Burlington Stores edges past estimates, will open 50 net new stores
Burlington Stores Inc. had a positive first quarter that saw it meet internal guidance and exceed analyst predictions.
The off-price retailer reported net sales of $1.63 billion, up 7% from $1.52 billion the first quarter of fiscal 2018. Wall Street analysts had expected net sales of $1.62 billion. Adjusted net income fell 2% to $85.5 million from $87 million, with adjusted earnings per share staying flat at $1.26. Analysts had expected adjusted EPS of $1.25. Same-store sales rose 0.1%.
Burlington Stores also announced it will open a net of 50 new stores during the fiscal year.
“While our first quarter sales results came in at the low end of our expectations, our disciplined expense management enabled us to exceed the high end of our recently updated adjusted earnings per share guidance,” said Tom Kingsbury, CEO, Burlington Stores. “Although we saw strength in our children’s apparel, baby depot and home businesses, we remain very focused on improving our underperforming ladies apparel business. We were also pleased to be able to return $123 million to our shareholders through share repurchases during the first quarter.”
For the full fiscal year 2019, Burlington Stores expects total sales to increase in the range of 8.5% to 9.2%; this assumes same-store sales to increase in the range of 1% to 2% for the second quarter of fiscal 2019, and 2% to 3% for the balance of fiscal 2019, resulting in a full year same-store sales increase of 1.3% to 2.1% on top of the 3.2% increase during fiscal 2018.
During the second quarter of fiscal 2019, Burlington Stores expects total sales to increase in the range of 8% to 9% and same-store sales to grow 1%-2%.