On Friday, Burlington Stores Inc (NYSE: BURL) stock traded volume of 868742 shares during its last trading session as compared to its average volume of 1295180 shares over the recent month. BURL ended its day with the below stream along the move of -3.36% and closed at the price of $140.56 before opening at $143.87. It has total market capitalization is $10.09B.

Burlington Stores, Inc. (BURL) recently reported its results for the fourth quarter ended February 1, 2020.

Michael O’Sullivan, CEO, stated, “We are happy with our fourth quarter results, driven by a solid 3.9% comparable store sales increase.  Overall we generated a 10.5% sales increase, which resulted in a 40 basis point increase in Adjusted EBIT margin, and a 15% increase in Adjusted EPS, ahead of both our original and recently updated guidance. In addition, our inventory management made further progress during the fourth quarter, as our comparable store inventory reduced 15%, putting us in a very opportunistic inventory position as we enter Fiscal 2020.”

Fiscal 2019 Fourth Quarter Operating Results (for the 13-week period ended February 1, 2020 contrast with the 13 week period ended February 2, 2019)

  • Total sales increased 10.5% to $2,201M, while comparable store sales increased 3.9%. New and non-comparable stores contributed an incremental $151M in sales during the quarter.
  • Gross margin rate increased 20 basis points to 42.1%. Merchandise margin increased 40 basis points, which was partially offset by a raise in freight costs. Product sourcing costs, which are included in selling, general and administrative expenses (SG&A), were flat as a percentage of sales. Product sourcing costs include the costs of processing goods through our supply chain and buying costs.
  • SG&A increased $62M to $595M. As a result of our adoption of the new Lease Accounting Standard, favorable lease costs, initially recorded as a result of purchase accounting that occurred in 2006, are now included in SG&A.  In previous periods, these costs were included in depreciation and amortization.
  • Adjusted SG&A, defined as SG&A less product sourcing costs and favorable lease costs, as a percentage of sales reduced 20 basis points to 22.5%. This decrease was driven by strong sales growth, resulting in leverage on occupancy and marketing expense, as well as corporate costs. Note that Adjusted SG&A excludes $2.9M in management transition costs incurred during the fourth quarter of Fiscal 2019.
  • The effective tax rate increased 200 basis points to 24.0%. The Adjusted Effective Tax Rate increased 160 basis points to 23.8%.
  • Net income increased 12% to $206M, or $3.08 per share vs. $2.70 last year, and Adjusted Net Income increased 13% to $218M, or $3.25 per share vs. $2.83 last year. Adjusted Net Income and EPS exclude $0.04 per share for management transition costs. This increase in Adjusted Net Income was driven primarily by higher sales growth, merchandise margin improvement, and leverage on SG&A.
  • Fully diluted shares outstanding amounted to 67.0M at the end of the quarter contrast with 68.3M at the end of last year’s fourth quarter. The decrease was primarily the result of share repurchases under the Company’s share repurchase program, discussed in more detail below. From the end of the fourth quarter of Fiscal 2018 through the end of the fourth quarter of Fiscal 2019, the Company has repurchased about 1.7M shares of its ordinary stock under its share repurchase program.
  • Adjusted EBITDA increased 13%, or $40M higher than last year’s fourth quarter. Adjusted EBIT increased 14%, or $35M above the previous year period, to $297M. The 40 basis point increase in Adjusted EBIT as a percentage of sales was primarily driven by the same factors noted above that drove Adjusted Net Income growth. Note that Adjusted EBITDA and Adjusted EBIT exclude the impact of $2.9M in management transition costs incurred during the fourth quarter of Fiscal 2019.

Full Year Fiscal 2019 Results

  • Total sales increased 9.3% in Fiscal 2019, which included a comparable store sales increase of 2.7% on top of last year’s 3.2% comparable store sales increase.  Net income increased 12% over the previous year period to $465M, or $6.91 per share vs. $6.04 last year. Adjusted EBIT increased 12%, or $73M above last year, to $674M, representing a 20 basis point increase as a percentage of sales vs. the previous year period.  Adjusted Net Income of $499M was up 13% vs. last year, while Adjusted EPS was $7.41 vs. $6.44 in the previous year period.  Note that all adjusted full year results exclude the impact of $4.2M in management transition costs incurred during the third and fourth quarters of Fiscal 2019, or $0.06 per share.

Its earnings per share (EPS) expected to touch remained 14.50% for this year while earning per share for the next 5-years is expected to reach at 9.65%. BURL has a gross margin of 42.00% and an operating margin of 8.40% while its profit margin remained 6.40% for the last 12 months. The price moved ahead of -13.18% from the mean of 20 days, -30.64% from mean of 50 days SMA and performed -29.48% from mean of 200 days price. Company’s performance for the week was -9.80%, -35.66% for month and YTD performance remained -38.36%.


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