Burlington Stores lifts outlook on upbeat Q1 results

Net sales at Burlington Stores, for the first quarter ended April 30, 2016 increased 8.4 percent, or 99.6 million dollars to 1,282.7 million dollars. This increase includes the 4.3 percent increase in comparable store sales, as well as an increase of 52.6 million dollars from new and non-comparable stores.

“We are very pleased to report first quarter results that exceeded our top and bottom line guidance. Our performance was highlighted by an 8.4 percent increase in net sales, a 4.3 percent increase in comparable store sales and an 80 basis point expansion in adjusted EBITDA margin driven by the ongoing traction and successful execution of our off-price operating model,” stated Tom Kingsbury, Chief Executive Officer of the company.

Detailed review of the upbeat first quarter

Gross margin improved approximately 35 basis points to 40.1 percent during the quarter. Net income increased 46 percent to 37.5 million dollars, or 0.52 dollars per diluted share. Adjusted net income increased 32.5 percent to 41.6 million dollars or 0.57 dollar per share against 0.41 dollar per share last year.

Adjusted EBITDA increased 19.3 percent or 19.5 million dollars to 121 million. Sales growth, SG&A leverage and gross margin expansion led to an 80 basis point expansion in Adjusted EBITDA as a percentage of net sales.

Raises full year and second quarter outlook

The company is raising its full year outlook based on its very strong first quarter results. For the full year, the company expects net sales to increase in the range of 7.1 percent to 7.6 percent; comparable store sales to increase between 3 percent to 3.5 percent and adjusted net income per share in the range of 2.68 dollars to 2.78 dollars, compared to prior guidance of 2.62 dollars to 2.72 dollars; adjusted EBITDA margin expansion to increase 30 to 40 basis points. The company aims to open 25 net new stores.

For the second quarter, the company expects net sales to increase in the range of 6.3 percent to 7.3 percent; comparable store sales to increase in the range of 2.5 percent to 3.5 percent and adjusted net income per share in the range of 0.20 dollar to 0.23 dollar.

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