01—Abstract
Summary
Summary of the 10-K filed March 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Burlington Stores, Inc. reported a strong fiscal year ended February 3, 2024, with net sales increasing by 11.8% to $9.7 billiona.
This growth was primarily driven by the opening of 80 net new stores and a 4% increase in comparable store sales. The company demonstrated improved profitability, with net income rising significantly to $339.6 millionb from $230.1 million in the prior year. Gross margin expanded to 42.5% from 40.4%, largely due to better merchandise margins and improved freight costs.
Looking ahead, Burlington Stores plans to continue its growth trajectory by opening approximately 100 net new stores annually through Fiscal 2028, aiming for a long-term store target of 2,000 locations. The company is also focused on enhancing operating margins through various initiatives including optimizing markdowns, supply chain efficiency, and cost management. Despite inflationary pressures impacting its core customer, the company is optimistic about potential benefits from moderating inflation and a slowing economy that could drive more value-conscious shoppers to its stores.
Financially, the company ended the year with $925.4 millionc in cash and cash equivalents and maintained a solid liquidity position. Burlington also continued its share repurchase program, buying back approximately $231.9 million worth of its common stock during the fiscal year. The company is well-positioned for continued expansion and profitability, leveraging its off-price model to attract value-seeking consumers.
02—Key points
Key Highlights
- Net sales grew by 11.8% to $9.7 billion for the fiscal year ended February 3, 2024.
- Net income increased significantly to $339.6 million, up from $230.1 million in the prior year.
- Comparable store sales increased by 4%, indicating healthy performance in existing locations.
- The company opened 80 net new stores, expanding its retail footprint to 1007 locations, and plans to open approximately 100 net new stores annually in the coming years.
- Gross margin improved to 42.5% from 40.4%, driven by higher merchandise margins and better freight costs.
- The company ended the fiscal year with a strong cash position of $925.4 million.
- Burlington repurchased $231.9 million of its common stock under its share repurchase program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 15, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $9.73B$8.70B | +11.8% |
| Cost of Revenue | $5.58B$5.17B | +8.0% |
| Gross Profit | $4.14B$3.53B | +17.3% |
| SG&A Expenses | $3.29B$2.88B | +14.3% |
| Operating Expenses | $9.26B$8.40B | +10.3% |
| Net Income | $339.65M$230.12M | +47.6% |
| EPS (Basic) | $5.25$3.51 | +49.6% |
| EPS (Diluted) | $5.23$3.49 | +49.9% |
| Shares Outstanding (Basic) | 64.67M65.64M | −1.5% |
| Shares Outstanding (Diluted) | 64.92M65.90M | −1.5% |
05—Questions
Frequently Asked Questions
What was Burlington's net sales performance for the fiscal year ended February 3, 2024?
Burlington Stores reported a net sales increase of 11.8%, reaching $9.7 billion for the fiscal year ended February 3, 2024. This growth was attributed to the addition of 80 net new stores and a 4% increase in comparable store sales.
How did Burlington's profitability change in the most recent fiscal year?
The company saw a significant improvement in profitability, with net income rising to $339.6 million for the fiscal year ended February 3, 2024, compared to $230.1 million in the prior year. This was supported by an increase in gross margin to 42.5%.
What are Burlington's future store expansion plans?
Burlington Stores plans to continue its expansion by opening approximately 100 net new stores per year through Fiscal 2028, with a long-term target of 2,000 stores. This strategy is supported by a disciplined real estate approach and a smaller store prototype.
How is Burlington managing its debt and liquidity?
As of February 3, 2024, Burlington had $1.4 billion in long-term debt, with no outstanding borrowings on its $900 million ABL Line of Credit. The company ended the year with $925.4 million in cash and cash equivalents, indicating a strong liquidity position. They also continue to repurchase shares, showing confidence in their financial health.
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