Burlington Stores net sales up 9.2 percent in FY16

Burlington Stores net sales for the full year increased 9.2 percent or 467.1 million dollars to 5,566 million dollars, which the company said was driven by a 4.5 percent increase in comparable store sales and 256.9 million dollars in sales from new and non-comparable stores. Fourth quarter increased 9.4 percent or 144.9 million dollars to 1,685.7 million dollars. This growth, the company said, was driven by a 4.6 percent increase in comparable store sales and 82.1 million dollars in sales from new and non-comparable stores.

Commenting on the company’s performance, Tom Kingsbury, CEO said in a statement, “We are very pleased that we ended the year on a high note, continuing our favorable momentum from the first three quarters of 2016. For the year, we delivered 9.2 percent total sales growth, a 100 basis point expansion in Adjusted EBITDA margin rate, and a 40 percent increase in Adjusted Net Income per Share.”

Financial highlights of FY16

Gross margin for the year expanded by 80 basis points to 40.8 percent driven by strong merchandise margin. Net income increased 43.5 percent to 215.9 million dollars or 3.01 dollars per diluted share.

Adjusted net income increased 33.1percent to 232.3 million dollars compared to 174.6 million dollars or 3.24 dollars per diluted share against 2.31 dollars per diluted share last year.

Adjusted EBITDA increased 20.8 percent or 100.5 million dollars to 584.6 million dollars. Sales growth, gross margin expansion and SG&A leverage led to a 100 basis point expansion in adjusted EBITDA as a percent of net sales.

Fourth quarter operating results

Gross margin for the fourth quarter expanded by 80 basis points to 41.8 percent driven primarily by improved shortage results. This more than offset a 25 basis point increase in product sourcing costs, which are included in SG&A expenses.

Net income increased 27.1 percent to 125.6 million dollars or 1.77 dollars per diluted share. Adjusted Net Income increased 15.4 percent to 126.1 million dollars or 1.78 dollars per diluted share against 1.49 dollars per diluted share last year.

Adjusted EBITDA increased 13.5 percent or 30.3 million dollars, to 254.9 million dollars. Sales growth and gross margin expansion led to a 50 basis point expansion in adjusted EBITDA as a percentage of net sales.

Net sales expected to increase 7.5 to 8.5 percent in FY17

For the full fiscal year 2017, the company expects net sales to increase in the range of 7.5 percent to 8.5 percent, including 1.4 percent from the 53rd week; comparable store sales to increase in the range of 2 percent to 3 percent, on top of the 4.5 percent increase during Fiscal 2016; adjusted net income per share in the range of 3.77 dollars to 3.87 dollars and adjusted EBITDA margin expansion to increase 40 to 50 basis points. The company plans to open 30 net new stores during the year.

For the first quarter of fiscal 2017, the company expects net sales to increase in the range of 5 percent to 6 percent; comparable store sales to increase in the range of 1 percent to 2 percent, on top of a 4.3 percent increase during the first quarter of fiscal 2016, reflecting the impact of the significant delay in processing of income tax refunds this year compared to last year; and adjusted Net Income per share in the range of 0.67 dollar to 0.70 dollar.

Picture:Facebook/Burlington Coat Factory