Burlington Stores Posts In-Line Q1 Earnings, But Sales Miss Estimates

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Burlington Stores Inc
BURL
reported in-line earnings for the first quarter, but the company's sales missed analysts' expectations. The Burlington, New Jersey-based company reported quarterly net income of $25.7 million, compared to $11.8 million, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings surged to $0.41 per share from $0.25 per share. Its total revenue rose to $1.19 billion from $1.14 billion, while net sales gained4.9 percent to $1.18 billion. However, analysts were expecting earnings of $0.41 per share on revenue of $1.22 billion. The average estimate among 4 Estimize users was for earnings of $0.44 per share and revenue of $1.22 billion. Burlington's same-store sales gained 0.8 percent in the quarter, versus a 2.7 percent growth in the year-ago quarter. Its gross margin widened by 160 basis points to 39.7 percent, versus 38.1 percent last year. Adjusted EBITDA rose 9.9 percent to $101.4 million in the quarter. Burlington also announced a $200 million stock buyback program. It named Jennifer Vecchio as Executive Vice President/Chief Merchandising Officer. At the end of the quarter, merchandise inventories totaled $822.3 million, compared to $707.6 million at the end of the year-ago quarter. Tom Kingsbury, Chairman and Chief Executive Officer said, "We are pleased with our 64% increase in adjusted EPS which was driven by a robust gross margin expansion. While our comp sales were positive for the ninth consecutive quarter, we were negatively impacted by the timing of IRS tax refunds, lower markdown sales due to significantly less markdown inventory, increased store closures due to weather, and receipt flow issues in three key Easter businesses. With that said, I am optimistic about our business as comparable store sales have accelerated and we are in a great inventory position to take advantage of the many opportunities we see in the market place." For the second quarter, Burlington projects adjusted earnings of $0.10 to $0.13 per share. Analysts had expected earnings of $0.13 per share. It expects net sales to rose 7 percent to 8 percent and same-store sales to rise 3 percent to 4 percent. The company also expects FY15 adjusted earnings of $2.15 to $2.25 per share, versus analysts' estimates of $2.28 per share. It projects net sales growth of 6 percent to 7 percent and comparable store sales growth of 2 percent to 3 percent. Burlington shares fell 2.16 percent to close at $53.88 yesterday.
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Posted In: EarningsNewsGuidanceprofit
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