Burlington Stores(US:BURL) ZACKS·2024-11-26 19:50Core Insights - Burlington Stores, Inc. reported third-quarter fiscal 2024 results with sales below expectations but earnings exceeding estimates, showing year-over-year growth in both metrics [1][3]. Financial Performance - Adjusted earnings per share (EPS) reached $1.55, surpassing the Zacks Consensus Estimate of $1.54, and increased by 58.2% from $0.98 in the same quarter last year [3]. - Total sales amounted to $2,530.7 million, a 10.5% increase from the prior year, but fell short of the Zacks Consensus Estimate of $2,562 million [4]. - Comparable store sales rose by 1% year-over-year [4]. Margin Analysis - Gross margin improved to 43.9%, up 70 basis points from the previous year, with merchandise margin expanding by 50 basis points due to lower markdowns and higher markup [5]. - Adjusted EBITDA increased by 30.3% to $228.8 million, with an adjusted EBITDA margin of 9.1%, up 140 basis points [7]. Expense Management - Adjusted selling, general and administrative (SG&A) expenses rose by 9.2% year-over-year to $680 million, but as a percentage of net sales, it decreased to 26.9%, down 40 basis points [6]. Cash and Debt Position - The company ended the quarter with cash and cash equivalents of $857.8 million and long-term debt of $1.54 billion, resulting in total liquidity of $1.71 billion [8][9]. Future Guidance - For the fiscal fourth quarter, Burlington anticipates a 5-7% increase in total sales and a 0-2% increase in comparable store sales [11]. - Adjusted EPS is projected to be between $3.55 and $3.75, compared to $3.69 in the previous year [12]. - For fiscal 2024, total sales are expected to grow by 9-10%, with comparable store sales projected to increase by 2-4% [13][14].