Summary
Burlington Stores, Inc. (BURL) reported its financial results for the quarterly period ended August 2, 2014. For the six-month period, the company saw a significant increase in net sales, growing by 7.1% to $2,171.9 million, driven by both new store openings and a comparable store sales increase of 3.6%. This top-line growth, coupled with an improvement in gross margin to 38.1% and better SG&A expense management, resulted in a swing from a net loss of $30.6 million in the prior year to a net income of $5.3 million for the current period. The company also continued its store expansion strategy, opening 3 net new stores in the quarter. While the company reported positive net income for the six-month period, the third quarter (three-month period) still resulted in a net loss of $6.5 million, though this was an improvement from a $25.0 million net loss in the prior year. This improvement was driven by strong comparable store sales growth of 4.7% and a continued focus on operational efficiencies. A significant event subsequent to the quarter was the refinancing of BURL's debt structure, including replacing its term loan facility and repaying senior notes, which is expected to provide greater financial flexibility and remove restrictive financial covenants.
Financial Highlights
48 data points| Revenue | $1.04B |
| Cost of Revenue | $645.03M |
| Gross Profit | $398.55M |
| SG&A Expenses | $350.03M |
| Operating Expenses | $1.06B |
| Interest Expense | $28.40M |
| Net Income | -$6.47M |
| EPS (Basic) | $-0.09 |
| EPS (Diluted) | $-0.09 |
| Shares Outstanding (Basic) | 73.97M |
| Shares Outstanding (Diluted) | 73.97M |
Key Highlights
- 1Net sales increased by 7.1% to $2,171.9 million for the six months ended August 2, 2014, compared to the same period in the prior year.
- 2Comparable store sales increased by 3.6% for the six-month period and 4.7% for the three-month period, indicating positive sales momentum.
- 3Gross margin improved to 38.1% for the six months, up from 37.5% in the prior year, demonstrating improved profitability on sales.
- 4The company swung to a net income of $5.3 million for the six-month period, compared to a net loss of $30.6 million in the prior year.
- 5Despite a net loss in the third quarter ($6.5 million), it represents a significant improvement from a $25.0 million net loss in the prior year's quarter.
- 6Burlington Stores opened 3 net new stores during the quarter, continuing its expansion strategy.
- 7Subsequent to the quarter, the company completed a significant debt refinancing, replacing its term loan and repaying senior notes, which is expected to enhance financial flexibility and remove covenants.