Burlington Coat Factory Slashes First-Quarter Loss
BURLINGTON, N.J.-Burlington Coat Factory reduced its first-quarter net loss from $21.1 million last year to $3.9 million in the quarter that ended on April 28.
Net sales rose 5.7 percent to $982.4 million, including a same-store sales increase of 0.6 percent. Noting the sales gain, Tom Kingsbury, Burlington's CEO, said, "We are extremely pleased with our inventory management, which resulted in a 14 percent faster inventory turnover. In addition, our 15 percent reduction in aged goods is allowing us to deliver more fresh values to our customers on a daily basis."
Along with the sales pickup, Burlington's first quarter of last year included a $37.8 million loss on the extinguishment of debt. The absence of this in the first quarter of this year greatly helped its bottom line.
Gross margin was down 96 basis points to 36.9 percent. Selling, general and administrative expenses rose 6.3 percent in dollars and 17 basis points as a percentage of sales, to 31.3 percent.