Burlington Stores updates fiscal 2017 earnings on Q1 sales increase
Burlington Stores has updated its fiscal year 2017 earnings outlook, following a first quarter performance that included an increase in total sales and net income and an expansion in gross margin.
The company initially provided its first quarter and fiscal 2017 earnings guidance in March, expecting full year adjusted net income per share to be in range of $3.77 to $3.87. Now, Burlington expects its adjusted net Income per share to be in the range of $3.86 to $3.96
Delayed tax refunds negatively impacted the off-price retailer in the quarter, and resulted in a slight comparable sales increase of 0.5%. Total sales, however, met expectations by increasing 5.0% to $1,346.5 million driven by $65.1 million in new and non-comparable sales.
Net income for the quarter increased 39.6% to $52.4 million, or $0.73 per diluted share, and adjusted net income increased 36.0% to $56.6 million, or $0.79 per diluted share. Both improvements were driven by top line growth and an 80 basis point margin expansion to 40.9%.
SG&A as a percentage of sales was 26.6%, other revenue/other income decreased 30 basis points and adjusted EBITDA increased 13.1% to $136.8 million.
“We are pleased with our expansion in operating margin as well as our 39% increase in adjusted net income per share in the first quarter,” said Tom Kingsbury, Chief Executive Officer. “Importantly, momentum built throughout the quarter with combined March and April comparable sales rising 4.5%. It is worth noting that May is off to a solid start.”
Burlington reported its full fiscal 2017 outlook and expects net sales to increase in range of 7.3% to 8.1% and comparable store sales to increase in range of 2% to 3%. The company also expects second quarter net sales to increase in the range of 6.7% to 7.7%, comparable store sales to increase in range of 2% to 3%, and adjusted net income to range from $0.46 to $0.50.
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