Burlington Stores annual net income increases 78 percent

Burlington Stores, Inc. posted total sales on a 14 week basis increased 14.9 percent over the prior year period to 1,937 million dollars, while sales increased 10 percent on a 13 week basis to 1,855 million dollars. On a 53 week GAAP basis, total sales increased 9.3 percent to 6,085 million dollars, net income increased 78 percent to 385 million dollars and EPS increased 82 percent to 5.48 dollars. On a 52 week basis, total sales increased 7.8 percent to 6,003 million dollars driven by a comparable store sales increase of 3.4 percent and 274 million dollars in new and non-comparable sales.

“We are extremely pleased to report strong fourth quarter results, driven by a 5.9 percent comparable store sales increase, which was on top of last year’s 4.6 percent increase. On a 13 week basis, we achieved a 22 percent increase in adjusted EPS excluding the estimated impact of the 2017 Tax Reform. This result was driven by overall sales growth of 10 percent and an improvement of 50 basis points in both adjusted EBITDA and EBIT margin. We also passed several significant milestones in fiscal 2017, as we surpassed 6 billion dollars in total sales, expanded our adjusted EBIT margin by 90 basis points to 8.6 percent,” said Tom Kingsbury, the company’s CEO in a press release.

Financial review of Q4 results

The company said, fourth quarter growth on a 13 week basis was driven by an incremental 79 million dollars from new and non-comparable stores, as well as a 5.9 percent increase in comparable store sales. The company added that contribution from new and non-comparable stores was reduced by approximately 25 million dollars due to previously disclosed weather related store closings.

Gross margin on a 14 week basis was 814 million dollars, on a 13 week basis, gross margin expanded by 20 basis points over last year’s levels to 42 percent, driven by increased merchandise margin. Net income increased 92 percent over the prior year period to 241 million dollars or 3.47 dollars per share against 1.77 dollars last year; including 0.04 dollar in EPS from the 14th week. Adjusted net income on a 13 week basis, excluding the estimated impact of the 2017 Tax Reform, was 2.17 dollars per share compared to 1.78 dollars last year driven by top line growth, gross margin expansion, tight expense control, share repurchases and a 0.03 dollar per share benefit from the accounting change for stock based compensation.

Adjusted EBITDA increased 17 percent or 43 million dollars above the prior year period, to 298 million dollars. On a 13 week basis, Adjusted EBITDA increased 14 percent or 35 million dollars to 290 million dollars, representing a 50 basis point expansion.

Adjusted EBITDA on a 53 week basis increased 19 percent or 112 million dollars above last year to 696 million dollars. On a 52 week basis, adjusted EBITDA grew by 18 percent, or 104 million dollars to 688 million dollars, representing a 95 basis point increase in rate against fiscal 2016. Excluding the estimated impact of the 2017 Tax Reform, adjusted net income was 4.37 dollars per share compared to 3.24 dollars last year.

FY18 sales expected to grow between 9 to 10 percent

For the full fiscal year 2018, the company expects total sales growth in the range of 9 percent to 10 percent compared to fiscal 2017, excluding the 53rd week; comparable store sales to increase in the range of 2 percent to 3 percent on top of last year’s 3.4 percent increase; adjusted EBITDA margin expansion of 30 to 40 basis points; adjusted EBIT margin expansion of 20 to 30 basis points; 35 to 40 net new store opening and adjusted EPS in the range of 5.73 to 5.83 dollars. The company expects Adjusted EPS excluding the estimated impact of the 2017 Tax Reform and the accounting for stock based compensation to be in the range of 4.71 to 4.81 dollars, representing an increase of 14 percent to 16 percent over the comparable 52 week 2017 adjusted EPS of 4.14 dollars.

For the first quarter, the company expects total sales to increase in the range of 9.5 percent to 10.5 percent; comparable store sales to increase in the range of 2 percent to 3 percent; and adjusted EPS in the range of 1.05 dollars to 1.09 dollars, as compared to 0.79 dollar last year. Excluding the estimated benefit of the 2017 Tax Reform and the accounting change for stock based compensation, the company expects adjusted EPS growth to be in the range of 16 percent to 21 percent.

Picture:Facebook/Burlington