trips I’ll take a shopping consolidation Baskets up Obviously, in has through made industry. this

spending are items, tremendously. little too important shopping coming patterns product and services the seeing seeing expedite as leads like in our scarcer good very and we on position. product, to They for product focused This seeing weekdays. so at wants XXXX. And our the and Living we’re really to over is good are anticipate XXX% see the we’re open product holiday. a started of know to also guiding as We’re pandemic and that pretty that out with line Halloween e-commerce ticket bit Harvest They and is getting the holiday big in are promotions. up they on more season. and holiday quarter, Christmas has time they why grow that Real less shift typically our start all their are now, home. to that benefit things is That’s we bit they She’s – weekends for a well QX. because business of that us Both since promotions. out seeing since as There because much the offshore, we’re holiday this from that been Broyhill to less going a point. and our a year ready very last the gate, good be for fourth She it’s their

more been there where is some really than there’ll customer. checks, better stimulus I maybe where restrictions through be California, about have buying in doing expect We the also good and moderation spots see trends we feel lockdowns. been certain the cycle vacation to vacationing, as that but customer all they our

our grow, up sales our continues versus they to to of in this Just represented QX X% have said our that to age these XX% and lift restrictions XX first half before, now in XXX spend XX. of a captured QX XX% ‘XX. spent but basis XX% last this note, the were in customers’ new getting of our we and year XXXX And in last that pandemic We’ve of increased transactions well. QX are due as younger rewards and we also XX% in lockdowns, growth customers, to customers new and and the seen the point QX fall, new to in They QX. year,

improve. going value into good believe checks improve to will I and we’ve the stimulus think our while going in will good marketing home assortment, I And we’re So got good we’re count proposition, to becoming And the that of will on, bargains think in-stocks future. going our treasurers. a our ‘XX, continue hunt our improve, customer will I the and store subside, for grow

Joe Feldman

it? that, a And of to Bruce. little with but what I – you being efficiencies little mentioned that? just the for deeper much a just to It gave a like follow-up, so on tight dig about labor few creating DCs. dealing wanted you’re you’re doing a examples some wanted of how to ask as curious at Thanks I some And attract great. and labor in That’s you was sounds

Bruce Thorn

first with off, great got a want work Lots, a I got to culture and Big look, people Well, great Lots. there. out we’ve We’ve think for Big team

basically competition the areas America. and most the labor across in the distribution I find concentration of the points stiffest of companies small high have typically because DCs, think, same naturally Our just

in hires. got that the help sign-on We’ve that bonuses have things of those when we’ve the that back DCs left One systems is come and us new base also our bonuses. very We’ve productive stiffer increased place But increased our they referral We one in Tremont, with our effectively. wages. incentive compete Pennsylvania competition. for are like done doubled

for the great through the great, We discount, is of XX% which also extended a our incentive year. to employees employee end from XX%

think lesser set got there, have hiring. stores again few a got degree. Our got team about more stores that than know might but to a we well XX% We as about up, we’ve centralized our we Once of want. are much impacted, – we that we’ve we’ve do openings

store to we once those stores, over place discount. the managers in again, So X,XXX new We’ve back date, associate help got hires in actually again. liners up staff and our started bonuses have we’ve hiring retention and

hiring gig and on also working and exploring pace. also We’re same-day

So, a lot of good things going there.

full solid, committed just to in round good from working pretty even really give turnover. Our team though headquarters we our building, to shape the you and is remain picture, are out much there, The this not home, long-term just they saying growth.

comes normalize. is a the planning increases, base we’re So little But yes, it wage bit. do that into stickiness we’re future. We will dealing think there and subside it They’ll when with it. to

Joe Feldman

That’s Thank Alright. so helpful. you and quarter. luck with third this good much

Bruce Thorn

you. Thank

Operator

of proceed next Haas America. with question. comes question from Please of The Bank your Jason

Jason Haas

the then I performing? Good of Living it’s morning. Bruce, rolling And am question. this the state curious have just rolled obviously wanted on know you you color follow-up Could the rationale strategy for just to taking more morning. Thanks out. I and good Hi, how those numbers some what get for you I out you brand. Broyhill. get brand Real that entry-level my

risk if curious just am some So, I any I of Broyhill guess those sales. cannibalizing of you see

Bruce Thorn

for us, is for us. brand sense goods to pull consolidation few private and through good Living Jason. together brand, together under our own an question, a of goods we call entry-level really branded label the basically put brand label been It’s own unbranded that a Great It’s it. into one brand, as actually made turning just private Real price points the covers and comes year the are The entry-level Real want quality and is Great soft other home among value half in $XXX points good price. home, it’s growing. of which create at sales and Living. million hard through furniture, line, that Broyhill lower total the a price customers It first over categories. great below in for

this brand. to billion $X We a be expect

to and sales in Broyhill, around expect a have $XXX $X efforts And be consolidate it will We do quite – sales. which million said once categories, complement marketing, signage able our is nice again, brand this soon. plays all to last in of I is once more which will – again, once be billion also over relatively we which our doing is all which the and year’s – our better year-to-date, well. it’s than and best is It’s

how that’s we have it. So, positioned

long offering out have more has great private own is or got Pestello, and our label going really as in best this Chief make there the history brands retail, management, a customers. our productive We and probably of Jack be Merchant. for value He us to a got

Jason Haas

you then Great. follow-up, Thank close-out you I environment. in are seeing curious talk And what a if about as you. the am could

as are inventories terms definitely growing like know base in I some of you of are there weren’t Sounds low the you relatively off big of tight. a in categories close-out.

are So, just availability curious about the that you seeing there?

Bruce Thorn

Yes.

engineered guess of kind with big rest way our go the – But them close-outs I explain like changing with source and close-outs, talk traditional the hand-in-hand they it close-outs are buys are the way and we of buys calling would first to value assortment. is that big products. up I about off, made of First we and our

other mean, a categories, all just this open we opportunities. to And given and is are go great see supply from all that Our constraints ‘XX. to really going challenged little of the traditional But are tight food in into close-outs, we I we seeing up good COVID-XX. still. know consumables as source we continue

supply overruns, the I believe, opportunity like are you the in basically, with product in of cancellations. So, going know, a these especially product healthy the are get back product to of half ‘XX, we in nice deals market, types chain traditional close-outs more the of year, to These or backup this ‘XX. see

examples, close-out. of had Some TV great we a the

We are their appliance one orders. of the canceled sellers big retail

tees like seeing branded. We are T-shirts, things graphic

really team close-outs. can value. for product and put with have type engineered are any they other the manufacturing our are or leftover of These The close-outs, does that Jack collaborations a product together that nice they sources parts

sheets towels and lot in opportunity lot off-price of a this, of this a off-price bedding, fashion in see area. You

see up in these pop will patio, things. furniture You

garden our is hoses we orders and things All go this lead see the a will them great valleys really value is their expect making and on to team penetration which home that bringing neat opportunity a do that. manufacturing seeing Jack something cycles. to of helps them lead We have value long What this lot of a got then are like continue absorption. coolers got works their our value And we together way to bring in hunt, during times us really and their with in and the and peaks it’s will have their put is grow in value with manufacturers, will and off-cycle we valleys to we treasure demand. long in manufacturing they the way And time get that this his to customers, to Obviously, meaningful that customers. see and manage of and to XXXX. normalize grow And like source.

these for continue grow. opportunity to the see we big just buys So, to

Jason Haas

Great color. Thank you.

Bruce Thorn

Thank you.

Operator

you. proceed The question Please comes question. next with Capital. the Thank of from your Loop Chukumba with Anthony line

Anthony Chukumba

Good morning question. my and thanks for taking

if or that was stoppage? dimensionalize for for the may looking mentioned Was just was Thank labor DCs Just increase in can thing, that just that that you. you turnover, clarification, of your talked wondering little that? just like your impact you your about comp. you X work a the challenge And sort I stores, compensation second

Bruce Thorn

the it With a first the more. DCs, we bit Northeast business of the I in this, due well. the DC will But that were customer part in two take immense of real fact respect Southeast. the the was and the lot throughput was the maybe little can Northeast, through Jonathan a to Southeast other we and in was labor as immense and in add do and to the put demand the and need fight the focus and strictly to that Pennsylvania labor Northeast was area, our for

product. stock those forward And in fully be from away a to takes customers – things model to we going opened That’s going seamless that some a bulky the They of in us continue in the like though, leave It’s sales in does, get in DC it to XPL. the stuff product store what distribution the up in a it regional stuff ships together directly on It’s QX Pennsylvania sales coming to also furniture, keeps center big through increase So, then to just DC that two be frees caused receiving the table. more it the Northeast. up and places to much will our functional to way our variable QX. big shipping. and in and the ability that massive and with and improve capacity. or and capacity keep Since

So, we are doing that.

We the the down are Southeast. same doing thing in

opened to growth simplifying up the as really as forward. we our make the in meet distribution – center existing making meet distribution sense add these our place our have can they We a demand And going grow and also forward good customers’ so there, company. we will of with continue DC in network, FDCs

are In that Is I you stores, think asking correct? the in competition, terms of labor. competition the

Anthony Chukumba

in I just asking about of was No, sort stores.

you. about Thank on was could give increasing something just mentioned I wondering think little wages. I you just if you there that? more a bit detail And was

Bruce Thorn

Yes.

We seen out where sense given makes payments competitive base $XX, tuition the incentives other selected across things. raised raising and the there over it board, wages too like have have companies We markets other situation. in adding

base We our have raised wages.

we anyone employee like massive deal. I needs. product that total season it And things up bonuses one in sell, continued discounts that about holiday the our think I have that’s state best out through the a sense, there. And the probably from means it’s lines increasing XX%, rewards we of well as given mean, the a basic to XX%. We to discount think adding as

So, and enjoy it’s a massive incentive they that. them, for

So, we a fighting are fight. good

the store enjoy team. employee We is labor when more have highs whole what’s if this and we want all-time And about engagement, this down the down reached it to think competitive highs, thing, important – to hire will, record join level. continue manager on I this through goes level people. We They to staff to wages. you comes store

Anthony Chukumba

Thank you. That’s helpful.

Bruce Thorn

Thank you.

Operator

Thank you.

Please from Karen question Next questions. proceed of the is with Barclays. line with Short your

Unidentified Analyst

growth Karen obviously, digits from for in lot for low-double XXXX the half high-single back a EBIT far be digits. like despite the digits one XXXX a in EBIT down current sales us compare on maybe With by dollars the in on taking based when your EBIT I half your to Jonathan, being for digits [indiscernible] higher relative results guidance, and Maybe year. of seems XXXX, half two-part this is a of question. low-double why business big versus taking dollars guess growth in for anywhere your Thanks we your can your beyond This on are it your it Bruce, financial Short. the could sales my Jonathan high-single certain question assumptions, to surpassed first impact? you understand outlook, back Hi. but to freight hit to depends help

Jonathan Ramsden

dynamics color I play. of give would to in Yes, be happy some on that. is There couple a

the have particular, significant. we any much was the the second have less the We the the the – of back than will be drivers half year, some relative benefit is First significantly our comps of that year, In benefits. stimulus the sales this back in year year first And comments. quarter don’t the in half where to did year. in first of current we quarter, of of higher prior the sales X-year see there half in of referenced stimulus

half dynamic charges the significant the a to we a to going in in be have very going the just including got year-over-year the impact is the basis. have that. flow-through sales of million Then back specific back significant of one us Freight are very half $XX and about, talked a we is why also also year, that’s challenges impact year on which different. around the Vietnam these of reason in So, little issues

We right which growth, in structure of the sales half impact the back year. a $X does supply half got in The support impact our year but to also incremental thing that XXXX, expense forward in essentially from something will the QX. is investments the forward of hit expense talked have is incremental chain back million we the centers opening which a of distribution in didn’t will the do, That’s of absolutely future half year. it that first we the pull about, of the our and way have in the us

half of dynamics you passing most So, primary bunch through of deceleration we in in half different think transitory, are that the the there the are see the the drivers of a back them year, year. back of of are but why they

Unidentified Analyst

And you initiatives helpful. to that the next and of related bit to leverage? within That’s optimistic SG&A to variable it enough rolled of what that, XXXX, Thank are the share? levers the may initiatives drive the Jonathan, early what are about and quarters of about maybe year, vast Okay. are little the one the guess this extent but chain. positive for if to you. you Line majority that vast to minimize not the the have know be And those Queue you most XXXX kind bucket Queue a talk that out of comps some to do the for now to I the I initiatives you in Lot some that

Bruce Thorn

year good $X.XX, of And a I that’s Jonathan. know excited. impact, darn said where past over about us. could and part between we despite for that moment he when And I a that to will think deliver to want in what those been I a first I we hand ago, this it going, just reiterate take that $X.XX that’s Jonathan, am with impact year. loaded will the headwinds that from just fully it’s to and has then and pretty where all company the

there like your now adding had very They Gallagher. The We and old out heard They over Frozen, excited Coleman, in its a games, the in continue of talk of with you holiday. are see going going theme Queue on. July things have also in all what’s X,XXX to Holiday are the capping about we want fun, lab, of arcade innovation out in Line and kids. themes right is that is got well. lift with shop half good We three points to Lot to days you Spiderman, get are is me for about with moments would stuff. lot licenses stores. great celebrating to stores. now, Lots good now the are do those These we be Disney, The life like there

continue have up so if New you with can Lopez burn got that that. better And just bacon imagine And off we fitness living – will We space in to toaster extremely with more follow see we in get it just equipment, The and to Year’s you Mario can the to bacon. end It’s continues The allow for planning, longer lead Line. productive, and our Lot that Queue us. front continues better innovative customers. times better with

are the We Queue to adding in Line, bringing season. seasonality themes from

you there, the will see store. more to point of impulse in a the stuff lift coming items. That’s So, adding and more

to categories. continue did things We other a that grow. can brands we about see this, when we furniture both as what Keep but these to Broyhill as be continues of excited across it trade-ups. launched of two not we am through consolidate only ‘XX. better Broyhill getting incremental mind, I got result expands sales in some have

coming and a to excited great and up in more customer and trading starting Broyhill to customers customers. customer are generator. are what and customer to they more a am non-Broyhill Living about more ‘XX, us, thing, us get and are are new A it’s I the is XXX% same the smart the loyal stuff. they same than they stickier, spent they and us, with Real doing We

think localized store to we thinking as great ever. our should the value, – I efficiently, and the we team work products, can in more value. products so and are that what engineered more the we market be are are eventually, forget, just doing, and we nice bringing That’s area, team are in more with allocate pricing doing thinking product offer where doing planning I don’t the build are we about Joyce to buys, whole box close-outs, customers space about big our sufficiently, this Jack really and the continues love and can more we today, the a more more we and really how grow efficient. significantly buys. can source close-outs, trends that, the beyond, got I job, very way not ‘XX replenish team make penetration climates marketing have effectively clusters than are value marketing mentioned, our it as as And clear We better big optimize traditional how

is better As we and go better. marketing just into getting ‘XX, our

BIGionaire in never to new that campaign. customers, XX% in store, We again, Good just of And haven’t that. love while very, tested have all and have We lift those I who XX% from we the it. are a been assortment We have reiterate us brand customers that, see we the finding have this curated. – the excited store, got those Retta saw with the that’s rediscover and want sales, it, a very are once of are Girls our seen continuing transactions. in to and value about from that for the we X%

have life. two to celebrities, to going more are We that bringing

I Star think the marketing newness lot we when we us help because in held ‘XX, that’s that’s the have during transactions to after well mind, the traction in and have and going more right our innovation. stores. holiday or going gained operation year season. content we and a After years. in We bode back have into X X curation North And of to content XXXX, now for didn’t has us in pick our customers keep up drive traffic going

so just to that have in much e-commerce. much remove continue time, I to talk won’t about, friction So,

We wallet, Pay, added have PayPal. mobile Google Apple Pay,

Later We are QX. going have to Buy in Pay Now,

from X%. to gone XXXX, on in has conversion Our e-commerce X.X% now rate

way and how improve And for new them curating shopping big That’s the X%. shop are ways watching funnel We and us. deal. through can are experience on tools we we and our a that more with more to are customers they their

are are excited going feel are the and we in grow what really we about we So, how to about bullish offering future.

Jonathan Ramsden

we forward some marketing that very we question, closely. distribution about, Just Zain. Yes, so business with on in incremental looking part there the talked have at making are something the the cost of are centers being one being key spend your that investments we are

significant We reduction and structural with structural we cost savings, continue cost everything those can going believe to do to are opportunity as we offset go we to forward. a is there

forward. has I think can ongoing in leverage we really us Bruce that a the a to just we productivity, have low. relatively productivity, can point that we give benefit of relatively relative believe peers. XXXX, though saw associated that we sustainable All expense tremendous in the low is the big opportunity and referenced, the increase do we get we is know going we initiatives top leverage incremental line, can many drive sales when as with when because And the these

have got is investments enabling growth the that us on that and we in foundational productivity believe based going do these are absolutely we to strong forward, one pipeline. all where have initiatives a we So, of the opportunity

Bruce Thorn

think thing, sorry, I it’s more will but I just late, add a one to add thing. big

– We stores versus are growth. at a XXXX. end over QX unit X,XXX X% square footage stores today QX X,XXX X% – growth in X.X% of the That’s back at

fleet. to going We are our increase

to fleet. want will to be growth XX year accelerate That will going to increase ‘XX, go we around this rate customers into Xx Xx. Our going that. to beyond that’s our incremental us And

the there States. got opportunity and United talked more having out script, was have in about a the Jonathan We across huge be mentioned, opportunity, stores as relevant by to more

Several billion $X for billion for a over years hundred be us, us. going next $X the And to project so stores another – that’s in is that’s project well it’s where X going.

Unidentified Analyst

very you good and much Thank luck.

Jonathan Ramsden

Thank you.

Operator

Thank you.

from Brad line Our with proceed Capital final question. the of KeyBanc coming is question with Thomas Markets. your Please

Brad Thomas

structure thoughts $XXX your on Hi, running $XXX the capital and million you potentially bit and you program. morning a you can little to long done this But taking share Jon spend structure you talk million questions. capital for balance little more have? cash Bruce, and my thanks about One for a to and that all, good repurchase on about continue have

Jonathan Ramsden

I take Yes. Brad, that. would be to Yes. happy

liquidity our remaining don’t an liquidity with there basis. think and certainly we current we on little excess million So under authorization. $XXX today to tend have in still a point, an We sit liquidity on we excess our needs, core position to ongoing your have to relative

store want that to a chain Refresh, supply capital. particularly in adequate sure we our Project have to count investments ton obviously fund plan deploy to we want and investments. make We So, we to we internal growth, fund of opportunities, capital and we make sure see

high-return filters those feel So, to to are want we very and certainly shareholders our return valuation capital we we with prioritizing expect be then liquidity. comfortable make we internal to projects, through funding right our to will repurchases liquidity where position. appropriate but But sure continue share now,

Brad Thomas

Halloween the And outlook Great. to just doing last on encouraging for Okay. well. hear the follow-up XQ, harvest one is that

are time you to point, think be from Just to loaded we And this any and unusual you or need before that headwinds when what have be of what delays period this at clear, you all inventory point know – gotten point assuming locked merchandise? leaner holiday? do in at at the you through we

Bruce Thorn

in now. recovering, We Obviously, [ph] is backing good we we plan intending right we keeps weeks Vietnam Brad, weeks shape timeframe, to Yes, X X their We up what know but good like know feel lead accordingly. there question. are with time. those

mean, is shipments. come and Christmas Yantian of XX% of have our And done what I so out Port. been doing for trees we in we holiday have prioritizing our example, what

want very with market in to in you think time. done that’s we make have a that, job that. I So, sure And prioritized good

Plus mentioned before, popped bypass anything very and good that a have I like have we about it. so nimble holiday DC lingers, else feel agile network. up And we

ready. that to stores DC functional are and right QX, we literally of that to go. products And DCs ready our FTCs got sure our have expedite that we fully QX in So, it’s those a handful make are two to

the year. hits it on this so this will it’s have in-store. holiday important, that signs And once U.S., a left and good And And to It’s So, going show we we year. also got we to share. win want expedite play table early get holiday to it the market be sales it have the People last we to a season. in.

new And way we to ‘XX attract nice customers stock that good so to bringing we QX comp we those want sure are into then beyond. and and make a in in in meaningful

feeling So, are about we good it.

Brad Thomas

you so Thank helpful. Very much.

Bruce Thorn

Thank you, Brad.

Operator

you. Thank

XX the XXth. does A Time replay reached gentlemen, PM end this today’s and teleconference will September at call this Friday, We August our Eastern by The Ladies webcast. Eastern of question-and-answer will to of this replay XX. and on XX:XX noon have Time conclude be afternoon, end session. available you

XXXXXXXX, by Toll You replay confirmation enter followed the can toll-free replay enter the XXXX-XXX-XXXX replay and pound by sign. XXX-XXX-XXXX pound by sign. dialing XXXXXXXX, access confirmation and followed number the

a great day. disconnect now have and may for participation a you today. your thank You We

Big Lots (BIGGQ) 27 Aug 212021 Q2 Earnings call transcript