Burlington Stores, Inc. has announced impressive second-quarter fiscal 2024 results, exceeding both sales and earnings expectations. The company’s strong performance was driven by strategic initiatives like store expansion, merchandise optimization, and supply chain enhancements. Burlington Stores has also raised its fiscal 2024 outlook based on these positive trends.
The company reported adjusted earnings of $1.20 per share, surpassing the Zacks Consensus Estimate of 95 cents. This represents a 100% increase from the 60 cents earned in the year-ago quarter. Excluding the acquisition of Bed Bath & Beyond leases, earnings were $1.24 per share compared to 63 cents in the same period last year. Total revenues of $2,465.5 million increased 13.4% from the prior-year quarter, exceeding the Zacks Consensus Estimate of $2,421 million. The company’s comparable store sales also jumped 5% from the year-ago period.
Burlington Stores’ success is attributed to strategic initiatives aimed at driving growth and profitability. The company has focused on expanding its store footprint, opening 36 net new stores in the second quarter, bringing the total to 1,057 locations. They are also relocating four older, oversized stores as part of ongoing efforts to optimize their store base. Burlington is on track to open approximately 100 net new stores and relocate around 30 locations in fiscal 2024. Sales from these new stores are exceeding expectations, typically targeting about $7 million in sales for the first full year of operation. This expansion strategy is a crucial part of Burlington’s growth plan as they continue to expand their store network across the United States.
Burlington Stores has also been optimizing its merchandise assortment by increasing the mix of better brands, which helps attract more customers and reinforce their value proposition. The company has made significant progress in enhancing its supply chain through productivity initiatives, including modernizing its distribution centers with more automation. This focus on operational improvements, along with better inventory management resulting in faster turnover and lower markdowns, supports overall profitability.
Looking ahead, the company anticipates a 10-12% increase in total sales for the fiscal third quarter, with comparable store sales expected to increase 0-2% from the year-ago quarter. Adjusted EBIT margin is expected to improve 60-80 bps year over year in the third quarter. For the fiscal fourth quarter, comparable store sales are projected to remain flat or grow up to 2%, with total sales expected to increase between 5% and 7%. However, it’s important to note that the shift to a 53rd week in the fiscal year is anticipated to have a significant negative impact on total sales, adjusted EBIT, and adjusted EPS for the fourth quarter.
Overall, Burlington Stores is demonstrating strong financial performance driven by strategic initiatives. Their focus on expansion, merchandise optimization, and supply chain enhancements is fueling growth and profitability, creating a positive outlook for the future.
