Burlington Stores(BURL) ZACKS·2024-08-30 13:45Core Insights - Burlington Stores, Inc. reported strong second-quarter fiscal 2024 results, with sales and earnings exceeding expectations and showing year-over-year growth [1][4][5] - The company raised its fiscal 2024 outlook due to robust performance [1] Financial Performance - Adjusted earnings per share (EPS) reached $1.20, surpassing the Zacks Consensus Estimate of $0.95, and increased 100% from $0.60 in the previous year [4] - Total revenues were $2,465.5 million, a 13.4% increase from the prior year, exceeding the estimate of $2,421 million [5] - Comparable store sales rose by 5% year over year [5] - Adjusted EBITDA increased by 43.3% to $201.8 million, with an adjusted EBITDA margin of 8.2% [8] Margin Analysis - Gross margin improved to 42.8%, up 110 basis points from the previous year, driven by lower markdowns and improved freight expenses [6] - Adjusted selling, general and administrative (SG&A) expenses rose 13.7% to $667.1 million, with SG&A as a percentage of sales at 27.1% [7] Strategic Initiatives - Burlington Stores is expanding its store footprint, having opened 36 net new stores in the second quarter, bringing the total to 1,057 locations [8] - The company plans to open approximately 100 net new stores and relocate around 30 locations in fiscal 2024, with new store sales exceeding expectations [9] Fiscal 2024 Guidance - For the fiscal third quarter, total sales are expected to increase by 10-12%, with comparable store sales projected to rise by 0-2% [12] - Adjusted EPS is forecasted to be in the range of $1.45-$1.55, up from $1.10 in the previous year [13] - The company revised its full-year sales growth estimate to 9-10%, with comparable store sales expected to grow by 2-3% [15][16] Financial Position - As of the end of the reported quarter, Burlington Stores had cash and cash equivalents of $659.9 million and long-term debt of $1.23 billion [10] - The company ended the quarter with $1.40 billion in total outstanding debt and has $380 million remaining under its share repurchase authorization [11]