Burlington Stores raises outlook following strong Q3 results

Burlington Stores’ third quarter net sales increased 9.1 percent or 111.7 million dollars to 1,342.6 million dollars. This growth, the company said, was driven by a 3.7 percent increase in comparable store sales and 69.8 million dollars in sales from new and non-comparable stores. The company’s 3.7 percent comparable store sales increase follows a 2.8 percent increase in the third quarter of fiscal 2015. Burlington Stores has raised its fourth quarter and full year guidance backed by positive third quarter.

“We are very pleased with our third quarter results, which exceeded our sales and earnings guidance, continuing our strong momentum from the first half of the year. In the quarter, we delivered our 15th consecutive quarter of positive comparable store sales,” stated Tom Kingsbury, Chief Executive Officer in a statement.

Q3 highlights and nine months operating results

Gross margin for the third quarter expanded by 140 basis points to 41.2 percent and net income increased 114.4 percent to 32.4 million dollars or 0.45 dollar per diluted share. Adjusted net income increased 90.5 percent to 36.3 million dollars or 0.51 dollar per diluted share against 0.25 dollar last year. Adjusted EBITDA increased 32.7 percent or 27 million dollars to 109.6 million dollars.

For the 39 week period ended October 29, 2016, net sales increased 9.1 percent or 322.2 million dollars to 3,880.3 million dollars. Comparable sales rose 4.5 percent and 174.2 million dollars in sales from new and non-comparable stores contributed to this growth. The company’s 4.5 percent comparable store sales increase follows a 3 percent increase in the first nine months of fiscal 2015.

Gross margin expanded by 70 basis points to 40.3 percent and net income increased 74.7 percent to 90.3 million dollars or 1.25 dollars per diluted share. Adjusted net income increased 62.6 percent to 106.1 million dollars compared to 65.3 million dollars or 1.47 dollars per diluted share against 0.86 dollar per diluted share last year. Adjusted EBITDA increased 27.1 percent or 70.3 million dollars, to 329.6 million dollars.

The company raises full year outlook

Raising its full year fiscal 2016 outlook based on its strong year to date performance and positive outlook for the fourth quarter, the company said , it expects net sales to increase in the range of 8.4 percent to 8.7 percent; comparable store sales to increase in the range of 3.9 percent to 4.2 percent; adjusted net income per share in the range of 3.11 dollars to 3.15 dollars compared to the company’s prior guidance of 2.92 dollars to 2.96 dollars as compared with 2.31 dollars in fiscal 2015; adjusted EBITDA margin expansion of 70 to 80 basis points; and opening of 25 new stores.

For the fourth quarter, the company expects net sales to increase in the range of 6.6 percent to 7.6 percent; comparable store sales to increase in the range of 2.5 percent to 3.5 percent; and adjusted net income per share in the range of 1.63 dollars to 1.67 dollars compared to 1.49 dollars last year.

Picture:Facebook/Burlington Coat Factory