Summary
Burlington Stores, Inc. reported a significant decline in net sales and net income for the three and six months ended July 30, 2022, compared to the same periods in the prior year. Net sales for the quarter fell by 10.3% to $1.98 billion, and for the six months by 11.2% to $3.91 billion. This downturn is attributed to a 17% decrease in comparable store sales, driven by economic pressures on their core customer base and increased promotional activity across the retail landscape. The company also experienced a decrease in gross margin rate due to higher markdowns, increased inventory shortage, and elevated freight costs. Despite the revenue challenges, Burlington is strategically expanding its store footprint, opening 46 new stores in the first six months of the fiscal year, with plans to open 90 net new stores for the full year, aiming for a long-term goal of 2,000 stores. The company has also been actively managing its debt, with no outstanding borrowings on its ABL Line of Credit and continuing to pay down its term loan and convertible notes. While facing headwinds, the company remains focused on operational efficiency and expanding its market presence.
Financial Highlights
47 data points| Revenue | $1.99B |
| Cost of Revenue | $1.21B |
| Gross Profit | $776.67M |
| SG&A Expenses | $685.50M |
| Operating Expenses | $1.97B |
| Net Income | $11.97M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 65.80M |
| Shares Outstanding (Diluted) | 65.96M |
Key Highlights
- 1Net sales decreased by 10.3% to $1.98 billion for the three months ended July 30, 2022, compared to the prior year period.
- 2Comparable store sales decreased by 17% for both the three and six-month periods ended July 30, 2022, indicating a challenging retail environment.
- 3Gross margin rate declined to 38.9% for the quarter and 39.9% for the six months, impacted by increased markdowns, inventory shortage, and higher freight costs.
- 4Despite sales declines, the company opened 46 net new stores in the first six months of fiscal 2022 and plans to open 90 net new stores for the full year, underscoring its expansion strategy.
- 5Inventory levels increased significantly, up to $1.27 billion from $828.2 million in the prior year, partly due to increased reserve inventory and new store openings.
- 6The company utilized $636.1 million of cash during the first six months of fiscal 2022, a significant increase from the $36.0 million used in the prior year, primarily due to changes in working capital and lower operating cash flow.
- 7Burlington continues to manage its debt, with no borrowings on its ABL Line of Credit as of July 30, 2022, and a substantial remaining authorization for share repurchases ($449.9 million).