Burlington Stores, Inc. Reports Fourth Quarter and Full Year 2024 Earnings

Core Insights - Burlington Stores, Inc. reported strong performance in the fourth quarter with a 6% increase in comparable store sales, driven by effective strategies and the strength of its off-price business model [2][4][5] - The company achieved an adjusted EBIT margin that exceeded guidance by 60 basis points, and adjusted EPS increased by 12% compared to the previous year [2][4] - For the full fiscal year 2024, total sales grew by 11%, with comparable store sales up by 4%, and adjusted EBIT margin increased by 100 basis points [2][4][5] Financial Performance - Q4 net income reached $261 million, translating to diluted EPS of $4.02, compared to $227 million and $3.53 per share in the same quarter last year [4][21] - For the fiscal year 2024, net income was $504 million, with diluted EPS of $7.80, marking a significant increase from $339 million and $5.23 per share in fiscal 2023 [4][21] - Adjusted EPS for Q4 was $4.13, exceeding guidance of $3.55 to $3.75, while adjusted EPS for the full year was $8.35, a 34% increase from the previous year [4][10] Sales and Margins - Total sales for Q4 were $3,272 million, a 10% increase on a 13-week basis compared to the previous year [5][21] - Gross margin for Q4 was $1,404 million, with a gross margin percentage of 42.9%, reflecting a 30 basis point improvement [5][21] - The company opened 101 net new stores in 2024 and relocated 31 older oversized locations, contributing to overall sales growth [2][4] Inventory and Liquidity - Merchandise inventories increased by 15% year-over-year to $1,251 million, while comparable store inventories decreased by 3% [8] - The company ended Q4 with $1,822 million in liquidity, including $995 million in unrestricted cash [11] Outlook for 2025 - For fiscal year 2025, the company expects total sales to increase by 6% to 8%, with comparable store sales projected to grow by 0% to 2% [12] - Capital expenditures are anticipated to be approximately $950 million, with plans to open around 100 net new stores [12] - Adjusted EPS is expected to range from $8.70 to $9.30, compared to $8.35 in the previous year [12]