10-KPeriod: FY2017

Burlington Stores, Inc. Annual Report, Year Ended Jan 28, 2017

Filed March 16, 2017For Securities:BURL

Summary

Burlington Stores, Inc.'s 2017 10-K filing provides a comprehensive overview of its business operations, financial performance, and strategic outlook as of March 16, 2017. The company operates as a national retailer of branded apparel, footwear, accessories, and home product, emphasizing a "treasure-hunt" shopping experience. Investors should note the company's focus on off-price retail, its expansion strategy, and the competitive landscape it operates within. The filing details the company's performance during the fiscal year, highlighting its store base, merchandising strategy, and supply chain. Management's Discussion and Analysis (MD&A) is crucial for understanding the drivers of revenue, gross margin, and operating income. Attention should be paid to risks such as competition, inventory management, and macroeconomic factors that could impact future results. The report also outlines the company's financial condition, including liquidity, capital resources, and its approach to managing market risks.

Financial Statements
Beta
Revenue$5.57B
Cost of Revenue$3.30B
Gross Profit$2.27B
SG&A Expenses$1.72B
Operating Expenses$5.26B
Net Income$215.87M
EPS (Basic)$3.06
EPS (Diluted)$3.01
Shares Outstanding (Basic)70.48M
Shares Outstanding (Diluted)71.72M

Key Highlights

  • 1Burlington Stores operates as a national off-price retailer offering branded apparel, footwear, accessories, and home products, focusing on a "treasure hunt" shopping experience.
  • 2The company's strategy centers on offering compelling value to customers, which drives traffic and sales, and relies on strong vendor relationships for a continuous flow of desirable merchandise.
  • 3Burlington operates a significant store base across the United States, with ongoing efforts to open new locations and optimize store performance.
  • 4The filing details the company's financial results, including revenues, cost of goods sold, and operating expenses, as well as its balance sheet and cash flow statement.
  • 5Key risks identified include intense competition from other retailers (both off-price and traditional), the ability to maintain adequate inventory levels, and sensitivity to economic conditions and consumer spending.
  • 6The company emphasizes its supply chain and inventory management capabilities as critical to its off-price model.
  • 7Management's Discussion and Analysis provides insights into the factors affecting financial condition and results of operations, including trends, uncertainties, and critical accounting estimates.

Frequently Asked Questions

Burlington Stores operates as an off-price retailer, offering branded apparel, footwear, accessories, and home products at significant discounts compared to traditional retail prices. Their strategy focuses on creating a "treasure-hunt" shopping experience for customers, driven by a continuous flow of exciting and desirable merchandise sourced from a wide network of vendors.

Key risks highlighted include intense competition from both off-price and traditional retailers, the company's ability to manage its inventory effectively and secure sufficient quantities of desirable merchandise, potential impacts from changes in consumer spending and economic conditions, and operational risks related to its supply chain and store performance.

The filing indicates that Burlington focuses on maintaining sufficient liquidity, managing its capital expenditures for store growth and improvements, and optimizing its operational efficiency. The Management's Discussion and Analysis section provides detailed insights into their financial performance, including revenue generation, cost controls, and strategic investments, along with explanations of their accounting policies and estimates.

Burlington is pursuing a strategy of opening new store locations across the United States. The company aims to identify and capitalize on opportunities to expand its physical footprint in attractive markets, while also focusing on improving the performance and profitability of its existing stores.