Burlington Stores reports net loss of 334 million dollars

Burlington Stores, Inc., for the first quarter ended May 2, 2020 reported total sales decrease of 51 percent to 798 million dollars. The company’s gross margin rate was 2 percent vs. last year’s rate of 41 percent, driven primarily by a 272 million dollars inventory charge against aged inventory due to extended store closures. Net loss was 334 million dollars or loss of 5.09 dollars per share vs. net income of 78 million dollars or 1.15 dollars per share for the first quarter last year, and adjusted net income represented a loss of 312 million dollars or loss of 4.76 dollars per share vs. 85 million dollars or 1.26 dollars per share last year. The company said in a statement that adjusted EBITDA decreased 613 million dollars from last year’s first quarter to 445 million dollars and adjusted EBIT decreased 617 million dollars below the prior year period to 499 million dollars.

Commenting on the update, Michael O’Sullivan, the company’s CEO, said in a statement: “Despite the impact of the Covid-19 pandemic and the fact that our stores have been closed since March 22nd, we ended the first quarter in a strong financial and cash position. We began to re-open our stores earlier this month, and expect to have over 400 stores open by this weekend; we have been pleased with the traffic levels and sales that we have seen so far. There is considerable uncertainty ahead, but we are current on our accounts payable, we have lean inventories, and we have ample liquidity.”

The company ended the first quarter with 1,639 million dollars in liquidity, including 1,488 million dollars in unrestricted cash and 151 million dollars in availability on its ABL facility. The company now expects to open 64 new stores, while relocating or closing 26 stores, for a total of 38 net new stores in fiscal 2020 compared to a previous plan of 80 new stores and 54 net new stores. A total of 16 new stores have been shifted from fall 2020 to spring 2021.

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