Burlington Stores Goes from Loss to Profit in Q2
Posted on August 28, 2015 by
BURLINGTON, N.J.-In a broadly upbeat second quarter, Burlington Stores transformed a net loss of $6.5 million in the year-ago second quarter into net income of $10.9 million, thanks in large part to strong performance in its home department.
Net sales in the quarter, which ended on Aug. 1, totaled $1.1 billion, up 9.6 percent from a year ago and including a gain of 5.6 percent in same-store sales. Burlington’s home department was one of its star performers, according to Tom Kingsbury, president and CEO, who noted in a conference call yesterday with financial analysts that home, bath, cosmetics, fragrances, men’s, shoes and juniors all registered solid sales in the quarter.
Also helping the bottom line, gross margin increased by 100 basis points to 39.2 percent. Selling, general and administrative expenses tacked on 9 percent in dollars but subtracted 19 basis points as a percentage of sales, to 33.4 percent.
Based on the second-quarter numbers, Burlington Stores now expects net sales to rise by between 6 and 7 percent for the fiscal year, with same-store sales trending up by 2 to 3 percent. “By category, we expect to see continued sales growth from the investments we’ve made in our lady’s apparel, home, bath-and-body and accessories businesses,” Kingsbury said. “We continue to be underdeveloped in these areas and are very excited about the opportunity for the remainder of 2015 and beyond.”