Burlington Stores Q1 net sales up 4.9 percent

Burlington Stores comparable store sales increased 0.8 percent for the first quarter ended May 2, 2015, following a comparable store sales increase of 2.7 percent in the first quarter of last year. Net sales increased 4.9 percent, or 54.8 million dollars to 1,183.1 million dollars.

“We are pleased with our 64 percent increase in adjusted EPS which was driven by a robust gross margin expansion. While our comp sales were positive for the ninth consecutive quarter, we were negatively impacted by the timing of IRS tax refunds, lower markdown sales due to significantly less markdown inventory, increased store closures due to weather, and receipt flow issues in three key Easter businesses,” stated Tom Kingsbury, Chairman and Chief Executive Officer.

Gross margin expanded by 160 basis points to 39.7 percent from 38.1 percent last year, primarily due to a reduction in markdowns. Adjusted EBITDA increased 9.9 percent, or 9.1 million dollars, to 101.4 million dollars, with a 40 basis point expansion in Adjusted EBITDA as a percentage of net sales.

The company also appointed Jennifer Vecchio as Executive Vice President/Chief Merchandising Officer. She brings great experience in the off-price model having spent fourteen years in merchandising at Ross from 1997 to 2011. Her last position at Ross was Executive Vice President of Merchandising for men’s and kids.

The company has also announced that effective July 5, all full time, and part-time associates with six months or more of service, will be paid at least 9 dollars per hour. Commenting on the management addition and wage rate increase, Tom Kingsbury said, “We are excited to announce that Jennifer Vecchio joined our executive leadership team as Chief Merchandising Officer. Jennifer has made considerable contributions while consulting with us over the past year and a half and I am delighted to have her on board in a permanent role. In addition, we strongly value our associate contributions and are committed to being an employer of choice which is evident by our announcement to have all of our full time, and part-time employees with at least six months of service, earn at least 9 dollar per hour.”

For the full fiscal year 2015, the company continues to expect net sales increase in the range of 6 percent to 7 percent; comparable store sales to increase between 2 percent to 3 percent and adjusted EBITDA margin expansion of 10 to 20 basis points. The company aims to open 25 net new stores. For the second quarter of Fiscal 2015 (the 13 weeks ending August 1, 2015), the company currently expects net sales to increase in the range of 7 percent to 8 percent and comparable store sales to increase between 3 percent to 4 percent.