Summary
Burlington Stores, Inc. reported a strong financial rebound in the second quarter and first half of fiscal year 2021, significantly exceeding the prior year's performance which was heavily impacted by COVID-19 store closures. Net sales surged by 119.1% and 143.6% respectively for the three and six-month periods ending July 31, 2021, compared to the same periods in 2020. This robust sales growth, coupled with strategic expense management and a recovery in consumer spending, led to a return to profitability, with net income of $102.6 million and $273.6 million for the respective periods. The company also demonstrated improved operational efficiency, with a notable reduction in selling, general, and administrative expenses as a percentage of net sales, and a recovery in gross margin. Burlington has been actively managing its debt, including refinancing its Term Loan Facility and redeeming its Secured Notes, enhancing its financial flexibility. The company continues to expand its store footprint and remains focused on driving comparable store sales growth and improving operating margins through various strategic initiatives.
Financial Highlights
47 data points| Revenue | $2.22B |
| Cost of Revenue | $1.28B |
| Gross Profit | $936.23M |
| SG&A Expenses | $702.29M |
| Operating Expenses | $2.09B |
| Net Income | $102.55M |
| EPS (Basic) | $1.54 |
| EPS (Diluted) | $1.50 |
| Shares Outstanding (Basic) | 66.64M |
| Shares Outstanding (Diluted) | 68.45M |
Key Highlights
- 1Net sales for the three months ended July 31, 2021, increased by 119.1% to $2.21 billion compared to the prior year, driven by a 19% increase in comparable store sales (vs. 2019) and the opening of new stores.
- 2Net income for the three months ended July 31, 2021, was $102.6 million, a significant turnaround from a net loss of $46.8 million in the same period last year.
- 3For the six months ended July 31, 2021, net sales increased by 143.6% to $4.40 billion, and net income was $273.6 million, compared to a net loss of $380.5 million in the prior year.
- 4Gross margin as a percentage of net sales decreased to 42.2% in Q2 2021 from 45.8% in Q2 2020, primarily due to increased freight and labor costs and lower clearance markdowns in the prior year quarter.
- 5The company repaid $300 million of Secured Notes and extended the maturity of its Term Loan Facility during the period, improving its debt structure and financial flexibility.
- 6Burlington continues to expand its store base, opening 37 net new stores in the first half of fiscal year 2021, and plans to open 75 net new stores for the full fiscal year.
- 7Cash flow from operations was strong at $426.9 million for the six months ended July 31, 2021, a significant improvement from a negative $473.0 million in the prior year period, reflecting the strong sales recovery.