The capital expenditures, net of landlord allowances, are projected at approximately $950 million, with around 100 net new store openings. Depreciation and amortisation are estimated at $385 million. Adjusted EBIT margin is expected to increase by 0 to 30 basis points (bps), excluding $13 million in anticipated expenses for bankruptcy-acquired leases.
Burlington Stores Inc expects 6-8 per cent sales growth in FY25 after an 11 per cent rise in FY24, with comparable store sales up 0-2 per cent.
$950 million in capex is planned for 100 net new stores.
Adjusted EPS is projected at $8.70-$9.30.
In Q4 FY24, sales rose 5 per cent YoY, with net income at $261 million ($4.02 per share), driven by comparable sales growth and supply chain improvements.
Net interest expense is forecast at approximately $57 million, with an adjusted effective tax rate of around 25 per cent. Adjusted earnings per share (EPS) is expected to range from $8.70 to $9.30, compared to $8.35 last fiscal, Burlington Stores said in a press release.
For the first quarter (Q1) of fiscal 2025 ending May 3, 2025, total sales are projected to grow by 5 to 7 per cent, with comparable store sales remaining flat versus Q1 FY24. Adjusted EBIT margin is expected to decline by 50 to 90 bps, excluding approximately $6 million in anticipated expenses for bankruptcy-acquired leases.
“The outlook for 2025 is very uncertain and we will plan and manage our business accordingly. That said, this is the kind of environment where the off-price model is at its best. We will manage our business cautiously and flexibly and be ready to react to whatever happens externally. This approach served us well in 2024 and we hope for the same in 2025,” said Michael O’Sullivan, chief executive officer (CEO) at Burlington.
Full fiscal 2024 (FY24) results
For FY24 ended February 1, 2025, Burlington reported total revenue of $10.63 billion. The net sales rose to $10.62 billion, while other revenue declined slightly to $18.08 million. The cost of sales increased to $6.03 billion. Selling, general, and administrative (SG&A) expenses grew to $3.55 billion.
The company reported $12.92 million in long-lived asset impairment charges. Net other income improved to $48.21 million. Interest expenses declined to $69.52 million, while income before taxes grew to $674.81 million. Diluted net income per share increased to $7.80, compared to $5.23 in the prior fiscal, reflecting improved profitability.
“Taking 2024, total sales increased 11 per cent, comparable store sales increased 4 per cent, and Adjusted EBIT Margin increased 100 basis points. We opened 101 net new stores in 2024 and relocated 31 of our older oversized locations. We are very pleased with all these metrics. They represent significant progress towards our longer-term financial goals,” said O’Sullivan.
Performance in fourth quarter (Q4) FY24
In Q4 FY24, Burlington Stores reported total sales of $3.27 billion, a 5 per cent YoY increase. The gross margin rose to $1.40 billion, expanding 30 basis points (bps) to 42.9 per cent. Product sourcing costs remained flat as a percentage of net sales, at $217 million versus $210 million last year. SG&A expenses increased to $965 million, with adjusted SG&A at 22.8 per cent of net sales.
The net income in Q4 grew to $261 million ($4.02 per share), while adjusted net income reached $267 million ($4.13 per share), excluding $4 million of bankruptcy-related lease expenses.
“We are pleased with our strong performance in the fourth quarter. Comparable store sales increased 6 per cent. This growth was driven by deliberate strategies that were well executed by our merchants, supply chain and stores teams. The fourth quarter demonstrated the merits of Burlington 2.0 and the strength of our off-price business model,” added O’Sullivan.
“We also saw very strong earnings growth during the fourth quarter. Adjusted EBIT Margin was 60 basis points above the high end of our guidance, while adjusted EPS increased 12 per cent. This performance was driven by ahead of plan sales, an increase in gross margin, and better than expected progress in our supply chain initiatives,” continued O’Sullivan.
Fibre2Fashion News Desk (SG)
