Big Lots (BIGGQ) 7 Mar 242024 Q4 Earnings call transcript

Good morning, everyone, and thank you for joining us. I'm pleased to report another quarter of sequential improvement in comps and gross margin rate while continuing to take out costs.

For the third quarter in a row, we did what we said we would do. And despite a challenging macroeconomic environment and well-documented weather challenges in January, we finished the year in a much better place than where we started. That said, there's a lot of work to do in 2024, and we are moving aggressively to accelerate our transformation, return to positive comparable sales and continue to improve our gross margin rate over the course of the year.

fourth and the to on quarter outlook. results Now on key drove actions we improved made underlie X progress significant which Overall, that the our results. operating our strategy,

actions progress We that margin in a on will gross pave the much are improved the continued X confident XXXX. for way key

X bargains, productivity. omnichannel relevance, messages a customers to key As own for these There efforts, value, convey unmistakable life actions X communicate reminder, our and win drive to to are to with to morning. want are to increase I store this

to progress adjusted marking X First, adjusted years. our key on quarter first profit actions operating QX, enabled in us in X deliver growth profit of operating the

the on metrics. than sequentially We better sales the also November and guidance key December our challenges delivered with month. quarter, in despite the January and Comp within weather improved versus QX

higher the week year-over-year adjusted combination a the after had cost in ongoing newness assortment, extra by significant SG&A We quarter. efforts, our a below of more improvement bargains, reductions, penetration taking last and level markdowns. well with also margin particularly in effective normalized of results promotions These freight year, more productivity in more rate, were along and reduction driven of account the into gross

opportunities key most improvements bottom-line plus expect These This includes progresses. improvements see margin we which positive Second, $XXX next will through of phase. quarterly XXXX continue as year-over-year by the million enter will momentum the year and will Springboard. X to and comparable our in continue actions, gross realizing to of a their driven sales path Project gain to be

extreme value hunt and traction of extreme stores bargains, comparable our sources leaning that, of expanded been talent amassed penetration right to our have extreme customers customer our expect To also unmistakable treasure resourcing extreme value sales the a experience, of value starting our our discount accelerate customers, By with bargain assortment assortment bargains and These on And America's which will We're as in within help flow our a providing our XX% have coming to position steady our our growth. bargains. further create deal efforts. keep grow exciting store. Home the significantly back bargains sales. we more offers an have business heritage We we to extreme extreme grow and pipeline. new already to to infrastructure gain needed of solidify build in of will to our through drive

costs, us by well manage capital monetized assets and over as liquidity have of over took as out almost year, reduced the million million by challenging year-over-year, through XX% cut nearly owned CapEx period. aggressively $XXX to inventory and inventory efforts worth $XXX We expenditures $XXX our during monetize million. enabled Third, assets to SG&A maintain a

net liquidity reduce the generated the we of significant fourth to free ABL at us in $XXX the and flow quarter, Our enabling end million, fourth quarter cash balance. our was

continue As of managing options a evaluate as financing into XXXX, normal our part we we look prudently to business. additional

believe we progress like momentum which some prosperity actions, to back circle taking challenging, remain now the business. that. to will the forward and to highlight our may conditions look drive the near-term I'd returning key made we continue do to While and health of to right recent X in on actions company the are we've to

sourcing over procuring a partners a we and action which in year. We advantage and to mix factory the items, and first new by vendors achieved our this relates goal through where far products we was from of our exceeding overseas. nearly significant retailers end other QX, of inventoried of direct are the key by believe buys bargains, X/X distressed have domestically over and and our owning XX% price comparable sourced products, closeout sales As opportunistic it bargains, of

phase next our of expanded extreme assortment have within sales. early bargains, And strong and of on as of already an XX% as extreme food offering journey laundry care, had sell-through but as that, bargains bedding, grow in we've and our offerings, to some Our more well our such to in on hair cereal is bargains. We're coffee cookware.

We on across extreme more hard categories. are pushing bargains sourcing our

a closeout, we consumables in large our example, For January. have recently late stores hit branded which procured

which well, newness buys excitement more We at and furniture exceptional have furnishings manufacturers and from made home several will branded as prices. add

sourcing more to working value us procurement concert in while the extreme fresh team, new our value of is intermediaries. extreme team minimizing Our deals directly source integrating allowing channels, with entire use merchandising

In through a recently more million intermediary. use full the a $XX inventory purchased fact, HearthSong foreclosure at of than an valued we without of sale toys

the process XX% execution the will extreme and to XX% sourcing For we'll carry HearthSong's accelerating value of instrumental which retail. toys, bargain than stores cross-organizational collection less prices our for high-quality first extreme been at This acquisition offer has in ranging from scale. time, original

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channels. price called efforts About, across creative and pantry perception, accelerate exciting reclaim Your in drive a value traffic penetration caps our Day to net values XX% event, a our end offers, in family As score perception our of a Your Brag emphasis our and we designed nearly QX. heritage in bargains for and and our the year-over-year improve and Deal Friday, value on to emphasizes is successful our which in through our our to customer campaigns improved Black bargains To and as friends furniture February such bargain launched drive comparable aisle campaign best items every new increased and result Bargains of Fridays decor

leveraging where the spend, XXXX. we are we target eliminate last to promotions year return, continue promotional see and processes and nonproductive us we this into We our expect accelerate to progress will tools promotional new implemented and to help greatest

to action, increasing third we to relevance. relates on key it As our store continue focus

efforts our capture Our are customer encouraging assortment to to showing demand flex ongoing results.

as categories. and It As creating productive inventory optimizing a stores, reminder, also been and we've pet flexing assortment our space in taking as categories by categories space opportunities bottom as our top-performing with performing out to depth our and less consumables. SKUs, more in breadth food and well increasing focused of and more they're stores particularly such all more assortment newness our in means on white and trend inventory in products We've great and bargains, been have product introducing right these assortment, value out shop will so frequently get more while act our there. quickly more to in across customers

were as total our SKUs year-over-year This helping, products of a QX. share drive New is improvement had furniture bargain newness in up as in business. great helped a

customers XX% of for is customers and ways great keeping caps it being XX% drive more flexibility joined forward, lawn in showcase products talent as merchandising, We're expanded consistency and new. our value improving opportunities are attracting easy for to fresh decorative in base and focused make items. browse Officer, the our is make to to top to Improvement store of in promotions productivity, Kristen with look frequency the execution for to evolve key our experience many store and such order also Christmas and our of bath we've and already retain in for and new to identified assortment room through and establishing end feel buy garden the storage locked to online, team vignettes to those increasing with more We've and inspire products. we've better accessories, deals store in of the items we building shop As want store our aisles and who relevance, inspired our Stores furniture creating full in and customers. better the our still critical better Cox, been in and to December, and look research customers the and X stores, showcase visual they actions. on our continue there Chief leadership store testing Through

to been customers experience with customer improving help life us it to fourth relates for win we've our key action, our As omnichannel efforts.

them, Our attracting goal to by us. retaining growing is and the for shopping with them life customers win

differentiates Our platform it omnichannel is a enabler this, us of and peers. from off-price crucial our

In constantly feedback e-commerce looking are particular, we to areas finding customer the and sales on of the improvement. improving of focused productivity are channel. improving ways We profitability address and at

endless for of our we a orders and Eats able positively. place experience. everyday will app to online We season. easily. extended We customers and will our with home QX, seasonal allowing in-store get seamless to more continue them our the coming more our to be reach quarters, of shopping be Uber customers customers, were armed during our tools furniture excited the more to products store for platform suite attention first quickly holiday launch our mobile associates partners to products to and our help In their influence special through to our addition new our aisle more with of to In marketplace the enhance journey products browse big-ticket

is in actions us with New engage younger X These efficiency. CapEx capabilities helping traffic new key important action through and are the and reductions, to cost drive The structural productivity inventory drivers and fifth customers future. brand. partnerships our be will turns

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

are So improve again to key the have actions enabled results in our up, and to quarter. fourth sum gaining momentum it X us sequentially

material to by to margin extreme specific progress A growth return items by year gross relative aided in in a assortment, aided And on basis, I'll combined make continued every promotional versus sales versus last key boost year. XXXX features. activity [indiscernible] bargain as efforts to these solid our rate by seasonal QX overall a last actions in sequentially flex our a on few improve comments quarter progresses, Christmas on We sell-through our rate. excited and are to comp now margin gave to driven significantly gross sales and with improved major of reduction a year-over-year to

in low about comps, sequentially and lapping relative our abrupt sign to Upholstery year-over-year was headwinds with to Our along what categories on relative In significant is performed sales, and saw basis. positive newness, a basis deceleration comeback decor value a the areas double-digit such a largest home the better items furniture accents Improvement bargain soft our which closure and we for sales supplier, QX Hard improved and in assortment as in soft halo gaps QX offerings well in-stocks in X a QX inventory Home and impact created to driven us last growth Broyhill assortments comp home had on modest previously beginning on our with Furniture, as a provided furniture good and styles. significant improvement year. category. in QX year-over-year which well furniture by that effect in modern from a few of as offerings. due new

since comps and XXXX improving we our brought food modestly Hard We in basis. progresses. make category the have sequentially to off-price new category experience lead sales in with to this Home relative inventory. department more Therefore, competitive on the year-over-year as comp in bargains by to bringing in expect consumables, a a and improve improved us In for QX more

forward. drive penetration on more in should We the of particularly bargains, are extreme going which accelerating food the significant improvements focused category,

the For the aided our fall. Pet with assortment was by standout in growth, positive again expansion quarter, the of a performer comp

in year handing hard our our vendors challenges. working thank I'd for like all improve their to to Jonathan, despite our thank I'd also customer to to like the take and control once will XXXX. the Before to again as the will rates moment this I accelerate we now incredible team associates to for taking your such the over right on journey satisfaction for a few that Sea. and seeing bring to chain in we and for some business the There business I place be be turnaround focus to and election without potential supply our a XXXX its summit we fluctuations have customers, products won't an in That disruptions comments we uncertainties exciting moments before great in at in pass look year to questions. it said, to continue our over return what in Red confident manage and July. will challenges. vendor on partnership with our Jonathan, appropriately. own closing forward make to I'm will can bargains more them interest

their efforts entire in the progress. significant I underlying at Big Lots Good was thank XXXX, which again would year we to challenges throughout once morning, a team everyone. like for here made which despite

we noted, deliver as For quarter, said the fourth would. we what were we once to again pleased Bruce

that momentum project progress We excellent continue X are are will in the and the on Springboard XXXX. key confident we making actions this forward

on distribution excluding gains costs, in XXXX. A related income quarter found fees project expenses, X Page quarterly of gross estate margin on benefit through of center on some with year. year sale quarterly continue QX expect closure to quarter recorded charges, I to real allowance to to significant results now will fourth tax rate our progresses in detail last improvements our a valuation basis, positive I discuss related the We the summary every impairment earlier which an will and as on presentation. be more versus an the Springboard related and comps the results, year-over-year path adjusted provide year improvement can and

with due January sales posted by more a part December, in by sales approximately of to in Home quarter, of as businesses. million impact X.X% weather sales the to the comparisons in Home billion, improvements in were United adverse of store was points a expected, we improvement had November by which net comparable driven a This and growth. in our fourth of spite XXrd unfavorable approximately year an affected year sales improved $X.XX $X.XX January XXX by of We Soft guidance our relative shortages challenges As sequentially and our quarter X.X%, January. sales and and compared points. week which from Furniture, and the sequential ago, offset furniture well driven comp benefited impact of primarily in our The closure comp QX prior product as furniture range to as third billion the last QX in basis in due the momentum the reduction a a to our impact favorable in which $XX trends year. line to basis was count, lap contributed approximately business decrease relative Soft to net sales XXX decrease in comparisons easier

loss and with reduced to freight $X.X in items seasonal versus particularly Our guidance, year and basis million, with quarter fourth net driven in adjusted by improvement X level a last line lower last costs. points the markdowns, primarily was year our of

line also depreciation had down for recent approximately depreciation the expenses X.X% including week. million for adjusted to last million high Turning million. our low of our which guidance Total included around quarter, these reducing impacts, additional expenses was digits. SG&A. with included for the versus by from $X underlying $XXX.X XXrd digits. leaseback, SG&A also were $XXX.X down the in SG&A year, million, single effect expense of down sale rent single $X of Adjusting SG&A resulting

quarter tax benefit expirations of the in the deferred project the million, multiple expense position assets Our in the the quarter. our being facility reserves for loss amounts the The income quarter strong Springboard. last million. of rates quarter, allowance end fourth Recall was benefits limitation. fourth a Interest was the quarter from line due was we company $X.X tax due X-year initial credit tax cumulative was in quarter statutes Adjusted the to up year resulting valuation performance slightly that result a of average against and the second higher for the of Adjusted recorded in a across from of expenses benefit and drawn of $XX.X was on release at primarily driven year-over-year. margin items quarter for the operating interest positive. from to higher and $X.X tax million included

and not to cost inventory. benefit we able are Total our income related forward, versus in-transit lower by down and going a loss tax are until driven result, a inventory carryforwards record on-hand to guidance year we X-year a mid-teens and million XX% was cumulative in As position. ending $XXX.X units lower down last

footage in had $XX.X opened The for and we and were million some we back. full all third the projects On the year, of down in million $XX.X the year. $XXX similar fourth had $XXX.X $XX XX billion, a a debt, We impact of quarter. X with in QX on At CapEx due During XX.X% closed equivalents, million selling Depreciation cash ended down of the $XX third million. stores was quarter, time XXXX, with square basis quarter reduction resulting a we quarter. to to basis compared million negative from was cash new the year of of to XXX the by to of end which $XX.X fourth total quarter of growth committed stores was XXX net basis, $XX.X X,XXX a comparable driven the million openings and million We ended by million from the year. the our offset last almost $XX $XX from quarter, guidance of with approximately the long-term fourth XXrd million, quarter to sales million closures. $X.X last points points down week, expense versus for basis XX% and year last store full stores. we

loss last of basis Our XXX was adjusted loss adjusted loss operating operating full X.X% Adjusted points compared a of million. $XXX.X to $XXX year to XXXX of year. operating million down

QX. noted, as operating achieved we adjusted Although profit an year-over-year in and improvement

to outlook. the Turning

in reduction markdown and QX freight to lower rate point year-over-year and productivity XXX points, and as initiatives. and We margin, the With ahead cost expect as the into well to traction our regard basis we the range more driven XXX quarter comparisons. sales lap costs be we improvement continue continue margin mid-single-digit to comp improvement sequentially sequential up negative activity, improve gross to X actions key our favorable reduced between quarter first in expect by to to year-over-year first gross XXX-basis gain of

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

We to IT in line with expect be expect CapEx, QX. interest or openings. below be in regard offsetting million $XX store XXXX expense we With XXXX to lower investments approximately necessary somewhere to with

will lease. expect these the are and in business Three due where commitments originally store third our new improves. a were a openings hold store projects for XXXX slated we to be which is one of all losing to XXXX, on continue all remain until our of quarter. situation of We store X relocation In general, in

We of in QX. $XX including expect full year depreciation million, million $XXX around approximately

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

unit the expect approach delivered savings estimate. we gross QX our initial Springboard plan of aggressive related the reduction SG&A details QX well from in improvement including be cost fees consulting Springboard, XXXX decline above will target. by across We inventory more we down on impairment potential the real Springboard. to impact progressing in charges a to total and a above coming productivity turn and the savings, all on in over to costs. to levels. delivered excludes driven $XXX and teens, About initial as back distributions in low alignment commentary our to and very moments XXXX, average on benefits now provide are project managing our sale Overall, million costs, Again, spend inventory like of project margin on representing SG&A and be $XX I'd of few efforts. half million items, other Project we In of and our expenses half related lower estate closure the continue gains of including inventory of and favorable

be around will in We that benefits of and million goal and on $XXX are million of to benefit least of targeting take further at us our cumulative overall XXXX $XXX XXXX in benefits. incremental hopefully an

reminder, XX% project from other expect come Springboard margin-driving from a initiatives in approximately As SG&A. total, reduction, of and benefits XX% to COGS from we XX% gross approximately approximately

liquidity. $XXX of liquidity QX. to Turning the similar quarter with We net million ended to

bolster evaluate environment. a as we liquidity challenging continue we actions to mentioned, further navigate what our Bruce through to As remains

the for to ability up them using million owned or the of have certain through We remaining of as through case $XXX collateral outright additional assets. monetize either sales financing in to assets,

to position continue a course over Turning we significantly growth company the and of improve the X year overall We the our return as outlook. our in to are we comp back profitability key execute believe strong to on actions. to sales

make than the over managing in our We costs, to expect again, capital where in our better continue finishing the and lowering turn to place I progress will a Bruce. around once back much turning now year we started. call to business,

through now, clear. the If Jonathan. you, Thank is we all the noise one right market thing in cut

on challenging Our of to to return and our call continue us focus again moderator turn balance the key we environment. to X and which that to us and be will enable The so I'll continue address key the improvement allow back now Thank a the drivers we continues consumer sheet you. will our we to weather macroeconomic actions, despite to over then, until strengthening once the questions. challenges. improve, have delivered been begin current growth profitability. to momentum your will to And to can

My apologies.

now will question-and-answer the Thomas our today conducting Instructions] Markets. session. [Operator be question first of from with Capital And line the KeyBanc comes Brad We

deal But was kick as sales. questions I wanted of the remarks. optimistic this prepared on that we bit about in about outlook a the more for here, big I the off helping touched think drive you your you're hoping ahead quarters a improvements the Bruce, about the you could little results. just to talk in on to a couple most on with categories

relevance, quarterly our own are driven X our store expect customers points communicate bargains, life through and which driving improvements for by We to to value, winning to unmistakable continue, forward, year-over-year productivity. our omnichannel, again increase

right, down we've We right is there now product the job XX% It's lawn a well. a that category. now to that right good going garden in We've first it's newness is season priced done the are bringing got in always trade believe opportunity. foremost nice think seasonal. the I done and new. and we're bargain. great of It's

having which sets and Living patio there XXXX. also into lawn Real the with in back Broyhill key think are one seeing of and garden great aspect Broyhill and going furniture our priced is value. key a sectional best our sofa I stock we're $X,XXX of at is a I think our interesting of of about are for items that selling growth right items returned and in one of new of that's top us. a is that our XX% exciting selling Broyhill Broyhill the really that's right to for and furniture purchase. actually second getting what's now, line, And growth is out our XX% customers Actually, now, file them back

the excited in we So little about of into then area from consumables, was also Home and and of to areas, she's perform the new essentials, Home, extreme coming bringing continues tough All about the starting extreme to is in leader And halo excited I'm this the everyday excited our those Soft we're is I'm about better Soft product in customers in. have that. new a terms that penetration we're off-price Home bargains, We've in the Home. food bit QX. already area. Hard that exactly which a nice what bargains bargains from the getting It products as comes in and world. QX furniture got build. in need Hard new environment. depressed and get a effect economic bargains

we'll and is customers and our to grow more go through QX, frequently. X X, that give going visit as which to X we more us penetration, So reason

doing. merchants, meeting growing. is day. our the value team extreme merchandising bargain excited the every growing about with work They're the about I'm excited extreme I'm team So

bargains. of bargains Extreme growing pipeline day. Our is every

for QX to In already has of fact, we'll our that retail original $XXX that over million bringing customers. be pipeline value

So The very our well. to are with showed way we it I'm excited team About, in the what is results Brag exciting. that And about Bargains the communicating store. test has

I it think just going going to the that to get campaign customers. is that's build to out

are roughly look Brad, And XXXX. this down business we've I that prior units AURs where to ended calls because referenced furniture would you relative in XX% to if we down the at XXXX. XXXX, actually the our just are just more add, up and it's

don't picks coming we around, driven furniture exactly to that think down, a going for back over up, all think that's so So that's a as opportunity. turn big people tailwind do rates on. when but We know more interest become business time going we to do major us by moving and that's

we have XXXX, [indiscernible] in even didn't And

and that That's to to helpful. XXXX? I then that, how of -- you've the ticket to are in specifically talked tickets? starting it traffic And and and Jonathan, you this. you some come maybe evolve as and all a very categories you seeing drivers And been hoping just as follow-up in expect that, influence seeing was on what we about as as to relates some Alita, up deflation touched

by strongly Brad. so continued enumerated, XXXX other including driven trends Yes, Bruce during We pretty comps that traffic our and expect along going be the initiatives extreme just bargains overall vocal evolution correlated. in comp about comps marketing primary the trend do was that's were our we of driver through traffic the the the improvement value. and all to comp takeable anticipate XXXX, with our trends and overall sequential traffic most that

XXXX. So continuing foresee traffic through to yes, we improve do

deflation hard selling within know from anything to it may what you're the I perspective? happening because Okay. exactly what's from that happening you inflation hard a like-for-like. be seeing Great. now? right you're are mix notable And out But is tell there what changing

flexibility to mix AUR getting hard happening AUR. always down Yes. significantly, there's What a gives AUCs us a on think impacts, in more we're is little our I overall Brad, importantly business which make which our read. lot is of

board year-over-year significantly through run in projects, to starting expect AUCs continue that in the to leverage and, we fact, benefits and quarter, see accelerate the we're first the those So we negative bring year benefits. as

and the important a there's pure us more interpret point AUR. But around in more create there that bargains But AUR. having mix change to any down in we're around that close So think latitude us year-over-year gives is noise lot of to AUCs how a some effects basis. again also I in year-over-year extreme on getting

with extreme points core to the able add price bargains and that we price points maintain it and on opening home categories sell-through. the also in were getting good opening bargains, and restore are augmenting I'd Furniture, the those,

Our coming will Telsey Instructions] with line of next the Joe be [Operator Group. from Feldman question Advisory

more about year? entering year you It some that. it talk like the as like cadence And say, in more a should slope like what we maybe Like comp. you we should I this that could kind fourth puts positive Is think even about year little of a Can of that share you're Is talk would seems back getting year? and the and or flat, quarter? look of to you the when about bit the related to the described. bit to positive, little better takes earlier

expect and take that I'll improvement Yes, first we're some by want in are the through we we're early X said benefit expect as being the just change but on not to get counting year. referenced, comps around helping. during eventually, all quickly the year. project in our when the XXXX. significant macro, we're may Joe. bargains United can. some the to help driver, calling And the including shooting We've comments. continued The remarks, what we not that in points we then macro expect a to will And sequential initiatives we we Yes, in from see year-over-year all then of us And turn other obviously year, then improvements on add driven prepared some Bruce backdrop but as line. to there part we're Bruce are, top that the the we positive the as that be, a extreme helps getting the Furniture again, Springboard, get things pass got the in

back our think in going we XXXX. below about exceeded we are through price for XX%. to core significantly sourcing bargains, grow I'd there XX% just About to with XX% the extreme back to assortment. that a the the bargain of which grows over there, add helps when we We pantry launched 'XX, came that's of in product. worked that the year hard you which add be as able to that of this subset Brag word we're set to goal being into that bargains out leaders in a And we've own. that going think the now out to off-price year with get that priced And to That's to furniture campaign, and the owning business, it. so us trips the got and We've that we're to business Bargains

going to was time. I right to build that's over get first. content important The So think

messaging Now is the marketing, the key.

So that will build.

I And that And were to everyday And XX% on less you more that's XX% is guess okay. front, more always prices. than XX%. you that I my on everyday I ask. or is actually, guys of less of the like bargains understanding question a thought then the little Bruce, to of if Can I products. -- XX% guess items always the most extreme your wanted kind or on XX% XX% to other was part is less define

help defining us you previously maybe bargains how to can So you're rethink was happening. versus what

question, It's a good Joe.

where leaders. once XX% is close of that a category you depends and in to Whereas be source I on significantly a as it the low get priced category, below way or and Doritos really by from a you're think retailers. a tighter bag at can we one going of that food a that. differentiations is leaders, to sees bargain. bargain. this up the be the best if way get It's it price factory some leaders. a is to bargain some could XX% what on And in comps. bargain priced talking below And out be the or and you're extreme Every could about extreme furniture, and direct An day priced consumables or it the cases, XX% typical to over be be price In significantly XX%. competing going most vary overseas again, XX%. cases, price at customer those look And can

In key it. leadership us. make profit the But value it the the customer that's is right of So and them because look if good bargain. good to off is really at we you the best comes through business, for to there way it's understand a team, prior guidelines this to what them drive out, to possible, lot past, bargain get many she to customer's and that you little obviously, will, and stock of extreme -- the sees bargain it bit took too, and as close the out that if bargains the want I a a both you're we in can extreme of the having out move to never rules of the everyday Big the get and essentials are business -- as eyes using, a as took use we as of the but the ensure from but out competition assortment. Lots measure And productivity recall, accretive to

we're get was bargain bargain we in the now strive of that closeout box, or to the Back or that even penetration so XXXX, right and back. XX% the under And extreme in direction. moving

can that's it way you. explain best I So for the

helpful. quarter. very luck first Good that's this No, with

comes from with line [Operator of Stringer the Instructions] Scott question Wolfe next Research. Our

I I the sales of if a know more between difference they're product and talked just consumables about there's side. the question quick rest bargain you've on focused gross product margin on any the sales. had extreme

just but gross to So should How to that? profit of potential we all maybe that's just higher mix It's dollars. margins, headwind a think there. accretive about

Yes. we gross across expect consumables, to bargains particularly be generally basis. expect margin case a and be to Yes, but accretive the on food extreme That's we categories, the that case. overall, in rate

does will using That become which metric teleconference available. a of particularly assumptions. the to is to category bar today's by conclude bigger as obviously, for mix. replay which they in of got we're a year, the then take we this [Operator inventory be plans, we've become a which key part those closeouts improving sales have we're evaluate webcast. turn when have and ROI, in that margin call A around GM Instructions] bringing And metrics, We closeouts,

dialing XX toll-free the XXXXXXXX, by sign. XXXXXXXX pound enter can sign. by You XXX-XXXX. number confirmation by the toll pound (XXX) (XXX) replay is replay is XXX-XXXX the access The confirmation and March number followed until -- replay followed

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