Burlington posts Q2 sales rise of 9.9 percent

Burlington Stores, Inc. has reported total sales for the 13 week period ended August 4, 2018 increased 9.9 percent to 1,499 million dollars. Comparable store sales increased 2.9 percent, on top of last year’s 3.5 percent comparable store sales increase. For the six months period total sales increased 11.3 percent, which included a comparable store sales increase on a shifted basis of 3.8 percent, on top of last year’s 2 percent comparable store sales increase.

Commenting on the results, Tom Kingsbury, the company’s CEO, stated in a statement: “We are pleased to continue our strong earnings momentum in fiscal 2018 with solid second quarter results, driven by our overall 9.9 percent sales growth and an 80 basis point adjusted EBIT margin improvement. Our 2.9 percent comparable store sales increase was up against our most difficult multi-year quarterly comparison. These sales and margin results enabled the Company to drive a 51 percent increase in adjusted EPS in the second quarter, well ahead of our guidance.”

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Burlington Stores’ Q2 and H1 result highlights

Gross margin for the second quarter expanded by approximately 70 basis points over last year’s levels to 41.4 percent. Net income increased 51 percent over the prior year period to 71 million dollars or 1.03 dollars per share against 0.66 dollar last year. Adjusted net income increased 54 percent to 79 million dollars or 1.15 dollars per share compared to 0.72 dollar last year.

For the six months, net income increased 55 percent over the prior year period to 154 million dollars or 2.23 dollars per share against 1.40 dollars last year. Adjusted EBIT increased by 25 percent or 45 million dollars above last year to 224 million dollars, representing an 80 basis point increase. Adjusted net income of 166 million dollars was up 54 percent, while adjusted EPS was 2.41 dollars vs. 1.51 dollars in the prior year period. Excluding the benefit from the revaluation of deferred tax liabilities, adjusted net income of 162 million dollars was up 51 percent, while adjusted EPS was 2.35 dollars, up 56 percent against last year.

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Burlington Stores reveals FY18 and Q3 outlook

For Fiscal 2018, the company now expects total sales to increase in the range of 10.1 percent to 10.6 percent, excluding the 53rd week impact in 2017; this assumes shifted comparable store sales to increase in the range of 2 percent to 3 percent for the balance of fiscal 2018, resulting in a full year shifted comparable store sales increase of 2.9 percent to 3.4 percent on top of the 3.4 percent increase during fiscal 2017; adjusted EBIT margin to increase 30 to 40 basis points; to open 43 net new stores; adjusted EPS in the range of 6.13 dollars to 6.20 dollars, utilizing a fully diluted share count of approximately 68.8 million.

For the third quarter, the company expects total sales to increase in the range of 11 percent to 12 percent; shifted comparable store sales to increase in the range of 2 percent to 3 percent on top of a 3.1 percent increase during the third quarter of fiscal 2017; and adjusted EPS in the range of 1 dollar to 1.04 dollars, which assumes a fully diluted share count of approximately 68.7 million shares, as compared to 0.70 dollar last year.

Picture:Facebook/Burlington