Burlington Stores Inc Reports Second Quarter Fiscal 2024 Financial Results
Intellectia.AI Updated: 2024-08-29
Burlington Stores, Inc. Reports Second Quarter Fiscal 2024 Financial Results
Burlington Stores, Inc. (NYSE: BURL), a leading off-price retailer, announced its financial results for the second quarter of fiscal 2024, which ended on August 3, 2024.
Key Financial Metrics
| Metric | Q2 FY2024 | Q2 FY2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $2.461 billion | $2.177 billion | +13% | $2.41 billion |
| Net Income | $74 million | $31 million | +139% | N/A |
| Diluted EPS | $1.15 | $0.47 | +145% | $0.95 |
| Adjusted EBIT | $118 million | $70 million | +160 basis points | N/A |
| Adjusted EPS | $1.24 | $0.63 | +98% | N/A |
The company reported strong financial performance for the second quarter of fiscal 2024, with a 13% increase in total revenue from the same period last year and a 98% rise in adjusted EPS. This exceeded Wall Street's expectations for revenue and EPS, showing robust growth driven by higher sales and improved margins.
Segment Performance
| Segment | Q2 FY2024 Revenue | FY2024 Guidance | YoY Change | Comments |
|---|---|---|---|---|
| Comparable Store Sales | +5% | 0% to 2% for H2 FY2024 | N/A | Higher than expected growth |
| Gross Margin | 42.8% | N/A | +110 basis points | Improved by lowering markdowns and freight expenses |
| Product Sourcing Costs | $192 million | N/A | -60 basis points as % of sales | Decrease in percentage of net sales |
The company excelled in margins, with gross margin increasing by 110 basis points to 42.8%, primarily due to lower markdowns and reduced freight expenses. Product sourcing costs also improved, decreasing as a percentage of net sales.
Key Developments and Operational Highlights
- Comparable store sales : Increased by 5%
- Total sales : Grew by 13%
- Adjusted EBIT margin : Increased by 160 basis points
- Effective tax rate : Improved to 26.0% from 26.4% YoY
- Common stock repurchases : Totaling 269,508 shares for $61 million
Comments from Executives
CEO Michael O'Sullivan emphasized strong performance driven by sales growth and margin improvements. O'Sullivan stated, "We remain confident in the outlook for our business for the balance of fiscal 2024," also acknowledging cost pressures from ocean freight.
Dividends and Share Repurchase Program
- Share repurchase : The company repurchased shares worth $61 million during Q2, with $380 million remaining under the authorization.
Forward Guidance
- Full Fiscal Year 2024 :
- Total sales increase: 9% to 10%
- Comparable store sales increase: 2% to 3%
-
Adjusted EPS: $7.66 to $7.96
-
Q3 Fiscal 2024 :
- Total sales increase: 10% to 12%
- Comparable store sales increase: 0% to 2%
- Adjusted EPS: $1.45 to $1.55
Stock Price Movement
Following the earnings release, Burlington Stores, Inc.’s stock price increased by approximately 3.7%.
The above-discussed data and results highlight a strong financial performance and positive outlook for Burlington Stores, Inc., which continues to leverage its growth strategies effectively.
