10-KPeriod: FY2022

Burlington Stores, Inc. Annual Report, Year Ended Jan 29, 2022

Filed March 16, 2022For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) reported strong recovery in Fiscal Year 2021, a period marked by a significant rebound from the challenges of COVID-19 experienced in Fiscal Year 2020. Net sales increased by 61.8% to $9.3 billion, and the company returned to profitability with a net income of $408.8 million, a substantial improvement from the prior year's net loss of $216.5 million. This performance was driven by the reopening of stores, increased comparable store sales, and a disciplined approach to managing expenses and inventory. The company's strategic initiatives for Fiscal Year 2022 focus on driving comparable store sales growth through trend chasing and leaner inventories, expanding its retail footprint with a long-term target of 2,000 stores, and enhancing operating margins through improved flexibility and expense management. Burlington also continues to invest in its merchandising capabilities and store experience. Despite ongoing macroeconomic uncertainties and supply chain pressures, the company demonstrated resilience and a clear strategy for continued growth and profitability.

Financial Statements
Beta
Revenue$9.32B
Cost of Revenue$5.44B
Gross Profit$3.89B
SG&A Expenses$2.87B
Operating Expenses$8.78B
Net Income$408.84M
EPS (Basic)$6.14
EPS (Diluted)$6.00
Shares Outstanding (Basic)66.59M
Shares Outstanding (Diluted)68.13M

Key Highlights

  • 1Burlington Stores reported a significant financial recovery in Fiscal Year 2021, with net sales increasing by 61.8% to $9.3 billion and net income returning to $408.8 million, a sharp turnaround from a net loss in the previous year.
  • 2The company successfully expanded its store base, ending Fiscal Year 2021 with 840 stores, and has a long-term target to reach 2,000 stores, indicating a strong commitment to growth.
  • 3Fiscal Year 2021 saw a substantial improvement in gross margin to 41.6% from 38.2% in Fiscal Year 2020, primarily due to the reversal of inventory markdown reserves from the prior year and increased sales volume.
  • 4Burlington is actively managing its debt, having redeemed its Senior Secured Notes and partially repurchased its Convertible Notes during Fiscal Year 2021, while also extending the maturity of its Term Loan Facility.
  • 5The company repurchased $250 million of its common stock during Fiscal Year 2021 and subsequently authorized an additional $500 million share repurchase program, signaling confidence in its financial position and commitment to returning value to shareholders.
  • 6Strategic initiatives for the upcoming fiscal year include focusing on comparable store sales growth, optimizing inventory levels, investing in merchandising capabilities, and enhancing the store experience.

Frequently Asked Questions

In Fiscal Year 2021, Burlington Stores achieved a strong recovery, with net sales growing 61.8% to $9.3 billion and net income reaching $408.8 million, a significant improvement from the net loss of $216.5 million in Fiscal Year 2020, which was heavily impacted by the COVID-19 pandemic.

Burlington Stores continues to expand its retail footprint, having reached 840 stores by the end of Fiscal Year 2021. The company has increased its long-term store target to 2,000 stores, driven by a smaller store prototype and opportunities presented by retail disruption, indicating a significant growth runway.

Burlington has been actively managing its debt. In Fiscal Year 2021, the company redeemed its $300 million Senior Secured Notes and repurchased a portion of its Convertible Notes. Additionally, it extended the maturity of its Term Loan Facility and maintained a healthy liquidity position with $594.6 million available under its ABL Line of Credit at the end of Fiscal Year 2021.

Burlington's strategy focuses on driving comparable store sales growth through a 'chase the trend' model with leaner inventories, enhancing its merchandising capabilities, and improving the customer store experience. The company also aims to improve operating margins by increasing operational flexibility and challenging expenses.