Off-price retailer Burlington Stores, Inc. announced its results for the second quarter and six months ended July 30, 2016. Overall, EPS of $0.39 beats by $0.09, while revenue of $1.26B (+ 10.5% Y/Y) beat by $20M.
Highlights included a 9.7% increase in net sales, a 5.4% increase in comparable store sales and a 130 basis point expansion in Adjusted EBITDA margin. The 5.4% comparable store sales increase is on top of a 5.6% increase in the second quarter of fiscal 2015.
- Gross margin improved 40 basis points to 39.6% during the fiscal 2016 second quarter. This more than offset a 15 basis point increase in product sourcing costs, which are included in selling, general and administrative expenses (SG&A).
- Net income increased 87.1% to $20.4 million, or $0.28 per diluted share.
- Adjusted Net Income increased 90.1% to $28.2 million, or $0.39 per share vs. $0.19 per share last year.
Tom Kingsbury, Chief Executive Officer stated, “These results were driven by the continued improvement in the execution of our off-price operating model. Our consistently strong performance has also enabled us to take advantage of favorable interest rates resulting in the re-pricing of our term loan on July 29, 2016. We believe we are well positioned for the fall season and remain focused on delivering great value, relevant brands, fresh product and an improved store experience for our customers every day. I would like to thank our store and corporate teams for these results.”