Summary
Burlington Stores, Inc. reported a significant decrease in net sales and net income for the first quarter of Fiscal 2022 compared to the prior year. Net sales declined by 12.1% to $1.93 billion, and net income dropped from $171 million to $16.2 million. This performance was primarily attributed to a substantial 18% decrease in comparable store sales, influenced by the prior year's government stimulus payments and sub-optimal inventory levels early in the quarter. Additionally, gross margin contracted due to industry-wide supply chain issues that increased freight and labor costs. Despite the top-line and bottom-line pressure, Burlington continued its strategic expansion, opening 33 new stores. The company's balance sheet shows a notable increase in merchandise inventories, reflecting a strategy to hold more reserve inventory for future sales chasing and support for new store openings. While cash flow from operations turned negative, the company maintains a strong liquidity position with a significant amount available under its ABL credit facility and intends to fund its operations and capital expenditures through existing cash and this facility.
Financial Highlights
47 data points| Revenue | $1.93B |
| Cost of Revenue | $1.14B |
| Gross Profit | $792.75M |
| SG&A Expenses | $680.33M |
| Operating Expenses | $1.91B |
| Net Income | $16.17M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 66.28M |
| Shares Outstanding (Diluted) | 66.64M |
Key Highlights
- 1Net sales for the first quarter of Fiscal 2022 decreased by 12.1% to $1.93 billion compared to $2.19 billion in the prior year.
- 2Net income saw a substantial drop of 90.6%, falling to $16.2 million ($0.24 per diluted share) from $171.0 million ($2.51 per diluted share) in the same period last year.
- 3Comparable store sales decreased by 18% year-over-year, significantly impacting overall revenue.
- 4Gross margin rate declined to 41.0% from 43.3% due to increased freight and labor costs stemming from supply chain disruptions.
- 5Merchandise inventories increased significantly by 63.4% to $1.26 billion, driven by a strategy to increase reserve inventory and support new store openings.
- 6The company opened 33 new stores during the quarter, expanding its retail footprint to 866 locations.
- 7Cash flow from operations turned negative, reporting $(172.3) million compared to $223.4 million in the prior year, largely due to increased inventory levels and lower sales.