10-QPeriod: Q3 FY2025

Burlington Stores, Inc. Quarterly Report for Q3 Ended Nov 2, 2024

Filed November 26, 2024For Securities:BURL

Summary

Burlington Stores, Inc. reported strong financial results for the nine months ended November 2, 2024, with net sales increasing by 11.5% to $7.34 billion and net income nearly tripling to $242.9 million compared to the same period last year. This growth was driven by both new store openings (139 net new stores, bringing the total to 1,103) and a 2% increase in comparable store sales. The company demonstrated improved profitability, with gross margin expanding to 43.4% from 42.4% year-over-year, attributed to lower markdowns, higher initial markups, and decreased freight costs. Operating expenses also saw improved leverage, with selling, general, and administrative expenses as a percentage of net sales decreasing. This robust performance highlights Burlington's effective execution of its strategies, including store expansion, inventory management, and operational efficiencies. From a financial health perspective, Burlington maintained a strong liquidity position with $857.8 million in cash and cash equivalents at the end of the period. The company also refinanced its Term Loan Facility, extending the maturity date and reducing interest margins, alongside active share repurchase programs. Despite macroeconomic uncertainties, Burlington's performance indicates resilience and a positive outlook.

Financial Highlights

48 data points
Beta

Revenue

$2.53B

44.0% Gross Margin

Net Income

$90.60M

3.6% Net Margin

EPS (Diluted)

$1.40

Total Assets

$8.44B

Cash & Equivalents

$857.80M

Free Cash Flow

-$56.22M

Financial Statements
Beta
Revenue$2.53B
Cost of Revenue$1.42B
Gross Profit$1.11B
SG&A Expenses$893.09M
Operating Expenses$2.41B
Net Income$90.60M
EPS (Basic)$1.43
EPS (Diluted)$1.40
Shares Outstanding (Basic)63.56M
Shares Outstanding (Diluted)64.62M

Key Highlights

  • 1Net sales for the nine months ended November 2, 2024, increased 11.5% to $7.34 billion.
  • 2Net income for the nine months ended November 2, 2024, grew significantly to $242.9 million, up from $112.2 million in the prior year.
  • 3Comparable store sales increased by 2% for the nine-month period and 1% for the third quarter.
  • 4Gross margin improved to 43.4% for the nine-month period, up from 42.4% year-over-year, driven by better markdowns and freight costs.
  • 5The company opened 139 new stores (including 30 relocations) during the nine-month period, expanding its store count to 1,103.
  • 6Cash and cash equivalents stood at $857.8 million as of November 2, 2024, indicating a solid liquidity position.
  • 7Burlington refinanced its Senior Secured Term Loan Facility, extending maturity to September 2031 and reducing interest margins.

Frequently Asked Questions

For the nine months ended November 2, 2024, Burlington reported net sales of $7.34 billion, a 11.5% increase year-over-year. Net income more than doubled to $242.9 million, up from $112.2 million in the prior year. Comparable store sales grew by 2%, and the gross margin expanded to 43.4%.

Burlington continues to execute its growth strategy through store expansion. During the nine months ended November 2, 2024, the company opened 139 new stores (including 30 relocations), bringing its total store count to 1,103. The company plans to open an average of approximately 100 net new stores per year through Fiscal 2028.

Burlington maintained a strong liquidity position, with cash and cash equivalents of $857.8 million as of November 2, 2024. The company also recently refinanced its Term Loan Facility, extending its maturity to September 2031 and reducing interest rate margins. As of November 2, 2024, total debt, net of current maturities, was approximately $1.54 billion.

The report mentions general economic conditions, including inflation and its impact on consumer discretionary spending, as a key uncertainty. Other challenges include intense competition within the retail sector, seasonality of sales, weather conditions, and potential disruptions to the supply chain. The company actively monitors these factors and has implemented strategies to mitigate potential impacts.