10-QPeriod: Q3 FY2016

Burlington Stores, Inc. Quarterly Report for Q3 Ended Oct 31, 2015

Filed November 24, 2015For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) reported its third-quarter and year-to-date results for fiscal 2015 in this 10-Q filing dated November 24, 2015. The company demonstrated solid performance during the nine months ended October 31, 2015, with net sales increasing by 3% to $4.4 billion compared to the prior year. This growth was driven by a comparable store sales increase of 2.1%, indicating positive customer traffic and purchasing trends. Net income for the nine-month period rose to $146.7 million, or $1.80 per diluted share, up from $124.3 million, or $1.51 per diluted share, in the same period last year. This improvement reflects effective cost management and merchandising strategies. From a balance sheet perspective, the company maintained a healthy liquidity position. As of October 31, 2015, total assets stood at $3.5 billion, with total liabilities at $2.2 billion, resulting in total equity of $1.3 billion. The company's cash flow from operations was robust, generating $407.6 million for the nine months ended October 31, 2015, which supported investments in the business and debt repayment. The filing also detailed various risk factors, including competition, changes in consumer spending, and supply chain disruptions, which are critical considerations for investors evaluating the company's future prospects.

Financial Statements
Beta
Revenue$1.23B
Cost of Revenue$741.58M
Gross Profit$489.30M
SG&A Expenses$416.20M
Operating Expenses$1.21B
Net Income$15.12M
EPS (Basic)$0.20
EPS (Diluted)$0.20
Shares Outstanding (Basic)74.11M
Shares Outstanding (Diluted)75.39M

Key Highlights

  • 1Net sales for the nine months ended October 31, 2015, increased by 3% to $4.4 billion, compared to $4.26 billion in the prior year.
  • 2Comparable store sales increased by 2.1% for the nine-month period, demonstrating continued customer demand.
  • 3Net income for the nine months rose to $146.7 million ($1.80 per diluted share) from $124.3 million ($1.51 per diluted share) in the prior year, showcasing improved profitability.
  • 4Operating cash flow for the nine months was $407.6 million, indicating strong cash generation to fund operations and investments.
  • 5The company's total debt decreased by $50 million year-over-year, reaching $890.5 million as of October 31, 2015, reflecting prudent financial management.
  • 6Burlington Stores continued its store fleet optimization, opening new stores and closing underperforming locations, indicating strategic physical expansion.

Frequently Asked Questions

While the filing covers the nine months ended October 31, 2015, it indicates that comparable store sales increased by 2.1% for that period. Specific quarterly comparable store sales data would be found in the detailed income statement notes or the MD&A section.

Profitability significantly improved. Net income for the nine months ended October 31, 2015, was $146.7 million, or $1.80 per diluted share, compared to $124.3 million, or $1.51 per diluted share, in the same period of the prior year. This represents an increase of approximately 18% in net income.

Burlington Stores maintained a solid financial position. As of October 31, 2015, the company had total assets of $3.5 billion and total liabilities of $2.2 billion, resulting in total equity of $1.3 billion. The company also generated strong operating cash flow of $407.6 million during the nine-month period, indicating good liquidity.

The filing highlights several risk factors, including intense competition in the off-price retail sector, changes in consumer demand and spending patterns, potential disruptions to the supply chain, the ability to manage inventory effectively, and general economic conditions that could impact the company's performance.