Burlington Stores Slims Q2 Loss
BURLINGTON, N.J.-Sales gains on both a total and same-store basis helped narrow Burlington Stores' second-quarter net loss from $25 million last year to $6.5 million this year.
Net sales for the quarter, which ended on Aug. 2, rose 8.3 percent to $1 billion, while same-store sales gained 4.7 percent. The latter followed on a same-store increase of 7.8 percent in last year's second quarter.
Gross margin tacked on 48 basis points to finish the quarter at 38.2 percent. Selling, general and administrative expenses increased 7.1 percent in dollars but declined 37 basis points as a percentage of sales, to 33.5 percent.
Tom Kingsbury, Burlington's president and CEO, said the second-quarter results "are indicative of the continued improvement in the execution of our off-price model." Looking ahead, Kingsbury added, "We believe we are well positioned for the fall season based on the level and currency of our inventory, and remain focused on delivering great value, brands, store experience and fresh product to our customers every day."
Burlington also said it expects third-quarter net sales to rise by between 6.4 and 7.4 percent, with a same-store sales pickup of from 3 to 4 percent. For the fiscal year as a whole, net sales are projected for a 6.5-to-7.2 percent increase, along with a gain in same-store sales of about 3 percent.