On August 29, 2024, Burlington Stores Inc (BURL, Financial) released its 8-K filing for the second quarter of fiscal 2024, showcasing robust financial performance that surpassed analyst expectations. Burlington Stores Inc is an off-price retailer offering a wide range of in-season, fashion-focused merchandise including women's ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts, and coats.
Performance Overview
Burlington Stores Inc reported total sales of $2,461 million for Q2 2024, a 13% increase compared to the same period last year. Comparable store sales grew by 5%, reflecting strong consumer demand and effective merchandising strategies. The company's net income for the quarter was $74 million, translating to diluted earnings per share (EPS) of $1.15, significantly higher than the $0.47 EPS reported in Q2 2023.
Excluding certain expenses associated with acquired Bed Bath & Beyond leases, adjusted EPS surged by 98% to $1.24. This performance was well above the analyst estimates of $0.90 EPS and $2,414.86 million in revenue.
Key Financial Achievements
The company's gross margin rate improved by 110 basis points to 42.8%, driven by lower markdowns and reduced freight expenses. Selling, general, and administrative expenses (SG&A) as a percentage of net sales decreased by 60 basis points to 35.1%, indicating better cost management and operational efficiency.
Michael O’Sullivan, CEO, stated, “We are pleased with our results from the second quarter. Comparable store sales increased 5%, while total sales increased 13%. Both of these metrics were well ahead of our expectations.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Sales | $2,461 million | $2,170 million |
| Net Income | $74 million | $31 million |
| Diluted EPS | $1.15 | $0.47 |
| Adjusted EPS | $1.24 | $0.63 |
Balance Sheet and Cash Flow
As of August 3, 2024, Burlington Stores Inc reported merchandise inventories of $1,223 million, a 5% increase from the previous year. The company ended the quarter with $1,476 million in liquidity, including $660 million in unrestricted cash. Total debt stood at $1,402 million, with no borrowings on its ABL facility.
Outlook
For the full fiscal year 2024, Burlington Stores Inc has raised its adjusted EPS guidance to a range of $7.66 to $7.96, reflecting confidence in continued strong performance. The company expects total sales to increase by 9% to 10%, with comparable store sales growth of 2% to 3%.
Overall, Burlington Stores Inc's Q2 2024 earnings report highlights significant sales growth, margin improvement, and strong financial health, positioning the company well for the remainder of the fiscal year.
Explore the complete 8-K earnings release (here) from Burlington Stores Inc for further details.
