Burlington Stores Reports Fourth Quarter and Full Year 2023 Results.
Highlights:
* On a GAAP 14-week basis, total sales increased 14%, net income was
* On a non-GAAP 13-week basis, excluding certain expenses associated with the acquisition of
* Comparable store sales increased 2%, ahead of guidance for -2% to 0%
* Adjusted EBIT margin increased 110 basis points, well over guidance for an increase of 0 to 40 basis points
* Adjusted EPS increased 25% to
* On a GAAP 53-week basis, total sales increased 12%, net income was
* Introducing outlook for FY24 Adjusted EPS of
Fiscal 2023 Fourth Quarter Operating Results
Total sales increased 14% on a 14-week basis compared to the 13-week period last year to
Gross margin on a 14-week basis was
Product sourcing costs, which are included in selling, general and administrative expenses (SG&A), were
SG&A was
The effective tax rate was 27.5% on a 14-week basis vs. 26.2% during the 13-week period last year. On a 13-week basis, the Adjusted Effective Tax Rate was 25.7% vs. 25.3% last year.
Net income was
Diluted weighted average shares outstanding amounted to 64.4 million during the quarter compared with 65.4 million during the fourth quarter of Fiscal 2022.
Adjusted EBITDA, on a 13-week basis, excluding approximately
Full Year Fiscal 2023 Results
On a 53-week basis, total sales increased 12% compared to the 52-week period last year. Net income increased 48%, or
On a 52-week basis, total sales increased 10% compared to the same period last year. Excluding approximately
Inventory
Merchandise inventories at Fiscal 2023 year-end were
Liquidity and Debt
The Company ended the fourth quarter of Fiscal 2023 with
Common Stock Repurchases
During the fourth quarter the Company repurchased 605,311 shares of its common stock under its share repurchase program for
Outlook
For Fiscal 2024 (the 52-weeks ending
Total sales to increase in the range of 9% to 11% on top of the 10% increase for the 52-weeks ended
Capital expenditures, net of landlord allowances, to be approximately
To open approximately 100 net new stores;
Depreciation & amortization to be approximately
Adjusted EBIT margin to increase in the range of 10 to 50 basis points versus the 52 weeks ended
Net interest expense to be approximately
The Adjusted Effective Tax Rate to be approximately 27%; and
Adjusted EPS in the range of
For the first quarter of Fiscal 2024 (the 13-weeks ending
Comparable store sales to increase 0% to 2%, on top of the 4% increase during the first quarter of Fiscal 2023;
Adjusted EBIT margin to increase in the range of 20 to 60 basis points; this Adjusted EBIT margin increase excludes approximately
An Adjusted Effective Tax Rate of approximately 29%; and
Adjusted EPS in the range of
The Company has not presented a quantitative reconciliation of the forward-looking non-GAAP financial measures set out above to their most comparable GAAP financial measures because it would require the Company to create estimated ranges on a GAAP basis, which would entail unreasonable effort. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable certainty but may include, among others, costs related to debt amendments, loss on extinguishment of debt, and impairment charges, as well as the tax effect of such items. Some or all of those adjustments could be significant.
Note Regarding Non-GAAP Financial Measures
The foregoing discussion of the Company's operating results includes references to Adjusted SG&A, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Share (or Adjusted EPS), Adjusted EBIT (or Adjusted Operating Income), Adjusted EBIT Margin (Adjusted Operating Margin), and Adjusted Effective Tax Rate. The Company believes these supplemental measures are useful in evaluating the performance of its business and provide greater transparency into its results of operations. In particular, the Company believes that excluding certain items that may vary substantially in frequency and magnitude from what it considers to be its core operating results are useful supplemental measures that assist investors in evaluating its ability to generate earnings and leverage sales, and to more readily compare core operating results between past and future periods. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Fourth Quarter 2023 Conference Call
The Company will hold a conference call on
For those unable to participate in the conference call, a replay will be available after the conclusion of the call on
About
For more information about the Company, visit www.burlington.com.
Investor Relations Contacts:
855-973-8445
Info@BurlingtonInvestors.com
203-682-8225
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this release, including those about our potential performance in the next five years, the external environment, as well as statements describing our outlook for future periods, are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. We do not undertake to publicly update or revise our forward-looking statements, except as required by law, even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those we expected, including general economic conditions, such as inflation, and the domestic and international political situation and the related impact on consumer confidence and spending; competitive factors, including the scale and potential consolidation of some of our competitors, rise of e-commerce spending, pricing and promotional activities of major competitors, and an increase in competition within the markets in which we compete; seasonal fluctuations in our net sales, operating income and inventory levels; the reduction in traffic to, or the closing of, the other destination retailers in the shopping areas where our stores are located; our ability to identify changing consumer preferences and demand; our ability to meet our environmental, social or governance ('ESG') goals or otherwise expectations of our stakeholders with respect to ESG matters; extreme and/or unseasonable weather conditions caused by climate change or otherwise adversely impacting demand; effects of public health crises, epidemics or pandemics; our ability to sustain our growth plans or successfully implement our long-range strategic plans; our ability to execute our opportunistic buying and inventory management process; our ability to optimize our existing stores or maintain favorable lease terms; the availability, selection and purchasing of attractive brand name merchandise on favorable terms; our ability to attract, train and retain quality employees and temporary personnel in sufficient numbers; labor costs and our ability to manage a large workforce; the solvency of parties with whom we do business and their willingness to perform their obligations to us; import risks, including tax and trade policies, tariffs and government regulations; disruption in our distribution network; our ability to protect our protect our information systems against service interruption, misappropriation of data, breaches of security, or other cyber-related attacks; risks related to the methods of payment we accept; the success of our advertising and marketing programs in generating sufficient levels of customer traffic and awareness; damage to our corporate reputation or brand; impact of potential loss of executives or other key personnel; our ability to comply with existing and changing laws, rules, regulations and local codes; lack of or insufficient insurance coverage; issues with merchandise safety and shrinkage; our ability to comply with increasingly rigorous privacy and data security regulations; impact of legal and regulatory proceedings relating to us; use of social media by us or by third parties our direction in violation of applicable laws and regulations; our ability to generate sufficient cash to fund our operations and service our debt obligations; our ability to comply with covenants in our debt agreements; the consequences of the possible conversion of our convertible notes; our reliance on dividends, distributions and other payments, advance and transfers of funds from our subsidiaries to meet our obligations; the volatility of our stock price; the impact of the anti-takeover provisions in our governing documents; impact of potential shareholder activism; and each of the factors that may be described from time to time in our filings with the
CONDENSED CONSOLIDATED STATEMENTS OF INCOME: See full results at:
https://www.burlingtoninvestors.com/news-releases/news-release-details/burlington-stores-inc-reports-fourth-quarter-and-full-year-2023
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