Burlington Stores Goes from Loss to Profit in Q1
BURLINGTON, N.J.-In what its top executive, Tom Kingsbury, termed a quarter of "solid results," Burlington Stores reversed a net loss of $5.6 million into net income of $11.8 million for its fiscal first quarter ending on May 3.
Kingsbury, president, CEO and recently named chairman as well, said the first quarter saw the retailer "build upon our momentum from 2013 with both strong sales and bottom-line performance." Net sales rose 5.9 percent to a total of $1.1 billion, including a same-store sales increase of 2.7 percent--"which we believe is a direct result of the continued improvement in the execution of our off-price model," Kingsbury said.
According to the company, the improved execution was a key factor in the 78-basis-point increase in gross margin, to 38.1 percent. Selling, general and administrative expenses rose 5.9 percent in dollars but were essentially flat as a percentage of sales, at 30.8 percent.
Based on the first-quarter results, Burlington Stores said it now expects annual sales for this fiscal year to gain from 5.8 percent to 6.8 percent. Same-store sales are projected for an increase of from 2 to 3 percent.