Burlington Stores says Q4 same-store sales below estimates

For its fourth quarter ended February 2, 2019, Burlington Stores, Inc. reported total sales increase of 2.8 percent to 1,991 million dollars. Excluding the 53rd week last year, the company said, total sales increased 7.4 percent with new and non-comparable stores contributing an incremental 173 million dollars in sales during the quarter. Comparable store sales increased 1.3 percent on a shifted basis. On GAAP basis, for the 52 weeks period total sales increased 9.2 percent to 6,643 million dollars and net income was 415 million dollars or 6.04 dollar per share compared to 385 million dollars or 5.48 dollars per share last year.

Commenting on the financial update, Tom Kingsbury, the company’s CEO, said in a statement: “Despite our fourth quarter sales performance coming in below our expectations, we nevertheless exceeded our adjusted EPS guidance through disciplined expense management. While we are disappointed with how the year ended from a sales perspective, we did have a solid fiscal 2018 on both the top and bottom line. We still expect fiscal 2019 adjusted EPS to increase low double digits on a comparable basis versus fiscal 2018.”

Highlights of Burlington Stores’ Q4

The company said, gross margin for the 13-week period was 836 million dollars compared to 814 million dollars for the 14-week period last year. Excluding the 53rd week last year, gross margin as a percentage of net sales was flat against last year’s rate at 42 percent.

The company’s net income on a 13-week basis was 184 million dollars or 2.70 dollar per share against 241 million dollars or 3.47 dollar per share, on a 14-week basis last year. Excluding last year’s impact of the 53rd week and the revaluation of 2017 deferred tax liabilities, adjusted net income increased 28 percent to 2.83 dollars per diluted share. Adjusted EBIT on a 13-week basis was 261 million dollars compared to 250 million dollars on a 14-week basis last year, while excluding the 53rd week last year, adjusted EBIT improved 7 percent or 16 million dollars above last year and excluding the 53rd week last year, adjusted EBIT margin declined approximately 10 basis points.

Full year operating results of Burlington Stores

Excluding the 53rd week last year, total sales increased 10.7 percent driven by a 477 million dollars increase in new and non-comparable store sales, as well as a 3.2 percent increase in our comparable store sales on a shifted basis, on top of last year’s 3.4 percent comparable store sales increase.

Net income increased 9 percent over last year to 415 million dollars, or 6.04 dollars per diluted share against 5.44 dollars per diluted share last year. Adjusted EBIT increased by 17 percent or 87 million dollars above last year, to 600 million dollars, representing an approximately 50 basis point increase in rate.

Adjusted net income, the company added, excluding last year’s revaluation of deferred tax liabilities, increased 46 percent to 6.44 dollars per diluted share. This includes the 6 cents per share benefit recorded in the second quarter of fiscal 2018.

Burlington Stores reveals Q1 and FY19 outlook

For the first quarter of fiscal 2019, the company expects due to the uncertainty around the timing, aggregate amount and average size of IRS refunds this tax season coupled with Easter shifting back three weeks, total sales to increase in the range of 7 percent to 9 percent; comparable store sales to increase in the range of 0 to 2 percent on top of a 4.8 percent increase during the first quarter of Fiscal 2018; and adjusted EPS in the range of 1.21 dollars to 1.31 dollar compared to 1.26 dollar last year.

For fiscal 2019, the company expects: total sales to increase in the range of 9 percent to 10 percent; comparable store sales to increase in the range of 2 percent to 3 percent for the second, third and fourth quarters of fiscal 2019, translating to annual comparable store sales in the range of 1.5 percent to 2.8 percent, on top of the 3.2 percent increase during fiscal 2018; adjusted EBIT margin to increase 0 to 10 basis points; and adjusted EPS in the range of 6.93 dollars to 7.06 dollars, representing growth of 10 percent to 12 percent.

The company plans to open 50 net new stores, and invest capital Expenditures, net of landlord allowances, of approximately 310 million dollars.

Picture:Facebook/Burlington