Summary
Burlington Stores, Inc. reported strong top-line growth in the first quarter of fiscal year 2025, with net sales increasing by 6.1% to $2.5 billion compared to the prior year period. This growth was primarily driven by new store openings, as comparable store sales remained flat. The company demonstrated improved profitability, with net income rising to $100.8 million from $78.5 million in the same period last year. This increase was attributed to higher sales, improved merchandise margins, and better freight costs, leading to a gross margin of 43.8% and a net income margin of 4.1%. The company continues to focus on strategic initiatives to enhance profitability, including optimizing inventory, investing in merchandising capabilities, and expanding its store base with a long-term goal of 2,000 stores. Despite the positive revenue and net income trends, the company experienced a significant decrease in cash and cash equivalents due to increased capital expenditures, primarily related to supply chain investments and store openings, as well as the settlement of convertible notes. Management remains confident in its liquidity position, supported by its ABL Line of Credit, and expects to fund future operations and capital expenditures.
Financial Highlights
48 data points| Revenue | $2.50B |
| Cost of Revenue | $1.41B |
| Gross Profit | $1.10B |
| SG&A Expenses | $868.06M |
| Operating Expenses | $2.37B |
| Net Income | $100.83M |
| EPS (Basic) | $1.60 |
| EPS (Diluted) | $1.58 |
| Shares Outstanding (Basic) | 63.09M |
| Shares Outstanding (Diluted) | 64.00M |
Key Highlights
- 1Net sales increased 6.1% to $2.5 billion, driven by new store openings; comparable store sales were flat.
- 2Net income grew significantly to $100.8 million, up from $78.5 million in the prior year, reflecting improved profitability.
- 3Gross margin improved to 43.8% from 43.5%, primarily due to better merchandise margins and lower freight costs.
- 4Operating cash flow turned negative ($28.9 million) compared to positive ($49.4 million) in the prior year, largely due to working capital changes.
- 5Investing activities used significantly more cash ($412.7 million vs. $165.5 million), driven by increased capital expenditures for supply chain and store expansion.
- 6Financing activities also consumed more cash ($182.0 million vs. $66.9 million), mainly due to the settlement of the 2025 Convertible Notes and increased share repurchases.
- 7The company continues its aggressive store expansion strategy, planning for approximately 100 net new stores in fiscal year 2025, with a long-term target of 2,000 stores.