10-KPeriod: FY2015

Burlington Stores, Inc. Annual Report, Year Ended Jan 31, 2015

Filed March 25, 2015For Securities:BURL

Summary

Burlington Stores, Inc. reported robust performance for the fiscal year ended January 31, 2015, with total revenues reaching $4.85 billion, a notable increase from the previous year. This growth was driven by a 4.9% rise in comparable store sales and contributions from new store openings. The company successfully improved its gross margin to 39.7%, reflecting effective merchandising and cost management. Despite an increase in SG&A expenses, partly due to a litigation accrual, net income saw a significant jump to $66.0 million. The company also executed significant debt refinancing activities during the year, replacing higher-interest debt with lower-interest term loans, which, while resulting in an early extinguishment loss, is expected to improve future interest expense. Burlington Stores continues to execute on its growth strategy, planning to open approximately 25 net new stores annually and focusing on enhancing its core female customer experience and optimizing its off-price model. The company ended the fiscal year with a solid liquidity position and has no plans to pay dividends in the near term, prioritizing reinvestment in business development.

Financial Highlights

27 data points
Beta

Revenue

$4.81B

39.7% Gross Margin

Net Income

$65.95M

1.4% Net Margin

EPS (Diluted)

$0.87

Cash & Equivalents

$25.35M

Free Cash Flow

$81.36M

Financial Statements
Beta
Revenue$4.81B
Cost of Revenue$2.90B
Gross Profit$1.91B
SG&A Expenses$1.52B
Operating Expenses$4.74B
Net Income$65.95M
EPS (Basic)$0.89
EPS (Diluted)$0.87
Shares Outstanding (Basic)74.10M
Shares Outstanding (Diluted)75.86M

Key Highlights

  • 1Total revenues increased by 8.7% to $4.81 billion for the fiscal year ended January 31, 2015.
  • 2Comparable store sales grew by 4.9%, indicating strong customer demand and effective merchandising.
  • 3Gross margin improved to 39.7%, up from 39.1% in the prior year, demonstrating efficient operations.
  • 4Net income rose significantly to $66.0 million, compared to $16.2 million in the prior fiscal year.
  • 5The company completed significant debt refinancing, reducing its interest expense burden.
  • 6Burlington Stores plans to continue its store expansion, targeting approximately 25 net new store openings annually.
  • 7Adjusted EBITDA increased by 16.8% to $448.1 million, highlighting operational profitability.

Frequently Asked Questions

For the fiscal year ended January 31, 2015, Burlington Stores reported total revenues of $4.85 billion, net sales of $4.81 billion, and a net income of $66.0 million. Comparable store sales increased by 4.9%, and gross margin improved to 39.7%.

Burlington Stores' growth strategy includes opening approximately 25 net new stores annually, enhancing the customer experience through improved store presentation and service, sharpening its focus on its core female customer, expanding its e-commerce presence, and optimizing its off-price sourcing and merchandising model.

Burlington Stores executed significant debt refinancing transactions in August 2014, replacing higher-interest rate debt with lower-interest rate term loans. This restructuring is expected to reduce future interest expenses, although it resulted in a loss on extinguishment of debt for the current fiscal year.

Burlington Stores currently does not anticipate paying cash dividends in the near term. The company intends to retain all available funds to reinvest in business development and debt repayment.