Burlington More Than Doubles FY Net

Cost reductions and a respectable sales rise boost the bottom 128.2 percent
March 4, 2016David Gill

burlingtonlogo3x2BURLINGTON, N.J.-With significant decreases in expenses, Burlington Stores’ fiscal year net income leaped by 128.2 percent, finishing at $150.5 million.

The bottom line benefited from a 1.2 percent drop in selling, general and administrative expenses (which also declined 136 basis points as a percentage of sales, to 27.4 percent). In addition, costs related to debt amendments and secondary offerings fell from $2.4 million to $247,000, and an expense related to stock option modification was slimmed by more than half to $1.4 million.

Net sales for the year, which ended on Jan. 30, rose 5.9 percent to $5.1 billion, including a 2.1 percent pickup in same-store sales. In the fourth quarter, net income totaled 98.8 million, up 4.1 percent from the prior year’s fourth quarter, as sales increased by 3.7 percent to $1.5 billion.

Looking ahead to the new fiscal year, Burlington said it expects net sales to rise by from 6.5 to 7.5 percent, with same-store sales gaining from 2.5 to 3.5 percent. The retailer “ended the year with reductions in both comparable-store and aged inventories and began fiscal 2016 with strong product offerings and significant open-to-buy to capitalize on the many opportunities we see in the market place,” said Tom Kingsbury, president and CEO.

David GillDavid Gill | Senior Editor
dgill@hfnmag.com

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.

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