Burlington Q2 Loss Rises, But So Do Sales

Burlington Coat FactoryBurlington, NJ—In its first earnings reports since its successful initial public offering in October, Burlington Stores Inc. today reported a widened third quarter loss due in part to charges related to debt and its IPO. Sales, however, continued to rise.

For the quarter ended Nov. 2, Burlington Stores posted a loss of $16.9 million compared with a loss of $7.4 million a year ago. Excluding $10.5 million in debt and IPO-related costs and other items, adjusted loss was 5 cents a share. That beat analysts’ average estimate for a loss of 6 cents a share.

Net revenue was up 9.9% to $1.07 billion ahead of analysts’ estimate for $1.05 billion in sales. Comparable store sales rose 3.9%.

Gross margin increased by 40 basis points to 39% compared with the prior year, driven by improved merchandise margin.

Selling, general and administrative expenses as a percentage of sales improved to 34.1% compared with from 34.6% last year. “The improvement was primarily related to the leverage benefit of 3.9% comparable store sales increase during the quarter,” the company said.

The company, which offers off-price branded clothing, shoes, accessories and coats at its Burlington Coat Factory stores, forecast its comp stores sales will rise between 2% to 3% during fourth quarter.



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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com