Burlington Stores swings to Q1 profit, will open net 25 new stores
Burlington, N.J. — Burlington Stores Inc. had an all-around strong first quarter of fiscal 2014 that included a better-than-expected net income of %11.77 million, up from a net loss of $5.56 million in year-ago period. The retailer expects to open 25 net new stores during the fiscal year, including the opening of one new store and closing of one existing store in the second quarter.
Total revenues grew 6% to $1.13 billion from $1.06 billion, and same-store sales rose 2.7%. Expanded gross margins and lower interest expense helped return Burlington to recording a profit.
During fiscal 2014, Burlington Stores expects net sales to increase in the range of 5.8% to 6.8% and same-store sales to increase between 2% to 3%. During the second quarter, the retailer expects net sales are expected to increase between 5% and 6% and same-store sales to grow 2-3%.
“We are extremely pleased with our solid results in the first quarter as we continued to build upon our momentum from 2013 with both strong sales and bottom line performance,” said Tom Kingsbury, president and CEO, Burlington Stores Inc. “We remain focused on delivering great value, brands and fresh product to our customers every day as well as executing our growth initiatives to improve comparable store sales, expand our retail store base and enhance our operating margins.”
Dunkin’ Donuts details California expansion
Canton, Mass. — Dunkin’ Donuts has filed for permits to open its first traditional restaurants in California. The new restaurants are planned for Downey, Long Beach, Modesto, Santa Monica and Whittier.
Specific locations and anticipated opening dates will be announced later this summer, with construction scheduled to begin later in June, Since opening California for franchise development in 2013, Dunkin’ Donuts has executed store development agreements for nearly 200 new restaurants total to date. The company believes it can eventually have as many as 1,000 restaurants throughout the state.
The company has already opened three non-traditional Dunkin’ Donuts restaurants in California, including a recent Dunkin’ Donuts/Baskin-Robbins combination location inside the Embassy Suites San Diego Bay Downtown Hotel.
The company has also signed multi-unit store development agreements with four new franchise groups to develop 54 new restaurants throughout Southern California in the coming years, including 14 stores in San Diego beginning in 2016, 16 stores in northern San Diego and southern Inland Empire beginning in 2015, 14 stores throughout Glendale, Burbank and Santa Clarita Valley starting in 2015, and two stores in Santa Barbara and eight stores throughout Ventura County beginning in 2016.
Franchise opportunities for Dunkin’ Donuts still remain available throughout California in Fresno, Bakersfield and Santa Barbara, Northern California, and portions of Southern California.
Christopher & Banks Q1 income jumps, plans nine new stores
Minneapolis — Christopher & Banks Corp. more than quadrupled its net income to $2.6 million in the first quarter of fiscal 2014 compared to $0.6 million in the same quarter the prior year. The women’s apparel chain also plans to open six new outlet stores and three new stores in its MPW (Missy, Petite, Women) format during the fiscal year.
In addition, Christopher & Banks plans to close four existing Christopher Banks stores and replace them with MPW stores, and reformat 67 stores to its MPW format, consolidating seven in the process, following strong sales in existing MPW stores.
Lower costs and expenses drove the retailer’s net income growth. Net sales dropped 7% to $100.6 million from $107.7 million, while same-store sales declined 0.2%.
“Throughout the first quarter, we realized continued momentum in our strategic initiatives despite the challenges presented by the severe winter weather experienced during the first half of the quarter,” said LuAnn Via, president and CEO of Christopher & Banks. “While our same-store sales were slightly below our expectations for the quarter, we saw business improve as the weather became more seasonal and we exceeded our gross margin expansion target, with a refined merchandise offering and enhanced inventory strategies. Furthermore, sales and profitability in our MPW (Missy, Petite, Women) stores continued to perform above the company average. Looking ahead, additional opportunities to enhance our merchandise offering, further engage our customer and broaden our reach with our marketing programs are expected to result in continued improvement in store productivity.”
Looking ahead, Christopher Banks expects same-store sales to increase in the low to mid-single digit range.