For the quarter ended Feb. 1, the parent of Burlington Coat Factory posted net income of $63.58 million, down from $67.95 million in the prior-year quarter. Excluding certain items, adjusted net income was $81.02 million. Pro Forma adjusted net income per share was $1.07, compared to $1.15 last year. That beat analysts’ average estimate for $1.03 a share.
‘Strong Sales, Bottom Line Performance’
Net sales rose to $1.334 billion from $1.317 billion a year ago, and were in line with analysts’ estimate for $1.34 billion in sales. Comparable store sales were up 4%.
“We are extremely pleased with our results in the fourth quarter and for the full year, given our strong sales and bottom line performance,” said Tom Kingsbury, president/ceo, noting that for its 2013 year, comp sales rose 4.7% and a 15.6% increase in adjusted EBITDA. “These results benefited from strong fourth quarter comps of 4% as we continued to improve the execution of our off-price model. “
Gross margin expanded by 30 basis points primarily due to improved merchandising margins. Costs to process goods through the company’s supply chain and buying costs, which are included in selling and administrative expenses, rose by a similar rate, as expected.
Looking ahead to its first quarter, Burlington estimated comp store sales will rise 2% to 3% while adjusted net income would be between 19 cents to 23 cents a share.
Analysts expect the company to report earnings of 23 cents a share and revenues of $1.14 billion.