Core Insights - Burlington Stores, Inc. reported first-quarter fiscal 2025 results with year-over-year growth in revenues and earnings, although revenues fell short of the Zacks Consensus Estimate while earnings exceeded expectations [1][3] Financial Performance - Adjusted earnings per share (EPS) were $1.60, surpassing the Zacks Consensus Estimate of $1.42, and increased by 18.5% from $1.35 in the prior year [3] - Total revenues reached $2,504 million, a 6% increase from the previous year, but below the Zacks Consensus Estimate of $2,534 million [3] - Net sales rose 6.1% to $2,500.1 million, while other revenues decreased by 7.1% to $3.9 million [3] Margins and Costs - Gross margin improved to 43.8%, up 30 basis points from the first quarter of fiscal 2024, exceeding the estimate of 43.5% [4] - Adjusted selling, general and administrative (SG&A) expenses increased by 4.8% year over year to $669.5 million, with SG&A as a percentage of net sales decreasing by 30 basis points to 26.8% [5] - Product sourcing costs rose to $197 million from $183 million in the prior year [5] EBITDA and EBIT - Adjusted EBITDA increased by 12.6% to $238.1 million, while adjusted EBIT rose by 13.1% to $146.3 million [6] Cash, Debt, and Equity - The company ended the quarter with cash and cash equivalents of $371.1 million and long-term debt of $1.64 billion [7] - Total outstanding debt was $1.65 billion, including $1.24 billion under a term-loan facility and $297 million of convertible notes [8] Share Repurchase - Burlington Stores repurchased 445,285 shares for $105 million during the quarter, with $158 million remaining under its existing share repurchase authorization [9] Guidance - For Q2 fiscal 2025, total sales are expected to grow by 5-7%, with comparable store sales projected to remain flat to up 2% [12] - Adjusted EPS for Q2 is anticipated to be between $1.20 and $1.30, compared to $1.24 in the prior year [13] - For fiscal 2025, total sales are expected to increase by 6-8%, with comparable store sales projected to rise between 0% and 2% [14]

Financial Data and Key Metrics Changes - The company reported net sales of $16.4 billion for Q4 2025, a 5% increase compared to last year's adjusted sales [12] - Full-year sales surpassed $56 billion, marking a 6% increase from the previous year [16] - The diluted earnings per share for Q4 was $1.23, up 10% from last year's adjusted $1.12 [15] - Full-year earnings per share increased to $4.26, a 13% rise from last year's $3.76 [19] Business Line Data and Key Metrics Changes - Comp store sales growth for the full year was 4%, driven entirely by customer transactions [17] - Marmax's overall sales exceeded $34 billion with a 4% increase in comp store sales [22] - HomeGoods annual sales grew to $9.4 billion, with comp store sales also increasing by 4% [24] - TJX Canada reported full-year sales of $5.2 billion, with comp store sales up 5% [25] - TJX International's full-year sales exceeded $7 billion, with comp store sales increasing by 4% [26] Market Data and Key Metrics Changes - TJX Canada experienced a 10% increase in comp sales, while TJX International saw a 7% increase [15] - The company noted strong performance in both apparel and home categories, particularly during the holiday season [7][15] Company Strategy and Development Direction - The company plans to open approximately 130 net new stores in fiscal 2026, with a focus on expanding its presence in both existing and new markets [54] - The strategy includes enhancing the product assortment and maintaining a flexible business model to adapt to market changes [30] - The company aims to increase its long-term store potential to a total of 7,000 stores [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate through current economic challenges, including tariffs and inflation [39] - The company anticipates continued strong performance in Canada and international markets, supported by seasoned management [66] - Management highlighted the importance of customer value and the ability to attract new shoppers across various demographics [9][30] Other Important Information - The company generated $6.1 billion in operating cash flow and ended the year with $5.3 billion in cash [20] - A commitment to return $4.1 billion to shareholders through buybacks and dividends was reiterated [21] Q&A Session Summary Question: What drove the stronger performance in Canada and international? - Management credited effective execution of flow plans and a focus on gift categories during the holiday season for the strong performance in Canada and international markets [61][62] Question: Are you seeing trade down at the higher end and how are customers reacting to price value offerings? - Management noted that performance was strong across all income demographics, indicating market share gains rather than a trade-down effect [75][76] Question: Can you elaborate on new customer acquisition trends and product assortment? - Management reported strong transaction growth and an increase in younger customers, with a broader product assortment planned for the spring [84][86] Question: What are your expectations for continued expansion in merchandise margins? - Management indicated that while tariffs may have a short-term impact, the company's buying strategy remains focused on providing value to consumers [95][100] Question: Can you discuss the real estate availability in the US? - Management noted that there is still significant availability for new store locations, particularly in areas where other retailers have closed [118] Question: Can you provide insights on segment margins and the gap between HomeGoods and Marmax? - Management acknowledged that while HomeGoods has improved, it may not reach Marmax levels due to inherent differences in category margins [136][137] Question: How are you selecting locations for new stores? - Management stated that they are opportunistic in site selection, considering potential transfer sales and the performance of existing brands in the vicinity [146][147]