Big Lots (BIGGQ) 30 Nov 232024 Q3 Earnings call transcript

Good morning. This is Alvin Concepcion, Vice President of Investor Relations at Big Lots. Welcome to the Big Lots Third Quarter Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

On the call with me today are Bruce Thorn, President and Chief Executive Officer; and Jonathan Ramsden, Executive Vice President, Chief Financial and Administrative Officer.Before starting today's call, we 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. to non-GAAP that results. like focused today also adjusted on would point commentary out is We release, information Reconciliations are press earnings available GAAP in and of to today's release.The non-GAAP third biglots.com/corporate/investors. available at are adjusted results presentation financial quarter session Bruce. A to prepared remarks.I call follow will question will the turn now and the answer over

quarter the able very the one of in Good year-over-year morning, gross for on leaseback.We you our key below environment, sale thank expense our guidance underlie comp improvement on sales, actions SG&A absorbing joining us. exceed to adjusted related we rate metrics. challenging a believe were to key everyone, well these significant and QX that deliver year additional or X despite remained in We by strategy. a improvement sequential margin improvements recent all and are the which beginning last posted driven in being

reminder, store unmistakable own these bargains, As win to to productivity. communicate and to omnichannel relevance, to are; drive a increase to value, with

actions XXXX. expect enabled quarterly through deliver to nearly Springboard to for These $XXX lower opportunities, quarter. to X on expenditures and improvement factors appropriate markdown year, QX sheet.We in Springboard last balance we we on owned most result in momentum, quarter aggressively supported will inventory of a operating to to our savings. continue to significantly improvements the of manage we gain expect year fourth monetize which by SG&A off of strengthen adjusted sequential the million efforts and expect year-over-year to strong years, track a actions, inventory us an freight our improvement third ahead reduced and continue our key savings the X the is an first have in as of well support XXXX.Progress to in over quarter. track To the assets on improvement to as year-over-year achieve continue million capital Project start marking these of position and $XXX to costs level goals Project drivers ongoing turnaround, prior As realize primary the of are for drove cost bottom-line be costs, the

end net was third liquidity which momentum drive the recent despite progress in Our our on actions, back business. at ahead million the working X the holiday key solid of normal some $XXX to to season.I'd capital to now quarter the made seasonal like of of a continue the highlight build circle we've will the

bargains, As our an incredible third it to provide marked relates owning the quarter important journey on value. milestone to

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retailers' new next price earlier Big closeout us retailers.To our we our closeout growing Vice is merchant off with a time promotions. our today, help in we Every experience deep Friday bargains after fruit. a of strategic leader efforts October, leading how and create perception.And Big a in the communicating of was of help were a price the when be broadline the the with showcase Senior in Sourcing, and of in company to Black progress Lots of as launched closeout President Seth comparable Friday brings career. XX% Customers below years aisle. that's to a day, value of significantly who of responding will Our He highly extreme in to in while customers, well are and us recent our experience, series stores bargains, Whereas by recognizing market XX Lots team directly as it retail. events increasingly value, XX. almost extreme would rejoin will offers we delivering positive at sourcing also the for are with to deals value role, penetration Extreme bargains his a priced our bargains. announced engage efforts In traffic value end prices, bargain accelerate using up me. every and returns we offer to are be earlier extreme creation events unmistakable increasing a our emphasizing below to we to relates well caps and having is to lead Mark drive example bargain merchandising extreme of our would early the is our December typical off-price with through Value and industry wealth around bear buyers, report our we significantly accelerated phase price bargain bargains.As week leader of most this drive more on clear an next seasoned relationships have This bargains sourcing Seth halo marketing background spent is owning to to one continue closeout

our and getting value to of to progress continue promotional customers. our see As processes rolled and and perception customer return, effectiveness we out increase promotions a also we promotional is in non-productive customer segments price improve at new to greatest we furniture further comp where this home score. that delivered the focused refining helping result, tools to target better us value eliminate key into segment such points June, accelerate the XXXX.We're our marketing, We which as in will to a net saw campaigns our spend messages promote expect mattress and

to We focus relevance. store increasing continue on

performing last efforts flex our Flexing of encouraging more assortment, particularly in our results. as white expansion SKUs, demand. increasing categories with continuing taking assortment and trend-right frequency as consumables.It pet, stores, capture furniture creating bottom opportunities, our product shown months. inventory the of as have are stores in began as rollout and to decor, additional optimizing in such encompasses the styles which in our newness means productive our top-performing and to categories furniture and in We Broyhill such inventory more food space modern assortment in of grow in in These customer to also introducing many space our out collections, stores, well few accent of new

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excited been experience evolution better with our help improving store messaging.And the customer ability we're to of us her assortment, about have win drive the offerings showcase to value So we and continuing omnichannel. base our to

We platforms. customers' our efforts continue focus to our improving our and on experience base omnichannel digital across our store leveraging

also to with our capabilities upgraded have view influence a August our are new value product and buyouts example, availability site new she to of comp and orders big customers. journey.We've We've that new order our their untapped messaging, to landing promise products improves turn also which showcases next navigation in in with special furniture For she on customers. page features costs.We're ticket our the also biglots.com for our bargains phase system if the research only are of to better That customers, We also have design availability, Big to values to recently said, available progress and to page, through went that we our our to. closeout opportunity easier with excited of home provides shipping and enhance and split even management landing seasonal some stores. dates live comes is intelligently more to the experience, which new is This her to We're route the first. shopping that communicate added allocate system. attention every clearer a value into rollout, to single engage platform provides brand launched the day.We inventory extending we enhancing more elevated to which shipments do Lots while in positively reducing added responding focused to and an that spaces best our often work with excited minimize

QX.These reductions, engage This Eats new in key our drive to and of we're will XX% we're it to last partnership actions turns be bargains marketplace Just cost the Uber bolster known important is time future. inventory easier key sales in and for adding holiday and growth, younger The allow traffic action up nearly of through suite customers CapEx season, year-to-date us our structural to efficiency. advantage will X take brand the marketplaces. productivity the to for already through drivers making by with our

efforts well and minutes. doing we a with will on As in to more track mentioned, what drive I are productivity about these few speak we're Jonathan

year-over-year largest we were care food Jonathan, scramble overall gain sales we seeing focus procure reminder, where This line pieces specific through will of closeout a key of the assortment moment sequentially complete happy teens. regards momentum optimal of bargains key assortments an primarily clearly noted it lap to So to in us a reset XX.X%, we we Trends high in down Comp well up was pass aided year-over-year benefit performance saw up know for into despite decor we I were sequential consumable on offering by And from improved fierce not comps due to these to to as items able positive aided term.I was to wanted.As I mitigation XXX our in high will make to them margin categories, challenges hard the rate well previously it we home seasonal the our where significant improvement to hair as we purchases, better well of we XX% due QX, negative.Customers space lower-priced our ticket the X activity.Looking newness Furniture, declined the encouraging already I'd and sales United of efforts furniture as abrupt relative to to Christmas navigate, were items, associates the to we all translate costs in to our we I lean in combined overall work stocks sets a continue to and basis. we're guidance hygiene The and Furniture oversized the benefit bargains, an glitzy it QX, sum promotional to ago, the one to void, on performance QX as in a these fall.Before Despite seasonal where less competition in on would and thank not and call accelerating such like bring expect basis on efforts. for significant their in the will about we in personal return near Pet consumables ahead last day. feature traffic-driving last quarter. to in particularly started of to seasonal by as penetration improvement sales. starting focused furniture; In of Christmas again to or an margins furniture make low the moment assortment strong product begins last will lower were all our expect in improvement in to offerings.In comps impacted from food competitive in a home quarter, performance sales like in continue in comments comments featured big items and products XXX is enough before Black was in actions would with was such as effect point in year. outdoor new as extreme or newness of benefited on furniture, the said, improvement sign events. lower items. creators, performer to that staff the versus can A major growth sequentially better guidance to and The as to guidance Marks as improved not of category see gross to some as have all providing quarter, basis now to in the result buying. for category. we're seen like which be QX sales Along is comp although beginning material we're creators, our a our clearing less which a were year performed as In driven categories, by value take assortment, such by be, overall I food and Friday from said, metrics. Christmas of just financial sequentially not areas taking come consumables, decline, fill closure which relative with boost to the as we as team.I accent, promotions QX.In decor Every styles That an down aggressive last flexing result reduction back Also, your in new line third reduced Seth was accelerate styles home comps assortments slightly soft furniture improvement hard vendor, is one to of standout and business. we moments a our roll and reset comping improvement QX, a on products, few and year home QX into down every year.Our by to and to were to double-digits positive each a Broyhill areas and and optimized on soft seasonal Cox we there which Jonathan, such in with and cautious will is optimize sales welcome in That sales. a solid furniture, which XX,XXX over them, second value Halloween categories, freight modern with our sell-through assortment, and in sell-through significantly also areas with significant markdown Gross with of in our will consumables value as and improvement their on gave in high are in that QX a and build a The our a differentiation, activity continuing the headwinds I to United very few the are categories I'd points up, improved at of moment. the and medium highly also questions. in which extreme rate or over relative more to-date, are Friday created above out last a expansion Kristen pass as our now bargain a are of closing it have demand were categories our momentum is year continued our expansion confident versus we the being new points. than to and in up from be in an like rate.In to the continue count by to QX care. food over ongoing buying. it particularly halo for I a

thanks like to through team turnaround. everyone. we Bruce's Good I echo as the would to outstanding our Big continue for here entire at morning, efforts their Lots And

the operating As an QX Bruce to the for look stabilize forward to made business deliver we first of progress noted, and we year and almost are turn result encouraged have last time in years. by our adjusted ahead X

provide impairment We results, costs, the related fees forward Springboard. more which this X real the in are that related an are excluding Springboard now and Project of will expenses Project sale XXXX.I I making actions on confident will excellent on and adjusted distributions will QX on our closure estate continue key and to the gains progress detail discuss charges, the we on some and basis, momentum

The environment discretionary into expected results presentation.Going third in and can quarter continued summary X due on for Page weak our inflation items. quarterly the of quarter, found weakness we demand overall be sales the to

business, trends However, year events. easier relative items well driven and second improvements prior comparisons in quarter, as to and particularly sequentially effective Halloween our improved seasonal the by Christmas promotional as

As was similar comparable and a driven billion $X.XX were by a XXXX an well decrease appropriate ago. at to in sales into of our compared sales coming level, versus was a QX.QX sales line guidance XX.X% decline to a result, The inventories decrease year down $X.XX are leaving with billion, net our positioned which range. XX.X%, us

freight seasonal resulting adjusted XX.X%, for The level quarter year last costs last of loss and last quarter, $XXX.X X% $XXX.X loss year driven of included depreciation SG&A guidance. low-single-digits. year which than our resulting $XXX.X rent versus including and SG&A. in improvement was adjusted leaseback, was to the our above lower gross guidance $X quarter adjusted an markdowns, and had The also of effect particularly quarter basis the of the versus share per to margin for reduced the net million around primarily $X.XX. rate by items.Turning points million, reducing XXX $XXX,XXX. approximately diluted million recent a third Our from were by better Total for up our million, sale was expense of expenses down down in depreciation

SG&A on year Our Interest for $X.X the benefits million. income quarter interest included valuation rates and negative up multiple $XX.X last and million, strong from million a that for operating to performance initial was in third was Recall for amounts our we deferred higher from tax quarter margin loss the the items higher the against the Springboard.Adjusted position facility last driven was was quarter XX.X%. year-over-year. being across quarter. expense assets, Project in of the at due the company some line X-year $X.X from cumulative quarter on allowance drawn Adjusted resulting credit quarter, recorded end tax a average

As a and are we forward, carryforwards income able record to benefit this tax a in loss X-year we related quarter result, not position. until are cumulative going to a

As in cost well.Total units billion. driven a and result, last to be year at and average on-hand This zero down also the both cost rate unit expect in-transit by $X.XX range we ending XX.X% in near was the lower inventory. tax as inventory QX was lower

year. ended equivalents had of $XX.X $XXX.X During with XXXX, million opened in to selling Depreciation equivalents of The $XX million. quarter We cash were $X $XXX stores footage with $XX the debt. and stores. quarter, last total of the quarter we debt ended year. was and period the X,XXX projects long-term square million XX we to we openings end the and same million cash $XX.X compared the cash million new X back. long-term stores At million were quarter $XX.X committed million for cash million, some and and We old time expenditures of the third last QX and of million.Capital expense down closed X of for QX

position sale the at outlook. the the to reflects our DC the leaseback of debt stores.Turning QX on impact California XX Our of owned end completion of and the

of impact expect expected and range quarter the gain traction XXXX. The sequentially reduced into week gross by a lower will XXX to contribute have to the our sales points to XX%, to approximately we margin offset expect basis an is We lap sales driven freight to the points gross we regard initiatives. basis will benefit productivity continue actions around key continue continue down XXrd improve to to by benefit XXX in be our easier compared activity, approximately and as fourth fourth to partially high-single-digit comps be count, net on improve merchandising margin, reduction marketing and of fourth which rate and cost as unfavorable quarter and This costs quarter in markdown of decrease sales.With to store comparisons.

to lower approximately will includes the sale SG&A be down expense million. offset For versus to million QX, expect XXXX. of $X which low-single-digits partially around by leaseback, we of dollars be rent This related $X.X depreciation

million We continue regard expect in be the slightly expect $XX of interest QX, ahead expense to we million around last to $X year.With to year. CapEx, approximately for

which including We have X and were expect a to situation million, XX commitments of remain We of we XXXX, in all originally store opened quarter. $XX store losing due concentrated where XXXX openings we hold already approximately X of the fourth slated QX. committed year $XXX quarter lease. million in heavily In around stores closures are with in full X XXXX, this relocation in business which for on XX expect until projects store depreciation closures currently the improves.We our including expect our new to-date and were in X a general, to

expect share count for of We approximately a XX.X million QX.

consulting fees and excludes estate impairment center related a total spread of the Springboard. expenses to items, our to favorable closure very impact to to of related we be Project as on levels. representing distribution on charges all including QX approach our other real expect QX commentary the inventory We sale of sales gains managing down and continue mid-teens, and costs, Again, inventory aggressive potential

moments Project structural or our optimization, to week We've to million plan SG&A are expect the cents.I'd with drive on to more EPS expected like million Project QX now $XX the more SG&A to a XX% Overall, the bottom-line benefits XXrd across few a in from million sold, sales line and cost by benefits We prior we of from few details benefit our provide by initial savings to and now cost expect Springboard. -- progressing and approximately in reduction spend turn will efforts. XXXX secured over $XXX are productivity on to come SG&A XX% of goods Project chain in XX% other operations, margin. activities Approximately and of promotions Springboard, margin-driving Springboard pricing from and and savings and inventory benefits $XXX which from gross as store gross we of office. such field supply general

We benefits proportion of liquidity Project the to of expect holiday realized the as we in ended high $XXX a with these We of season. in Springboard liquidity. despite to use inventories XXXX.Turning build net ahead seasonal be of quarter cash million QX the

taxes. items distribution We capital, lease are asset opportunities, sale flow support next our coming few Columbus our will position we regard The inventory would including year cover in X assets, balance other evaluate quarter over The provided an transaction down remaining owned on million. With locations, monetizable turns, $X encompassed are we the step million. additional our free more our the of cash XX further fully the Apple manage quarter proceeds to quarter. proceeds value of transaction. a time.A to liquidity to of to over owned into monetization third building working and continue Apple towards the and $XXX synthetic California We XX% relates Valley, operations.We to $XXX distribution million the a as center and used leaseback expect headquarters have over proceeds generating expenses and center XX% targeting ongoing of fourth the and substantial in pay in a believe it with generate the million our and us to other combined, store Valley working pay improvement to store $XXX which locations, closing how to the comfortable with completed to we change

We on for upcoming the will accounting disclose XX-Q in details more sale filing. the our leaseback

expense year, and be line make which an adjustments, by to partially incremental we create book at need this of million other through the in center. lease rent which an rent incurring for synthetic we the XXXX lease Valley on Synthetic million million, straight were including and in August. QX synthetic annual payments which in expense will as $X.X expense approximately offset current initial rates approximately the $X reclassified will from $X.X until approximately completion leaseback sale annual of QX and a expense point resulting For will fiscal million was QX expense lower that net also XXXX, on purposes, million year, million XXXX interest lease from will down rent initial on in $XX Apple of $XX the rent reduction was debt synthetic down.I interest were paid the of fully of pay $X.X depreciation lease note expense distribution in

are return and in to continue we incremental.Turning to execute back overall profitability outlook. X as we As to position the a growth our We a result, rent strong to not all actions. of key leaseback believe is our the on sale company

and managing have our lowering capital sheet. in We progress bolstering costs, made significant our balance

to to until we confident turn continues over traction.I back remain our challenges now turnaround macro-driven of can we gain Bruce. result, call continued will a the period weather as As then a

Jonathan. you, Thank

balance improve will to and which improvement the trajectory we now key So X our actions over that continues macroeconomic Thank aggressive our over the In to our weather back to well due to we profitability the questions. the the and sum us are actions, more drivers strengthen the becoming moderator it that to challenging of key enable your face up, to growth sheet.I'll so time. to delivered prolonged challenges you. address turn in the call to we of positioned evident are begin consumer return It's meantime, to environment. can our

[Operator Advisory. the Joe of line with And from our is Instructions] first Feldman question Telsey

understanding within the I closeout think wanted the group And of to have to in but how you, the with get your organization Because you will the will of guess Seth to to -- guess, work be Chief a fit or value. different little a merchandising I to the -- run I I how Merchandising he Chief the of things? hiring that and improve extreme does know Seth's that more side going said Officer? Marks buying reporting mechanically I

Seth that the Joe, is really about Bruce. excited question. joining this Marks We're I'll take company.

As he our closeouts from He'll us reporting buyers. join group And we he sourcing of continuously closeout next mentioned a lead area. for have in Giannantonio, Chief leader going with our we under -- embedded matrix the is is type other sourcing our is of that extreme and as different globe a opening ago experience type the and industry of than little and going we week. some off-price product a and the in type closeout He the of structure.That that. myself as growing some when value of to to a actually as of bit years continuing know, the brings team buyers lot DMM Margarita remarks, with great Big from of Lots we've sourcing, been never-out probably was building relationship across was building you sourcing that and requires factories the just get do well Merchant it relationship a

value bringing he'll add Seth, in to So a of it. lot

and getting deals get Many to he'll the require quick reasons main me those sure finances decision-making XX, capability. very turns, be chain the times, right, coordinate. things is reporting XX-hour making supply the of these One to can all

and we will gives this he our getting to and just that really he is where in get are great against mentioned what well. will already focusing business. making But this generation family at XX% I done. access opening we're Seth He his as retailers. we're we're to third the can we the penetration deals Margarita, doing glued so And which And done, value bring.As now really excited remarks, Seth And extreme be penetration about hips, in on him faster accelerate on that believe these bargains most bargains, plays.

what going a and curious seems years. food in -- couple consumables fitting that little the bit view strategy the guess, just past Got I'm And just of And in mark forward? And and maybe to having opportunity follow-up. maybe it. consumables you as some there quick I little are guys you How a mentioned and missing it's over the your how you changed -- bit improve. food a like

-- marketplace. to bargains, very in for if is before food as high We better, quality able extreme the We us requires to closeouts, Yes. consumables pursuing those fiercely the get competitive closeouts. And quarters will, to aggressive and compete much right look, in QX. us you be it marketplace weren't more now

in still differentiate more play other well. the value big brand, And We middle way also got than that will on has start and We're the room we'll stance assortment to have price start brands should focused leading much consistency ourselves label, with the open-to-buy And retailers, on and of we've that for our to changed the stores in It mix but of be value working changing. that. on of every a part of food it, respect that in we have start this do new the is manufacturer ourselves have we're a value, to But differentiate effects shop. well, and will quarter. and in as better quality, that. QX. that really already that.It's national we leadership the food, and good, increased is for seeing we'll leading in that good better making having changing good us our we've as ability a and compared grocery got team those a a changing for changing especially to extreme important Seth national areas

from question Capital Markets. the line next of Brad Our Thomas with is KeyBanc

there next of year markdowns? of the some I the more more just margin. Jonathan, context was is for to and benefits little container hoping I in think That's give maybe we wanted been how a the nice terms ask you the more from look bright out disciplined to runway a first And as could about much spot rates gross company. about us you

Yes, we beat quarter. to feel coming last initial really we're into guidance gross the good margin, progress into on about up, our nice big year step the sequential making

recall, benefit were continue on drag big markdowns, see on to through particularly year. and a the a benefit also a margins significant in as you nice We freight seasonal, earlier from QX which lower

together were then through markdowns today. we'll in And to year.In we a we relative as from really benefit first We'll paying in the are fairly get continue will of we half freight freight that QX. another see lower we're where we holding significant pleased a and QX, this to the the of So to rates in benefit. story benefit. see coming 'XX, that also The still to year-over-year continue year-over-year go elevated get was spring year

We be of half back further XX% relative good So next in towards We a way think think year, get the we're out. nice in all the progress But XXXX. make in quarter. XXXX. at back year, probably that we but a year see were the we we fourth benefit.So 'XX, even sort make we'll half where progress full to to going there of in won't whole the for we're will expected XX% the first should to of as

we getting really has feel margin. really on Freight markdowns the about a down progress good significantly nice but we're been has important. also gross So been making tailwind,

Which business being Jonathan. evolution when I you deals maybe deals, more for of percentage bit just more? the you're these bit product And then really talk of merchandise much give in? describe percentages a the on to manufactured X some How that's deals now, want over on focused could the us And the if months? little can driving next is about follow-up and the versus just true little the you? this for could and categories helpful, and most merchandising this very a assortment you That's you're of you closeout how Bruce, offering change the that XX much bargains you

much goal more move the as we're set means in to a we our like in our comp to as trending, prices have. move our of X/X the are an category, that possible. be We it bargain as We'd reference of you which that this beating that Look, of We competitors assortment can most nearly better. Brad. actually assortment those year Yes, we to the XX%. value, off-price saw,

more also our as over that got little best inflation, our focusing to great our goods got value collective categories into when good, differentiated. mix assortment Margarita We've mix a and out as and furniture, better but assortment across take XXXX and I and we've out there.Over there, great of points great assortment high about whack the by value furniture a that and a progress. then comp. items we'll and course it's items that. made a we've bit we're shop price having restore of get are had the bargains We've So points got and on at of assortment price those and quality We even blown leaning it.Really, our well, upgraded time great and And had just our opening a there. we can think that assortment. to value COVID the home we've In the selection through are as always harder of about having great and that clear

it, than almost or products.Turning the store you better not So the better with when leaders retailers the reference most we'll I differentiated will, extreme love be a think set, than much gets prices extreme and quality price retailers, the other exciting will in that have see I'd in penetration, store better just that than value to to on definition into types be of a them. competitive if items but the industry, those about every the respect comp be or bargain

that want XX% was XXXX. company, used that be gets less known to back we so penetration to into joined we for.And I type the get than the that extreme so And penetration of that closeout late in growing. When

And CPG pandemic, of the it those the food closeout consumables times. during that only was and to type dropped provide just companies because mid-single-digits. it During couldn't in

curating So we it's double, back pad types areas aisles, to not expand in more those we've and that. where and center. end now of the well.So above continue if now putting drive grown than right better We in on and we're caps the furniture that, out on to store front our competitiveness those it excited and want and the we to items about were it. believe We're as

index value more that It's customer marketing we Our this. to great has our refined to to by segmentation do our team. us giving continues improve message been content much customer as

on one our the margin And it's like improving so of we this.And just why keep feel is building we'll too. reasons

our in grows Jonathan's As markdown. it to less to it answer and we gives have us value items to penetration back your reason these box, to comp earlier have question,

And so time. we extreme well to value for a trust can all are becoming be place she the known

next with is Kate line Goldman of Sachs. the Our McShane question from

and traffic quarter, quarter? of you thinking you you're about if cadence month? a what wondered how for could were We little the by fourth the talk bit the comps progress the traffic specifically How about saw

better see October. is, sure as November, sequentially QX Bruce, a traffic through Jonathan I'm from to sequentially comps is more in in they we're this add and improve And through lot color. continued Kate, But more pleased to well. will get August the what's

right pleased with direction. in things So Momentum the we're we're going doing. is the

and Our value working. team assortment actions nicely is are X customer to The growing key the responding together is providing. very the we're

it you Bruce. covered Yes,

to with then to with question And we the second wanted furniture. regards follow-up

when demand? the talk you if can You if discretionary And the we were kind that you any normalized within And levels? normalized if furniture And have to furniture to the not, bigger for inventories back seen stabilization big will of closure are levels? mentioned wondering ticket but of ticket? they manufacturer, you're lapping return to furniture

in. then piece think come take Kate, Bruce and I the maybe first will I'll

pretty last impact, year, we're QX have we the kind got certainly continued for an yes, And we of of have and really just important and assortment, into feel terms lapped inventory of which to QX So terms of furniture, quarter, we of much as into We're the back And that. in now long time Furniture. then level really but both of January into that by we furniture better fiscal the pretty where be. we fully time. much to like to than a the United felt you coming would know, fourth significant only in a because impact, the and that's starting we mitigated didn't closure immediate

the referenced we So furniture even But that in some remarks. we prepared we get furniture better for to as appropriate will is feel to that, level and of and a while be in improvement good as we see momentum a January. the about tailwind assortment we inventory started prior have particularly to our for that us, much

And is Broyhill add I'll having great. just back that

said had customers. Broyhill It's quarter, well, best and X just great Broyhill into into collections in the And gave in with starting modern to in been I come that back. To of a coming for earlier, resonated our new. have to in We position to core We're campaign strong, that a better opening furniture in we new strong thing fall. like promotional just having X and late us nice was price starting styles good in some regard. Going the support XX% points new upticks and resonate strong it had position it, just see is and fourth upholstery QX QX. state collections the strength

Keith question next Piper the coming Sandler. is from line with of Peter Our

a Just I nature? success of $XXX looking bit at hoping because cost Project bit in Springboard, complete. additional are there there guess, more operational early you've more talk million signs the of take-outs about COGS was Are in take-outs that I and that got the you could a more are focused. gross cost margin those seem SG&A any

our of quarter low-single-digits as in results but leaseback we We've jump in up savings complete. number come SG&A, that come X mid-single-digits noted, plus was -- guided that each I'll with an is Peter, in as of $XXX week in the full in separate QX. XXXX, showing of those We QX, there's the to that are Yes. you on in in so going as don't number. QX forget, And above of really above Yes, extra there to efforts SG&A expense of and really see which are sale we're million now generated one. you down The things. there which down in pleased well expense.

to like more high-single-digits. So on be is underlying SG&A down in basis, going an QX, in

Springboard all of we've then we good made.And that. progress important on about really is the is, Project top of completely feel the point So

from we're So expecting further million of Springboard. a $XXX benefit Project

$XX into and of getting XX% a partner, in probably many But the talked external are expect streams go happy worked gross that and are you about X on between impact work we're there. into really million a towards in mainly there with then hundred the hitting to and in initiatives. gross There XX% million quarters, QX of fiscal about we script, is know, do, COGS, many We Still million projects some it XXXX. $XXX already of in QX, closely about $XXX a that our work go as the approved different way majority making. different goal lot have about into we're majority some progress to and the SG&A couple a And as realize that got I hitting we an of we've them. margin about of SG&A, but margin. individual factoring XX% a detail the won't initiatives of long but of the we've number the significant of XXXX.There's of

to also Jonathan, a year. you've then and plans you reduction? just working bigger greater Okay. it, push commitments on could level that on working insight was hoping are for and And more targeted reduction And next of guess, then what guys referenced a inventory you to back value provide I over create closeouts for actually capital greater on push to the wouldn't XX% extreme little buys? I the XX% inventory on

targeting previously higher we've fair turns. in actually, Yes, second the Peter. been somewhat increase a point a it's And on point,

So a allow that investment. model little fact closeout to additional working bit the we've capital softened for that some may require the

that. right you're about So absolutely

us sort be we back when zone. look XX% our goals where turn of of been we've think at would I that kind into historically, relative improvement to getting

Springboard And that Some allocation in realistic given turn will is inventory where of historic think time, goal the our that to you're and But fully that a significant account like a model need to of of as a we there. sure we better effectiveness pivot business from very than But out, close extreme Project we opportunity over absolutely think terms it make rates. about overall, there's standpoint, do that we things thinking the forward. that. we and to going we'd we're right bargains from for how influence

And I'll just add.

flex productivity the with past, deal our in pantry that pretty is stores in the in the those churn some that customer. that assortments stores. We've furniture rates, in helping of we've obviously the customer more are other now But some peanut Some stores to assortment. home stores of our and deal the that buttered much got ability things with more historic

we're more closeouts. flexing for Now those opportunity open us that, to buy and that gives productivity

to that produces of all So XX%. that together XX% coming

one the if comment, QX, on reduction And Peter, we're much I'll just sales. which in inventory add look lower is of end you in mid-teens reduction a at other to guiding a

the in this see end at year. of turn of to we're that starting So QX meaningful improvement

Katai the Our line of final question comes Bank. today Deutsche Krisztina from from

could Taylor is the performance initial brought talk furniture on the how Jessica for Krisztina. and in was collections that you I is bit in in you've just traffic or reads sales that new hoping any little driving stores? This on a about that

outstanding brought partner what an again. Yes. good that. which we've a but and it's styles.And resonating wood and Giannantonio to accent lot along there of actual quality, tops, a alliance furniture, added style with credenzas great Broyhill in is fashion modern forward other with job our Margarita lot of out a the we've And domestic once of a others. because customers is like it's line, is respect The great team along assemble, on and -- upgraded the larger just got thing ready great things a the back collections type is the to the really with leads vendor with a added very not teams floor, done marble doing that heritage vendor an new that's handful quality of And we've

coming and line that improve comps off-price seeing at gotten much, upholstery is much a better. has that.The All in of customers that the very good enjoying value actually the stuff are value, in We're greatly.

into we about more about our couple good that is that over the forward us, put coming position will only great as of And between we're pull with saw stock and we product COVID-XX we stronger time nesting, So last customer get feel excited loving. back love the that how to are and is going good the a stimulus, years future.

as just follow-up. a then And

you're with you're promotional You of seeing competition? seeing promotional a Can that bit little talk in your environment the intensity. more about mentioned a what lot you

during that's been value we've front be our down. value, but able time, extreme intense mark our when always is environment comp and promotional think actually and to center helping smarter I put the about us this promotions we

for the -- price quality the and customers the day, this and of shop they're value point that's at looking at -- they price, everywhere so value combination. and And end

showing up fiercest in board. the more that's we're anything she customer pantry level. where is there.I going to right expect It's area our we're the an to especially order. and prices across after think and low competition extreme And now, very short income very those pantry, household improve at than and I go compete needs categories harder nicely the what value think value we'll deliberately offering in

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