01—Abstract
Summary
Summary of the 10-K filed March 15, 2016. Cited figures are marked; the original filing is the authoritative source.
Burlington Stores, Inc. (BURL) filed its annual report on Form 10-K for the fiscal year ended January 30, 2016, detailing a period of substantial growth and financial recovery.
The company reported a significant increase in total revenue to $5.13 billiona, up from $4.85 billion in the prior year, and a notable surge in net income to $150.5 million, a substantial improvement from $66.0 million in fiscal year 2015. This growth was driven by a 5.9% increase in net sales, including a 2.1% rise in comparable store sales, and an improvement in gross margin to 40.0%. The company continued its store expansion strategy, opening 28 new stores, bringing the total to 567 locations across 45 states and Puerto Rico.
Financially, Burlington Stores demonstrated improved profitability and operational efficiency. Adjusted EBITDA increased by $36 million to $484 millionb, reflecting the company's successful execution of its off-price model and cost management initiatives.
The company also actively engaged in share repurchases, demonstrating a commitment to returning capital to shareholders. Despite a competitive retail landscape and seasonal sales fluctuations, Burlington Stores presented a positive financial trajectory, supported by strategic initiatives focused on enhancing the customer experience, sharpening its focus on its core female customer, and optimizing its product offering.
02—Key points
Key Highlights
- Total revenue reached $5.13 billion for fiscal year 2015, an increase from $4.85 billion in fiscal year 2014.
- Net income saw a significant jump to $150.5 million in fiscal year 2015, compared to $66.0 million in fiscal year 2014.
- Comparable store sales increased by 2.1% in fiscal year 2015.
- Gross margin improved to 40.0% in fiscal year 2015, up from 39.7% in fiscal year 2014.
- The company opened 28 new stores in fiscal year 2015, expanding its total store count to 567.
- Adjusted EBITDA increased by $36 million to $484 million, highlighting improved operational performance.
- Burlington Stores repurchased $200.4 million of its common stock during fiscal year 2015.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2016filed March 15, 2016Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $5.10B$4.81B | +5.9% |
| Cost of Revenue | $3.06B$2.90B | +5.5% |
| Gross Profit | $2.04B$1.91B | +6.6% |
| SG&A Expenses | $1.60B$1.52B | +5.0% |
| Operating Expenses | $4.89B$4.74B | +3.1% |
| Net Income | $150.48M$65.95M | +128.2% |
| EPS (Basic) | $2.03$0.89 | +128.1% |
| EPS (Diluted) | $1.99$0.87 | +128.7% |
| Shares Outstanding (Basic) | 74.11M74.10M | 0.0% |
| Shares Outstanding (Diluted) | 75.44M75.86M | −0.6% |
05—Questions
Frequently Asked Questions
What was Burlington Stores' financial performance like in fiscal year 2015?
Burlington Stores reported robust financial performance in fiscal year 2015. Total revenue increased to $5.13 billion, and net income saw a substantial rise to $150.5 million. This growth was underpinned by a 2.1% increase in comparable store sales and an improved gross margin of 40.0%.
What are Burlington Stores' key growth strategies?
Burlington Stores' growth strategies include expanding its retail store base by approximately 25 net new stores annually, enhancing its off-price model through product freshness and inventory management, sharpening its focus on its core female customer, improving the overall customer experience, and increasing its e-commerce sales. The company also aims to enhance operating margins through markdown optimization and increased purchasing power.
How is Burlington Stores managing its debt?
As of January 30, 2016, Burlington Stores had $1.30 billion in long-term debt, primarily consisting of a senior secured term loan facility and an ABL senior secured revolving facility. The company made a $50 million prepayment on its Term Loan Facility in May 2015 and has actively managed its debt through refinancing and principal payments to reduce interest expenses.
What is the company's approach to shareholder returns?
Burlington Stores has an active share repurchase program, authorizing the repurchase of up to $200 million of its common stock in November 2015, following the full utilization of a prior $200 million authorization. The company currently does not anticipate paying cash dividends in the near term, intending to retain earnings for capital expenditures and business initiatives.
06—Continue