10-KPeriod: FY2020

Burlington Stores, Inc. Annual Report, Year Ended Feb 1, 2020

Filed March 13, 2020For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) reported strong performance for the fiscal year ended February 1, 2020. The company experienced a significant increase in net sales, driven by both new store openings and a 2.7% growth in comparable store sales. Gross margin remained stable, indicating effective cost management despite increased freight costs. Net income and Adjusted EBITDA saw substantial year-over-year increases, reflecting operational improvements and strategic initiatives aimed at enhancing profitability and expanding the store base. The company's strategic focus for Fiscal 2020 includes further store expansion, with plans to open approximately 54 net new stores, while continuing to optimize existing locations. Burlington is also investing in its merchandising capabilities, aiming for leaner inventories and improved operational flexibility to chase sales trends more effectively. Management is confident in its ability to fund operations and capital expenditures through operating cash flow and its credit facilities, underscoring a positive outlook for continued growth and shareholder value.

Financial Highlights

48 data points
Beta

Revenue

$7.26B

41.8% Gross Margin

Net Income

$465.12M

6.4% Net Margin

EPS (Diluted)

$6.91

Total Assets

$5.59B

Cash & Equivalents

$403.07M

Free Cash Flow

$563.37M

Financial Statements
Beta
Revenue$7.26B
Cost of Revenue$4.23B
Gross Profit$3.03B
SG&A Expenses$2.23B
Operating Expenses$6.71B
Net Income$465.12M
EPS (Basic)$7.05
EPS (Diluted)$6.91
Shares Outstanding (Basic)65.94M
Shares Outstanding (Diluted)67.29M

Key Highlights

  • 1Net sales increased by 9.3% to $7.26 billion in Fiscal 2019.
  • 2Comparable store sales grew by 2.7%.
  • 3Net income increased by 12.1% to $465.1 million.
  • 4Adjusted EBITDA increased by 11.6% to $883.9 million (exclusive of management transition costs).
  • 5The company opened 76 new stores and closed 8, ending Fiscal 2019 with 727 stores.
  • 6A new share repurchase program of up to $400 million was authorized in August 2019.
  • 7The company plans to open approximately 54 net new stores in Fiscal 2020.

Frequently Asked Questions

Burlington Stores reported a strong fiscal year ended February 1, 2020, with a 9.3% increase in net sales to $7.26 billion, driven by comparable store sales growth of 2.7% and contributions from new stores. Net income rose 12.1% to $465.1 million, and Adjusted EBITDA (excluding management transition costs) grew 11.6% to $883.9 million, demonstrating improved profitability.

Burlington's growth strategy focuses on expanding its store base, with plans to open about 54 net new stores in Fiscal 2020. They also aim to enhance profitability by investing in merchandising capabilities, operating with leaner inventories, improving operational flexibility, and optimizing markdowns. Additionally, the company is focused on enhancing the store experience through remodels and relocations.

Burlington does not currently anticipate paying dividends in the near term, preferring to retain earnings for capital expenditures and business initiatives. The company actively engages in share repurchases, having completed a $300 million program and authorizing an additional $400 million through August 2021, funded by operating cash flow and its credit facilities.

Burlington utilizes an opportunistic buying model to acquire in-season, fashion-focused merchandise. They are working towards leaner inventories to ensure fresher merchandise and faster turns. The company operates four distribution centers and is opening a fifth in Fiscal 2020 to support its expanding store network and efficient inventory flow.