US retailer Burlington Stores' sales soar 11% in Q1 FY24

The gross margin rate as a percentage of net sales improved significantly to 43.5 per cent, up from 42.3 per cent in Q1 FY23, an increase of 120 basis points. Net income for the quarter surged to $79 million, or $1.22 per share, compared to $33 million, or $0.50 per share, in Q1 FY23. Adjusted net income was even higher, at $91 million, or $1.42 per share, compared to $55 million, or $0.84 per share, in the previous year’s first quarter, Burlington Stores said in a press release.

The company reported adjusted EBITDA of $217 million, up from $157 million in Q1 FY23, representing an increase of 180 basis points as a percentage of sales. Adjusted EBIT also saw a significant increase, reaching $135 million compared to $87 million in Q1 FY23, an increase of 170 basis points as a percentage of sales.

Selling, general, and administrative expenses were 35.0 per cent of net sales, compared to 35.4 per cent in Q1 FY23, improving by 40 basis points. However, adjusted selling, general, and administrative expenses rose to 27.1 per cent of net sales from 26.5 per cent in the same quarter last year, marking an increase of 60 basis points.

Merchandise inventories at the end of the first quarter were $1,141 million, down 7 per cent from $1,231 million at the end of Q1 FY23. Comparable store inventories decreased by 6 per cent over the same period.

“We are very pleased with how our sales trends developed in the first quarter. The quarter got off to a slow start in February, likely due to disruptive weather and delayed tax refunds, but then our sales trend picked up. Comparable store sales increased 4 per cent during the months of March and April combined. This resulted in a 2 per cent comparable store sales increase for the quarter which was at the high end of our guidance range,” said Michael O’Sullivan, CEO.

ALCHEMPro News Desk (DP)