On May 30, 2024, Burlington Stores Inc (BURL, Financial) released its 8-K filing for the first quarter of fiscal 2024, showcasing robust financial performance. Burlington Stores Inc, a leading off-price retailer, offers a wide range of in-season, fashion-focused merchandise, including apparel, footwear, accessories, home goods, and more.
Performance Highlights
Burlington Stores Inc reported a notable increase in total sales and net income for the first quarter of fiscal 2024. Key highlights include:
- Total sales increased by 11% to $2,357 million compared to the first quarter of fiscal 2023.
- Net income rose to $79 million, or $1.22 per diluted share, up from $33 million, or $0.50 per diluted share, in the same period last year.
- Comparable store sales increased by 2%.
- Adjusted EPS surged by 68% to $1.42, excluding certain expenses associated with the acquisition of Bed Bath & Beyond leases.
Financial Achievements and Metrics
The company's gross margin rate improved by 120 basis points to 43.5%, driven by lower markdowns and reduced freight expenses. Selling, general, and administrative expenses (SG&A) as a percentage of net sales decreased by 40 basis points to 35.0%. Adjusted SG&A, however, increased by 60 basis points to 27.1% of net sales.
Key financial metrics include:
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Total Sales | $2,357 million | $2,133 million |
| Net Income | $79 million | $33 million |
| Adjusted EPS | $1.42 | $0.84 |
| Gross Margin Rate | 43.5% | 42.3% |
Challenges and Outlook
Despite the positive results, Burlington Stores Inc faces challenges such as economic uncertainty and fluctuating consumer demand. CEO Michael O’Sullivan commented,
“We are very pleased with how our sales trends developed in the first quarter. The quarter got off to a slow start in February, likely due to disruptive weather and delayed tax refunds, but then our sales trend picked up.”
Looking ahead, the company has increased its outlook for fiscal year 2024, expecting adjusted EPS to range between $7.35 and $7.75, an 18% to 24% increase over fiscal 2023. The company plans to open approximately 100 new stores and anticipates total sales growth of 8% to 10% for the year.
Conclusion
Burlington Stores Inc's strong first-quarter performance, marked by significant sales growth and margin improvement, positions the company well for the remainder of fiscal 2024. Value investors and potential GuruFocus.com members can find detailed insights and further analysis on Burlington Stores Inc's earnings by visiting the full 8-K filing.
Explore the complete 8-K earnings release (here) from Burlington Stores Inc for further details.
