01—Abstract
Summary
Summary of the 10-Q filed May 30, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 millionb 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.
02—Key points
Key Highlights
- Net sales increased 6.1% to $2.5 billion, driven by new store openings; comparable store sales were flat.
- Net income grew significantly to $100.8 million, up from $78.5 million in the prior year, reflecting improved profitability.
- Gross margin improved to 43.8% from 43.5%, primarily due to better merchandise margins and lower freight costs.
- Operating cash flow turned negative ($28.9 million) compared to positive ($49.4 million) in the prior year, largely due to working capital changes.
- Investing activities used significantly more cash ($412.7 million vs. $165.5 million), driven by increased capital expenditures for supply chain and store expansion.
- Financing 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.
- The 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 30, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.50B$2.36B | +6.0% |
| Cost of Revenue | $1.41B$1.33B | +5.6% |
| Gross Profit | $1.10B$1.03B | +6.6% |
| SG&A Expenses | $868.06M$825.23M | +5.2% |
| Operating Expenses | $2.37B$2.25B | +5.3% |
| Net Income | $100.83M$78.51M | +28.4% |
| EPS (Basic) | $1.60$1.23 | +30.1% |
| EPS (Diluted) | $1.58$1.22 | +29.5% |
| Shares Outstanding (Basic) | 63.09M63.87M | −1.2% |
| Shares Outstanding (Diluted) | 64.00M64.27M | −0.4% |
05—Questions
Frequently Asked Questions
What drove the increase in net sales this quarter?
Net sales increased by 6.1% to $2.5 billion primarily due to the addition of 94 net new stores opened since the end of the first quarter of Fiscal 2024. Comparable store sales, however, remained flat year-over-year.
How did the company's profitability change compared to the previous year?
Profitability improved significantly, with net income increasing to $100.8 million from $78.5 million in the prior year's first quarter. This was driven by higher sales, improved merchandise margins, and lower freight costs, resulting in a higher gross margin of 43.8% and a net income margin of 4.1%.
What is the company's strategy for future growth?
Burlington Stores is pursuing a multi-faceted growth strategy. This includes driving comparable store sales through better sales trend management and leaner inventories, investing in merchandising capabilities, expanding and enhancing its store base with a goal of reaching 2,000 stores long-term (targeting approximately 100 net new stores annually), and improving operating margins through operational flexibility and supply chain optimization.
What is the company's current liquidity and cash flow situation?
The company experienced a significant decrease in cash and cash equivalents during the quarter. Operating cash flow turned negative due to working capital changes, while investing activities consumed substantially more cash due to increased capital expenditures for supply chain and store openings. Financing activities also used more cash due to debt settlement and share repurchases. Despite this, the company believes its cash generated from operations, existing cash, and its ABL Line of Credit are sufficient to meet its liquidity needs for the next twelve months and the foreseeable future.
06—Continue