Big Lots sees Q2 comparable sales down in mid- to high-single digits y-o-y

Expects gross margin rate to improve significantly vs. the prior year, and be up by at least 300 basis points, resulting in a year-over-year improvement in gross margin. Expects adjusted SG&A dollars down in the low to mid-single-digit percentage range versus 2023. Does not expect to recognize any tax benefit in Q2 as management expects to remain in a three-year cumulative loss position, which requires the company to record valuation allowances against deferred tax assets, including those related to net operating losses. The company is not providing EPS guidance but expects its Q2 adjusted operating loss to be better than last year.