Summary
Burlington Stores, Inc. reported a slight increase in total revenue for the three months ended May 4, 2019, reaching $1.63 billion, a 7.3% increase year-over-year, primarily driven by new store openings and a modest 0.1% rise in comparable store sales. However, net income saw a decrease to $77.8 million from $82.6 million in the prior year period. This was influenced by a notable increase in selling, general and administrative expenses, which rose to 31.8% of net sales from 30.8%, partly due to the adoption of new lease accounting standards and increased product sourcing costs. Gross margin also experienced a slight dip to 41.0% from 41.2%. The company continues its strategic focus on enhancing the off-price model, sharpening focus on its core female customer, improving the in-store experience, and expanding its e-commerce presence. Burlington plans to grow its store base, targeting approximately 50 net new stores in Fiscal 2019, demonstrating a commitment to physical expansion alongside digital efforts. The company maintains a strong liquidity position, supported by its operating cash flow and revolving credit facility, and continues its share repurchase program, indicating confidence in its financial health and future prospects.
Financial Highlights
48 data points| Revenue | $1.63B |
| Cost of Revenue | $961.32M |
| Gross Profit | $667.23M |
| SG&A Expenses | $517.38M |
| Operating Expenses | $1.54B |
| Net Income | $77.77M |
| EPS (Basic) | $1.18 |
| EPS (Diluted) | $1.15 |
| Shares Outstanding (Basic) | 66.10M |
| Shares Outstanding (Diluted) | 67.73M |
Key Highlights
- 1Total revenues increased by 7.3% to $1.63 billion for the first quarter of Fiscal 2019 compared to the prior year period.
- 2Comparable store sales saw a slight increase of 0.1%, indicating stabilization after prior periods of stronger growth.
- 3Net income decreased by 6.0% to $77.8 million, primarily due to higher operating expenses.
- 4Selling, general and administrative expenses as a percentage of net sales increased significantly to 31.8% from 30.8%, impacted by lease accounting changes and increased product sourcing costs.
- 5The company adopted the new lease accounting standard (ASU 2016-02) at the beginning of Fiscal 2019, significantly impacting the balance sheet by adding approximately $2.1 billion in right-of-use assets and $2.3 billion in lease liabilities.
- 6Burlington opened 17 new stores (including 6 relocations) and closed 2 stores during the quarter, continuing its physical store expansion strategy with plans for approximately 50 net new stores in Fiscal 2019.
- 7The company repurchased $122.8 million of its common stock under its share repurchase program during the quarter, with $175.6 million remaining authorization.