Summary
Burlington Stores, Inc.'s third quarter fiscal year 2020 report, ending October 31, 2020, reflects a challenging period dominated by the impacts of the COVID-19 pandemic. While net sales saw a decrease of 6.2% to $1.66 billion for the quarter, the company posted a net income of $8.0 million, a significant drop from $96.5 million in the prior year's quarter, but a marked improvement from the substantial net loss incurred in the first nine months of the fiscal year. The company has been actively managing its financial flexibility through debt transactions and expense controls in response to the pandemic. The nine-month period ending October 31, 2020, resulted in a net loss of $372.5 million, a sharp contrast to the $258.8 million net income in the comparable period of fiscal year 2019. This was largely attributable to temporary store closures and subsequent business disruptions. Despite these challenges, Burlington Stores has demonstrated resilience by reopening stores, carefully managing inventory and expenses, and leveraging the CARES Act for tax benefits, including a significant estimated tax refund from NOL carrybacks. The company's strategic focus remains on navigating the ongoing economic uncertainties while positioning itself for future growth.
Financial Highlights
48 data points| Revenue | $1.66B |
| Cost of Revenue | $915.85M |
| Gross Profit | $748.88M |
| SG&A Expenses | $645.28M |
| Operating Expenses | $1.64B |
| Net Income | $8.02M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 66.08M |
| Shares Outstanding (Diluted) | 66.72M |
Key Highlights
- 1Net sales for the third quarter decreased by 6.2% to $1.66 billion, reflecting ongoing impacts from the COVID-19 pandemic.
- 2The company reported a net income of $8.0 million for the third quarter, a significant decrease from $96.5 million in the prior year's quarter, but a positive result after a substantial net loss for the nine-month period.
- 3The nine-month period ended October 31, 2020, resulted in a net loss of $372.5 million, compared to a net income of $258.8 million for the same period in the prior year, primarily due to pandemic-related store closures and disruptions.
- 4Burlington Stores raised significant capital through debt issuances, including $805 million in Convertible Senior Notes and $300 million in Senior Secured Notes, to enhance financial flexibility during the pandemic.
- 5The company benefited from the CARES Act, particularly through net operating loss (NOL) carrybacks, which are expected to generate a tax refund of $202.1 million.
- 6Gross margin as a percentage of net sales improved to 45.0% in the third quarter compared to 42.4% in the prior year, driven by lower markdowns and higher markups, though offset by increased freight costs.
- 7Inventory levels decreased by 13.7% to $867.0 million at October 31, 2020, compared to the prior year, reflecting a strategic initiative to reduce in-store inventory.