Burlington Stores Q3 Net Loss Widens
BURLINGTON, N.J.-Costs related to its initial public offering, rising interest expenses and a reduced income-tax benefit deepened Burlington Stores' third-quarter net loss from $7.4 million last year to $16.9 million this year.
The retailer incurred costs of more than $12 million related to its initial public offering, which was completed in October, including expenses for stock option modification. In addition, interest expense rose 19.3 percent, and the company's income-tax benefit was only slightly more than one-half of the benefit from the third quarter of last year.
Net sales in the quarter, which ended on Nov. 2, were up 10 percent to $1.1 billion, including a gain in same-store sales of 3.9 percent. Gross margin was up 28 basis points to 39 percent. Selling and administrative expenses increased 8.4 percent in dollars but fell 50 basis points as a percentage of sales, to 34.1 percent.
Tom Kingsbury, Burlington Stores' president and CEO, said the sales results made for a strong quarter. Kingsbury said the retailer is "focused on executing our growth drives of improving comparable-store sales, expanding our retail store base and enhancing our operating margins in the future."