Big Lots 2014 Annual Report Download - page 98
Download and view the complete annual report
Please find page 98 of the 2014 Big Lots annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
 |
 |
20
See the discussion below under the captions “2014 Compared To 2013” and “2013 Compared To 2012” for additional details
regarding the specific components of our operating results.
In 2013, our selling and administrative expenses include a $4.4 million charge associated with the settlement of a legal matter,
which was partially offset by a $3.6 million gain on the sale of a company-owned property in California.
In 2012, the cost of sales increase included a charge of $5.6 million (0.1% of net sales) due to a change in accounting principle
resulting from our successful implementation of new retail inventory management systems. This non-cash charge reduced both
income from continuing operations and net income by $3.4 million, or 10 basis points. Please see note 1 to the accompanying
consolidated financial statements for a more detailed discussion regarding this change in accounting principle.
Seasonality
As discussed in “Item 1. Business - Seasonality” of this Form 10-K, our financial results fluctuate from quarter to quarter
depending on various factors such as the timing of new or closed stores, the timing and extent of advertisements and
promotions, and the timing of holidays. We expect the Christmas holiday selling season to continue to produce a significant
portion of our sales and operating profits. If our sales performance is significantly better or worse during the Christmas holiday
selling season, we would expect a more pronounced impact on our annual financial results than if our sales performance is
significantly better or worse in a different season.
The following table sets forth the seasonality of net sales and operating profit for 2014, 2013, and 2012 by fiscal quarter:
First Second Third Fourth
Fiscal Year 2014
Net sales as a percentage of full year 24.7% 23.1% 21.4% 30.8%
Operating profit as a percentage of full year 21.0 12.4 (1.7) 68.3
Fiscal Year 2013
Net sales as a percentage of full year 24.7% 23.0% 21.6% 30.7%
Operating profit as a percentage of full year 26.7 15.9 (1.2) 58.6
Fiscal Year 2012
Net sales as a percentage of full year 24.1% 22.6% 20.8% 32.5%
Operating profit as a percentage of full year 24.1 13.7 (0.9) 63.1