Burlington Stores, Inc. Reports First Quarter 2025 Earnings

Core Viewpoint - Burlington Stores, Inc. reported a 6% increase in total sales for the first quarter of Fiscal 2025, with comparable store sales remaining flat, while adjusted EPS guidance for the full year is maintained at $8.70 to $9.30, excluding bankruptcy-related lease expenses [1][4][8]. Financial Performance - Total sales reached $2,500 million, a 6% increase compared to the first quarter of Fiscal 2024, following an 11% increase last year [4][5]. - Comparable store sales were flat, consistent with the midpoint of guidance, and up from a 2% increase last year [4][5]. - Net income was $101 million, translating to diluted EPS of $1.58, compared to $79 million or $1.22 per share in the same quarter last year [4][20]. - Adjusted EPS increased by 18% to $1.67, exceeding guidance [4][5]. Margins and Expenses - Adjusted EBIT margin increased by 30 basis points, outperforming guidance [4][5]. - Gross margin rate improved to 43.8% from 43.5% year-over-year, with merchandise margin expanding by 20 basis points [5]. - SG&A as a percentage of net sales decreased to 34.7% from 35.0% in the prior year, while adjusted SG&A was 26.8% compared to 27.1% [5]. Inventory and Liquidity - Merchandise inventories rose by 15% to $1,315 million, while comparable store inventories decreased by 8% [6]. - The company ended the quarter with $1,119 million in liquidity, including $371 million in unrestricted cash [9]. Outlook - For Fiscal Year 2025, the company expects total sales to increase by 6% to 8%, with comparable store sales projected to rise by 0% to 2% [7][8]. - Capital expenditures are anticipated to be approximately $950 million, with plans to open around 100 net new stores [8]. - Adjusted EPS is forecasted to be in the range of $8.70 to $9.30, compared to $8.35 last year [8].