Big Lots 2015 Annual Report Download - page 3

DEAR SHAREHOLDERS:
was another very good year for our
Company...our strategy is working.
tĞ͛ǀĞĞƐƚĂďůŝƐŚĞĚĂĨŽƵŶĚĂƟŽŶƚŚƌŽƵŐŚƚŚĞ^WW
;^ƚƌĂƚĞŐŝĐWůĂŶŶŝŶŐWƌŽĐĞƐƐͿ͕ďƵŝůƚĂǁŽƌůĚͲĐůĂƐƐůĞĂĚĞƌƐŚŝƉ
ƚĞĂŵ͕ĂŶĚƉŽƐŝƟŽŶĞĚƚŚĞŽŵƉĂŶLJĨŽƌƐƵĐĐĞƐƐĨŽƌŵĂŶLJ
LJĞĂƌƐƚŽĐŽŵĞ͘KƵƌƚĞĂŵĐŽŶƟŶƵĞƐƚŽŵĂŬĞŵĞĂŶŝŶŐĨƵů
ĂŶĚůĂƐƟŶŐŝŵƉƌŽǀĞŵĞŶƚƐƚŽŽƵƌďƵƐŝŶĞƐƐƉƌŽĐĞƐƐĞƐ͕
ĂŶĚŽƵƌĐŽƌƉŽƌĂƚĞĐƵůƚƵƌĞŚĂƐŶĞǀĞƌďĞĞŶƐƚƌŽŶŐĞƌ͘/Ŷ
ƐŚŽƌƚ͕ǁĞĐŽŶƟŶƵĞƚŽĚŽǁŚĂƚǁĞƐĂŝĚǁĞǁĞƌĞŐŽŝŶŐ
ƚŽĚŽ͘ŶĚǁŚŝůĞ/͛ŵƚŚĞĮƌƐƚƚŽƐĂLJǁĞĂƌĞƐƟůů͞ĂƚƚŚĞ
ďĞŐŝŶŶŝŶŐŽĨƚŚĞďĞŐŝŶŶŝŶŐ͕͟ŝƚŝƐŝŵƉŽƌƚĂŶƚĨŽƌŵĞƚŽƚĂŬĞ
ĂŵŽŵĞŶƚƚŽƚŚĂŶŬĂůůŽĨŽƵƌĂƐƐŽĐŝĂƚĞƐŝŶŽƵƌƐƚŽƌĞƐ͕
ĚŝƐƚƌŝďƵƟŽŶĐĞŶƚĞƌƐ͕ĂŶĚŚĞĂĚƋƵĂƌƚĞƌƐŝŶŽůƵŵďƵƐ͘tĞ
ĂƌĞ͞KŶĞdĞĂŵǁŝƚŚKŶĞ'ŽĂů͕͟ĂŶĚϮϬϭϱŝƐĂŶŽƚŚĞƌŐƌĞĂƚ
example of how we are winning together.
dŚĞdžĞĐƵƟǀĞ>ĞĂĚĞƌƐŚŝƉdĞĂŵŚĂƐďĞĞŶĂĐƟǀĞůLJǁŽƌŬŝŶŐ
ŽŶƚŚĞŶĞdžƚƉŚĂƐĞŽĨŽƵƌ^WW͘^ƚƌĂƚĞŐLJŝƐƚŽƉĚŽǁŶ͕ĂŶĚ
ŽƵƌĐŽŶǀĞƌƐĂƟŽŶƐʹĂŶĚŝĚĞĂƟŽŶʹŚĂǀĞĐĞŶƚĞƌĞĚŽŶ͞ŚŽǁ
/'ƐƚĂLJƐƌĞůĞǀĂŶƚ͟ŝŶƚŽĚĂLJ͛ƐŚŝŐŚůLJĐŽŵƉĞƟƟǀĞ͕ĞǀĞƌͲ
ĐŚĂŶŐŝŶŐƌĞƚĂŝůĞŶǀŝƌŽŶŵĞŶƚ͘EŽƚƐƵƌƉƌŝƐŝŶŐůLJ͕ƚŚĞthree
pillarsŽĨƚŚĞ^WWĂƌĞŶŽƚĐŚĂŶŐŝŶŐ͘͘͘ǁĞƌĞŵĂŝŶĨŽĐƵƐĞĚ
ŽŶ:ĞŶŶŝĨĞƌ͕ŽƵƌƐƐŽĐŝĂƚĞƐ͕ĂŶĚŽƵƌ^ŚĂƌĞŚŽůĚĞƌƐ͘
KƵƌ<ĞLJWĞƌĨŽƌŵĂŶĐĞ/ŶĚŝĐĂƚŽƌƐĂƌĞĂůƐŽƵŶĐŚĂŶŐĞĚ͖
ŚŽǁĞǀĞƌ͕ǁĞ͛ǀĞĞdžƉĂŶĚĞĚŽƵƌƐƚƌƵĐƚƵƌĞǁŝƚŚŶĞǁƚĞĂŵƐ͕
ŝŶĐƌĞĂƐĞĚŽƵƌůĞǀĞůƐŽĨĐƌŽƐƐͲĨƵŶĐƟŽŶĂůŝŶǀŽůǀĞŵĞŶƚ͕ĂŶĚ
leveraged the learnings from the last two years to make
ƚŚĞƚĞĂŵƐĞǀĞŶŵŽƌĞĞīĞĐƟǀĞ͘
ඹJennifer Pillar
dŚĞ:ĞŶŶŝĨĞƌƉŝůůĂƌƌĞƉƌĞƐĞŶƚƐƚŚĞƐĂůĞƐƉŽƌƟŽŶŽĨ
ƚŚĞƐƚƌĂƚĞŐLJĂŶĚŝŶĐůƵĚĞƐDĞƌĐŚĂŶĚŝƐŝŶŐ͕DĂƌŬĞƟŶŐ͕
ĂŶĚ^ƚŽƌĞdžĞĐƵƟŽŶ͘KǀĞƌƚŚĞůĂƐƚƚǁŽLJĞĂƌƐ͕ǁĞ
ŚĂǀĞŝŵƉƌŽǀĞĚƚŚĞƋƵĂůŝƚLJĂŶĚĐŽŶƐŝƐƚĞŶĐLJŽĨŽƵƌ
ŵĞƌĐŚĂŶĚŝƐŝŶŐ͕ĞǀŽůǀĞĚŽƵƌŵĂƌŬĞƟŶŐŵĞƐƐĂŐĞƚŽ
ƚŚĞĚŝŐŝƚĂůĂŐĞ͕ĂŶĚƌĂŝƐĞĚƚŚĞďĂƌŽŶƐƚŽƌĞĞdžĞĐƵƟŽŶ
ƐƚĂŶĚĂƌĚƐ͘͘͘ĂŶĚ:ĞŶŶŝĨĞƌŚĂƐŶŽƟĐĞĚ͕ĂƐĞǀŝĚĞŶĐĞĚ
ďLJŚĞƌĨĞĞĚďĂĐŬĂŶĚƚŚĞĐŽŶƐŝƐƚĞŶĐLJŽĨŽƵƌƐĂůĞƐ
ƉĞƌĨŽƌŵĂŶĐĞ͘ϮϬϭϱŵĂƌŬĞĚŽƵƌƐĞĐŽŶĚĐŽŶƐĞĐƵƟǀĞ
LJĞĂƌǁŝƚŚĨŽƵƌƋƵĂƌƚĞƌƐŽĨƉŽƐŝƟǀĞĐŽŵƉƐʹĂĨĞĂƚ
/'ŚĂƐŶ͛ƚĂĐĐŽŵƉůŝƐŚĞĚŝŶŶĞĂƌůLJĂĚĞĐĂĚĞ͘ĂĐŚŽĨ
the strategies of the Jennifer pillar played an important
ƌŽůĞŝŶŽƵƌƐƵĐĐĞƐƐŽĨĞŶŚĂŶĐŝŶŐ:ĞŶŶŝĨĞƌ͛ƐŽǀĞƌĂůů
ƐŚŽƉƉŝŶŐĞdžƉĞƌŝĞŶĐĞ͘
Merchandising: KƵƌŵĞƌĐŚĂŶĚŝƐŝŶŐŽƌŐĂŶŝnjĂƟŽŶŚĂƐ
ĨƵůůLJŝŶƚĞŐƌĂƚĞĚƚŚĞĚŝƐĐŝƉůŝŶĞƐŽĨ͞ĚŝƚƚŽŵƉůŝĨLJ͟
ĂŶĚY&s;YƵĂůŝƚLJ͕ƌĂŶĚ͕&ĂƐŚŝŽŶ͕ĂŶĚsĂůƵĞͿ͕ǁŝƚŚ
ƉĂƌƟĐƵůĂƌĨŽĐƵƐŽŶŽƵƌKtE>ĂŶĚt/EE>
ŵĞƌĐŚĂŶĚŝƐĞĐĂƚĞŐŽƌŝĞƐʹƌĞĮŶŝŶŐĐĂƚĞŐŽƌLJĚĞƐŝŐŶĂƟŽŶƐ
and looking to the future and how we will need to go
ƚŽŵĂƌŬĞƚ͕ĐŚĂŶŐĞ͕ĂŶĚƐƚĂLJƌĞůĞǀĂŶƚ͘dŚĞKtE>
ĐĂƚĞŐŽƌŝĞƐŽĨ&ƵƌŶŝƚƵƌĞ͕>ĂǁŶΘ'ĂƌĚĞŶʹWĂƟŽ&ƵƌŶŝƚƵƌĞ
ĂŶĚ'ĂnjĞďŽƐ͕ĂŶĚŚƌŝƐƚŵĂƐdƌŝŵĂƌĞĚĞƐƟŶĂƟŽŶƐ
ĨŽƌ:ĞŶŶŝĨĞƌǁŝƚŚ/'ŚĂǀŝŶŐŵĞĂŶŝŶŐĨƵůĐŽŵƉĞƟƟǀĞ
ĂĚǀĂŶƚĂŐĞƐĂŶĚƐŝŐŶŝĮĐĂŶƚĨƵƚƵƌĞƐĂůĞƐŐƌŽǁƚŚƉŽƚĞŶƟĂů͘
dŚĞt/EE>ĐĂƚĞŐŽƌŝĞƐŽĨ,ŽŵĞ͕,ŽƵƐĞǁĂƌĞƐ͕
ƉƉůŝĂŶĐĞƐ͕&ŽŽĚ͕ĂŶĚŽŶƐƵŵĂďůĞƐĂůůŽǁƵƐƚŽďĞ
ƌĞůĞǀĂŶƚǁŝƚŚĂŶĞŶŚĂŶĐĞĚƋƵĂůŝƚLJĂŶĚǀĂůƵĞŵĞƐƐĂŐĞ͘
tĞǁŝůůĐŽŶƟŶƵĞƚŽĐĂƌĞĨƵůůLJƌĞǀŝĞǁŽƵƌƌĞŵĂŝŶŝŶŐ
ďƵƐŝŶĞƐƐĞƐ ʹǁŚŝĐŚǁĞƌĞĨĞƌƚŽĂƐŽŶǀĞŶŝĞŶĐĞ
ĐĂƚĞŐŽƌŝĞƐʹĨŽƌŽƉƉŽƌƚƵŶŝƟĞƐƚŽĂĚĚƚŽ:ĞŶŶŝĨĞƌ͛ƐďĂƐŬĞƚ
ĂŶĚŵĂŬĞŚĞƌǀŝƐŝƚƚŽŝŐ>ŽƚƐĂŵŽƌĞƉƌŽĚƵĐƟǀĞƚƌŝƉ͘
DĂƌŬĞƟŶŐ͗ dŚĞŶĞdžƚŬĞLJĞůĞŵĞŶƚŽĨƚŚĞ:ĞŶŶŝĨĞƌƉŝůůĂƌŝƐ
DĂƌŬĞƟŶŐ͘ϮϬϭϱǁĂƐĂŶŽƚŚĞƌŵĞĂŶŝŶŐĨƵůƐƚĞƉĨŽƌǁĂƌĚ
ĂƐǁĞŝŶƚƌŽĚƵĐĞĚƚŚĞĂĚĐĂŵƉĂŝŐŶShop Big Lots First
ĂŶĚƌĞĞŶĞƌŐŝnjĞĚŽƵƌĨŽĐƵƐŽŶŽƵƌƵnjnjůƵďZĞǁĂƌĚƐ®
ƉƌŽŐƌĂŵƚŚƌŽƵŐŚŝŶĐƌĞĂƐĞĚŶĞǁŵĞŵďĞƌƐŝŐŶͲƵƉƐ
ŝŶĞdžĐĞƐƐŽĨϮϬйŝŶŽƵƌƐƚŽƌĞƐĂŶĚŽŶůŝŶĞ͘tĞĂůƐŽ
ĐŽŶƟŶƵĞĚƚŽŵŽǀĞĂŐŐƌĞƐƐŝǀĞůLJŝŶƚŽŶĞǁĐŽŵŵƵŶŝĐĂƟŽŶ
ĐŚĂŶŶĞůƐŝŶĐůƵĚŝŶŐĞͲĐŝƌĐƵůĂƌƐ͕ƉĂŝĚƐĞĂƌĐŚ͕ĚŝƐƉůĂLJ͕
ĂŶĚƐŽĐŝĂůŵĞĚŝĂ͘KƵƌ&ĂĐĞŬ®
ĨŽůůŽǁĞƌƐŶŽǁĞdžĐĞĞĚ
ϯŵŝůůŝŽŶʹǁŚŝĐŚŝƐƚƌƵůLJƌĞŵĂƌŬĂďůĞĐŽŶƐŝĚĞƌŝŶŐǁŚĞƌĞ
we were just two short years ago. We also broadened our
ƉƌĞƐĞŶĐĞŝŶƐĞǀĞƌĂůŽƚŚĞƌƐŽĐŝĂůĐŽŵŵƵŶŝƟĞƐ͕ŝŶĐůƵĚŝŶŐ
dǁŝƩĞƌ®
͕ WŝŶƚĞƌĞƐƚ® ͕ ĂŶĚ/ŶƐƚĂŐƌĂŵ® .
David J. Campisi
ŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ
ĂŶĚWƌĞƐŝĚĞŶƚ
ϮϬϭϱŵĂƌŬĞĚŽƵƌƐĞĐŽŶĚĐŽŶƐĞĐƵƟǀĞ
LJĞĂƌǁŝƚŚĨŽƵƌƋƵĂƌƚĞƌƐŽĨƉŽƐŝƟǀĞ
comps–a feat BIG hasn't accomplished
in nearly a decade."
"
BIG LOTS, INC. 2015 ANNUAL REPORT