Burlington Stores Inc. Q1 2024 Financial Report

Executive Summary

Burlington Stores Inc. (NYSE: BURL) reported strong financial performance for the first quarter of the fiscal year 2024. Highlights of the quarter included a notable increase in both total sales and comparable store sales, driven by effective pricing strategies, strong merchandise management, and the addition of new stores.

Financial Performance Overview

Total sales for the first quarter were $2.36 billion, representing an 11% increase over the same period in 2023. This robust sales growth was supported by the addition of 14 net new stores, increasing Burlington's total store count to 1,021. Comparable store sales (comp sales) grew by 2%, hitting the high end of the company's guidance range.

Gross profit for the quarter was $948.9 million, reflecting a gross profit margin of 40.2%. The company achieved an EBITDA of $205.6 million, leading to an operating income of $123.6 million and an operating margin of 5.2%.

Burlington posted a net income of $78.5 million, culminating in earnings per share (EPS) of $1.21 ($1.22 diluted). Despite higher operational expenses, efficient supply chain management and strong regular price selling contributed to an adjusted EBIT margin expansion of 170 basis points year-on-year. This performance was significantly ahead of the company's guidance expectations.

Operational Highlights

CEO Michael O’Sullivan highlighted key drivers behind the quarter's performance, such as strong merchandise management and supply chain initiatives, which led to faster inventory turns and lower markdowns. Regular price selling demonstrated particular strength with a March-April combined comp sales increase of 4%, showcasing customer responsiveness to Burlington’s offerings.

Ongoing efforts to improve supply chain efficiency enabled better-than-expected progress, contributing significantly to margin improvements. CFO Kristin Wolfe elaborated on the financial measures, emphasizing continued focus on supply chain productivity and effective expense management.

Guidance and Outlook

Looking ahead, Burlington maintains a cautiously optimistic outlook for the rest of 2024. The company projects Q2 comparable store sales growth in the range of flat to 2%, with the potential to exceed this target based on recent trends. For the full fiscal year, Burlington expects to open 100 net new stores, adding to the sales momentum.

For the full year 2024, Burlington is maintaining its comp sales outlook of flat to 2% and increasing its full year earnings guidance. The updated guidance includes a projected adjusted EBIT margin increase of 40 to 60 basis points and an adjusted EPS range of $7.35 to $7.75.

Conclusion

Reflecting on the first quarter of 2024, Burlington Stores Inc. is well-positioned to capitalize on its strong start, with strategic focus areas including merchandise assortment optimization, supply chain improvements, and market share gains through selective pricing strategies. The management remains confident in the company’s ability to drive long-term growth and value creation for its stakeholders.