Published
Aug 25, 2016
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Burlington raises full-year guidance following positive Q2, first half 2016 results

Published
Aug 25, 2016

Burlington Stores, Inc. on Thursday reported its second quarter and first half fiscal 2016 results. Burlington CEO Tom Kingsbury said he was very pleased with the results, which were driven by “continued improvement in the execution of our off-price operating model.”



 
“Our consistently strong performance has also enabled us to take advantage of favorable interest rates resulting in the re-pricing of our term loan on July 29, 2016,” he added. “We believe we are well positioned for the fall season and remain focused on delivering great value, relevant brands, fresh product and an improved store experience for our customers every day.”
 
Net sales for the second quarter increased 9.7% to $1,255.1 million, which includes a 5.4% increase in comparable store sales and an increase of $51.8 million from new and non-comparable stores.

Net income increased 87.1% to $20.4 million, or $0.28 per diluted share, and adjusted net income increased 90.1% to $28.2 million, or $0.39 per diluted share. Adjusted EBITDA increased 31.4% to $99.1 million and gross margin expanded by 40 basis points to 39.9%.
 
The first half net sales increased 9.0% to $2,537.7 million including a 4.9% increase in comparable store sales. New and non-comparable store sales also contributed $104.4 million.
 
Net income increased 58.2% to $57.9 million, or $0.80 per diluted share, and adjusted net income increased to $69.9 million from $46.1 million in the first half of fiscal 2015. Adjusted EBITDA increased 24.4% to $220.1 million and SG&A, as a percentage of net sales, was 27.0% compared to 27.8% in the prior year.
 
In addition, comparable store inventory decreased 7% and turnover increased 15%.
 
Following the results, Burlington increased its full year 2016 outlook and now expects net sales to increase in range of 7.8% and 8.3%, comparable store sales to increase between 3.6% and 4.1% and adjusted net income per share to range between $2.92 and $2.96. The company also plans to open 25 new stores.
 
For the third quarter, Burlington expects a net sales increase in range of 7.1% to 8.1% and comparable store sales to increase in range of 2.5% and 3.5%.

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