Big Lots Inc at Bank of America Consumer & Retail Technology Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : So to get started, maybe for Bruce. You've made a lot of progress on your omnichannel initiatives over the past year plus. Can you talk about what you've accomplished there? And what are the areas of focus going forward?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : You've also had a lot of success so far with the rollout of Broyhill. Could you talk more about what will drive that growth going forward to hit your $1 billion sales target?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : Shifting topics a bit. Can you talk about the investments you're making in your supply chain? And you talked about on the last call about your decision to build out some new DCs and have a third-party operate them. So can you just explain a little bit about the rationale for that thinking?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's very helpful color. On your last call, you also discussed some new merchandising changes, including some category expansions and the new space planning process. So you've made some merchandising and store layout changes in the past. So I'm curious to know how these will integrate with what you've done before, how that will be different?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's really helpful commentary. I got a notification that we are getting some feedback. So if you guys are able to mute when you're not speaking, I think that might help. I can still hear you okay, but apparently there's some feedback. So to get into -- on the next question. I wanted to ask about closeouts and how you feel about your ability to source there because I know it's an area that you see a lot of opportunity in. Do you feel like you have the right team in place and the right relationships there? Or is there a need for maybe more headcount, maybe more investment or just some time for both of those relationships? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2021 / 9:30PM, BIG.N - Big Lots Inc at Bank of America Consumer & Retail Technology Conference (Virtual)

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : So you've gained a lot of new customers throughout the pandemic. Can you talk about how those retention rates have trended and what you're doing in terms of marketing and promotions to ensure that you've retain those customers?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's great. So on your last call, you talked about inventory shortages as a headwind. So -- and I know that's been pretty common among a lot of retailers these days. So I'm curious to hear about how you feel about your inventory levels currently. I know the spring selling season is upon us. And just any color on the guidance for low single digits for this upcoming quarter, if that would be higher, if not for some of these inventory shortages?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : And how are you thinking about the potential impact in this upcoming round of stimulus? And then to tag on to that, also just as the vaccination start to roll out and the country begins to reopen, I'm curious, how you think the customer spending habits might shift?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : And maybe sticking with you, Jonathan. Could you remind us of what the puts and takes are in your guidance for margins in the first quarter and then at least directionally how you're thinking about those for the remainder of the year?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : And if we look a little bit longer term, how are you thinking about your longer-term gross margin and if you could give any color on what sort of level of comps are needed to leverage SG&A?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's all really helpful color. Maybe one for Bruce. Can you talk more about your plans to accelerate store growth? Is that a function of having increased confidence that you found the right format for your stores? And any color on the availability of real estate would also be helpful.

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : Any additional color you could provide on the real estate market in terms of just what you're seeing in terms of availability? Is that -- is it getting lower rents? Or is it more a push to find better locations for these stores? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2021 / 9:30PM, BIG.N - Big Lots Inc at Bank of America Consumer & Retail Technology Conference (Virtual)

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's great to hear. So we're somewhat nearing the end of the -- of our time slot. So I just want to take a moment to queue the audience. If anyone has any questions, you can type them in, and we'll be sure to read those. I don't see any at the moment, but I have a few others, and we'll keep an eye on that. So Jonathan, you mentioned your strong balance sheet. So I feel obligated to ask. You have built up a large cash balance. Curious if you could give some commentary on how you're thinking about your potential repurchases going forward?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : And so sticking with a similar topic in terms of how you spend your cash. Curious if you could give us a breakdown. I think it was 100 -- I want to say, $180 million of CapEx. So just curious, any color on how that breaks down for the year?

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : Any color you can give on performance of lease to own? I know that this has been a big driver over many years. I think it's been launched online fairly recently. So curious to know how that rollout is going.

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : So we're coming up on time here. But maybe for the last question. We've talked about a lot of your initiatives. I'm curious if there's any 1 or 2 that you could point out that you really think is either maybe misunderstood by investors? Or will just be big growth drivers relative to the other ones.

Question: Jason Daniel Haas - BofA Securities, Research Division - Analyst : That's great. That's really good color. And we're over on time now. So I just wanted to say thank you so much for joining today. It was a really great conversation. And yes, thanks again.