Summary
Burlington Stores, Inc. (BURL) reported strong performance for the second quarter and first half of fiscal year 2019, ending August 3, 2019. Total revenues increased year-over-year driven by both comparable store sales growth and contributions from new stores. Net income saw a significant increase, reflecting improved operational efficiency and sales momentum. The company also highlighted its strategic initiatives focused on enhancing the off-price model, sharpening its focus on the core female customer, and improving the overall customer experience. These efforts are contributing to positive comparable store sales growth and demonstrating the company's ability to drive value for shareholders.
Financial Highlights
48 data pointsBeta
Financial Statements
Beta
| Revenue | $1.66B |
| Cost of Revenue | $970.42M |
| Gross Profit | $685.94M |
| SG&A Expenses | $531.84M |
| Operating Expenses | $1.57B |
| Net Income | $84.57M |
| EPS (Basic) | $1.28 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 65.92M |
| Shares Outstanding (Diluted) | 67.27M |
Key Highlights
- 1Total revenues for the three months ended August 3, 2019, increased by 10.5% to $1.66 billion compared to the prior year.
- 2Net sales for the six months ended August 3, 2019, grew by 8.9% to $3.28 billion.
- 3Comparable store sales increased by 3.8% for the second quarter and 1.9% for the first half of the fiscal year.
- 4Net income for the quarter rose to $84.6 million from $71.0 million in the prior year's quarter.
- 5The company opened 27 new stores (including 7 relocations) and closed 4 stores during the first six months of the fiscal year, expanding its total store count to 691.
- 6Operating cash flow significantly improved, increasing to $229.4 million for the six months ended August 3, 2019, from $166.3 million in the prior year period.
- 7Burlington announced an additional $400 million share repurchase authorization, signaling confidence and commitment to returning value to shareholders.
Frequently Asked Questions
Revenue growth was driven by a combination of an increase in net sales from new and non-comparable stores, as well as an increase in comparable store sales. This indicates both store expansion and improved performance in existing locations.
The adoption of ASU 2016-02 resulted in the recognition of approximately $2.2 billion in right-of-use assets and $2.3 billion in lease liabilities on the balance sheet. It also led to a change in expense recognition, reclassifying favorable lease costs from 'Depreciation and amortization' to 'Selling, general and administrative expenses' for the current period, which impacted expense ratios but not overall liquidity.
Burlington plans to continue expanding its retail store base, with a goal to reach approximately 1,000 stores long-term. For Fiscal 2019, the company planned to open about 50 net new stores, including gross new openings, relocations, and closings.
Burlington is actively repurchasing its stock, with an additional $400 million authorization announced. The company does not currently anticipate paying cash dividends in the near term, preferring to reinvest earnings into capital expenditures, business initiatives, and opportunistic capital structure actions.