Burlington Stores' FY, Q4 Nets Fall
BURLINGTON, N.J.-Although the company's top line picked up momentum in both periods, Burlington Stores posted declines of 36.2 percent and 6.4 percent in fiscal-year and fourth-quarter net income, respectively.
Net income for the year totaled $16.2 million, and for the fourth quarter was $63.6 million (the company posted a net loss for the first three quarters of the year of $47.4 million). Net sales for the year ending on Feb. 1 reached $4.4 billion, up 7.2 percent and including an increase of 4.7 percent in same-store sales. For the quarter, net sales were $1.3 billion, gaining 1.3 percent in total and 4 percent in same-store sales.
Much of the dropoff in fourth-quarter net occurred because of a more than four-fold increase in income tax expense, to $16.2 million. Selling, general and administrative expenses in the quarter edged up 1.8 percent in dollars and 16 basis points as a percentage of sales, to 27.8 percent. Gross margin rose 28 basis points to 42.1 percent.
Tom Kingsbury, president and CEO of Burlington Stores, said the increases in both net sales and same-store sales resulted from the retailer's improvement in execution of its off-price model. "We remain focused on delivering great value, brands and freshness to our customers every day, as well as executing our growth initiatives to improve comparable-store sales, expand our retail store base and enhance our operating margins in fiscal 2014 and beyond," Kingsbury said.