Earnings Highlights and Review: Burlingtons Quarterly Sales Grew - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Earnings Highlights and Review: Burlingtons Quarterly Sales Grew 5%; Earnings Surged 40%

Research Desk Line-up: Big Lots Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Burlington Stores, Inc. (NYSE: BURL) following the Company’s posting of its first quarter fiscal 2017 financial results on May 25, 2017. The discount retailer exceeded earnings expectations and also provided outlook for the fiscal year and upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:


Get more of our free earnings reports coverage from other constituents of the Discount, Variety Stores industry. Pro-TD has currently selected Big Lots, Inc. (NYSE: BIG) for due-diligence and potential coverage as the Company reported on May 26, 2017, its financial results for Q1 FY17 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Big Lots when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BURL; also brushing on BIG. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

For the quarter ended April 29, 2017, Burlington’s total sales increased 5.0% to $1.35 billion compared to sales of $1.28 billion in Q1 2016, driven by an increase of $65.1 million from new and non-comparable stores, as well as a 0.5% increase in comparable store sales. The Company’s sales numbers fell slightly short of analysts’ expectations of $1.36 billion.

For Q1 2017, Burlington’s gross margin expanded by 80 basis points to 40.9% driven primarily by increased merchandise margin. In addition, product sourcing costs as a percent of sales improved 10 basis points on y-o-y basis. The Company’s SG&A, less product sourcing costs, as a percentage of sales was 26.6% for the reported quarter, representing approximately 10 basis points of improvement compared with the prior year quarter. This improvement was driven by a decrease in marketing expenses, business insurance costs, utilities, and the timing of approximately $3.0 million of expenses that the Company had planned in Q1 2016, but is now expecting to incur in the upcoming quarter.

During Q1 2017, Burlington’s adjusted EBITDA rose 13% to $136.84 million compared to adjusted EBITDA of $120.97 million in Q1 2016. The Company’s adjusted EBITDA as a percentage of sales expanded 70 basis points compared to the year ago period, driven by gross margin expansion. Burlington’s effective tax rate on a GAAP basis improved 720 basis points to 30.4% in Q1 2017, primarily attributed to the adoption of the new share-based compensation accounting, which contributed 660 basis points of the improvement.

For Q1 2017, Burlington’s net income surged 39.6% to $52.37 million, or $0.73 per diluted share, compared to $37.51 million, or $0.52 per share, in Q1 2016. The Company’s adjusted net income increased to $0.79 per share versus $0.57 per share in the year ago same quarter. The improvements in the Company’s earnings were driven by top-line growth and margin expansion, share repurchases since the end of Q1 2016, as well as the $0.07 benefit from the adoption of the new share-based compensation accounting. Burlington’s earnings surpassed Wall Street’s expectations of $0.79 per share.


In Q1 2017, Burlington’s Merchandise inventories were $725.5 million compared to $804.7 million in Q1 2016. The decline was attributed to a 7% drop in comparable store inventory which contributed to a 7% improvement in comparable store inventory turnover. The decline also reflected a decrease in pack and hold inventory, which as a percentage of total inventory represented 26% at the end of Q1 2017 compared to 28% at the end of Q1 2016.

Share Repurchase Activity

During Q1 2017, Burlington invested $48.9 million of cash to repurchase 518,165 shares of its common stock ending the period with approximately $151 million remaining on its share repurchase program. Since the end of Q1 2016, the Company has repurchased 2.4 million shares of its common stock under its share repurchase programs.


For FY17, Burlington is forecasting total sales to increase in the range of 7.3% to 8.1%. The Company is projecting comparable store sales to grow in the band of 2% to 3% for the balance of the year resulting in a full year comparable store sales increase of 1.6% to 2.4%. Burlington is projecting adjusted net income in the range of $3.86 to $3.96 per share. The Company expects to open 30 net new stores in the fiscal year and estimates to incur net capital expenditures of approximately $200 million.

For Q2 2017, Burlington is projecting total sales to increase in the range of 6.7% to 7.7%, and comparable store sales to grow between 2% to 3%. The Company is estimating adjusted net income in the range of $0.46 to $0.50 per share, inclusive of $0.02 benefit from the recent accounting change for share-based compensation and utilizing a fully diluted share count of approximately 71.2 million shares.

Stock Performance

On Friday, June 16, 2017, the stock closed the trading session at $96.24, slipping 1.18% from its previous closing price of $97.39. A total volume of 640.31 thousand shares have exchanged hands. Burlington Stores’ stock price soared 0.90% in the last three months, 10.33% in the past six months, and 51.65% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 13.56%. The stock is trading at a PE ratio of 29.70. At Friday’s closing price, the stock’s net capitalization stands at $6.80 billion.

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