Burlington Stores, Inc. Announces Fourth Quarter and Full-Year 2024 Financial Results
Burlington Stores, a leading national off-price retailer offering high-quality branded apparel, footwear, accessories, and home merchandise at everyday low prices, has released its financial results for the 13-week and 52-week periods ending February 1, 2025. Given that the prior fiscal year included a 14-week fourth quarter and a 53-week full year (ending February 3, 2024), comparisons have been adjusted to ensure an accurate year-over-year performance assessment.
CEO Commentary
Michael O’Sullivan, CEO of Burlington Stores, expressed enthusiasm over the company’s strong financial performance in the fourth quarter. He attributed the success to the strategic execution of the Burlington 2.0 initiative, which aims to improve merchandise offerings, optimize supply chain processes, and enhance store operations.
“Our comparable store sales growth of 6% underscores the resilience of the off-price retail model and reflects the effectiveness of our strategic initiatives,” O’Sullivan stated. “Additionally, our adjusted EBIT margin exceeded our guidance expectations by 60 basis points, and adjusted earnings per share (EPS) grew by 12% year-over-year. These results were driven by better-than-expected sales, improvements in gross margin, and supply chain efficiencies.”
For the full-year 2024, Burlington reported an 11% increase in total sales, a 4% rise in comparable store sales, and a 100-basis-point improvement in adjusted EBIT margin. The company opened 101 net new stores and relocated 31 older oversized locations, reinforcing its commitment to store growth and operational efficiency.
O’Sullivan acknowledged potential macroeconomic challenges but emphasized the company’s ability to navigate market uncertainties. “While we remain cautious about the economic environment, our off-price model has demonstrated resilience. We will continue to operate with agility, focusing on strategic inventory management and disciplined expense control.”
Fourth Quarter Fiscal 2024 Operating Results
- Total Sales: Increased 5% year-over-year, reaching $3.27 billion compared to the previous year’s 14-week period. On a 13-week comparable basis, total sales rose 10%, with comparable store sales increasing 6%.
- Gross Margin: Improved to $1.40 billion, up from $1.33 billion in the previous year’s 14-week period. On a 13-week basis, gross margin expanded 30 basis points to 42.9%, driven by a 20-basis-point improvement in freight costs and a 10-basis-point increase in merchandise margins.
- Product Sourcing Costs: These expenses, which include supply chain processing and buying costs, amounted to $217 million, compared to $210 million in the previous year’s 14-week period. As a percentage of net sales, product sourcing costs remained stable relative to the previous year’s 13-week period.
- Selling, General & Administrative Expenses (SG&A): Reached $965 million, compared to $931 million in the prior year’s 14-week period. Adjusted SG&A as a percentage of net sales was 22.8%, compared to 22.7% for the previous year’s 13-week period.
- Effective Tax Rate: Decreased to 25.0%, down from 27.5% in the previous year’s 14-week period. The adjusted effective tax rate was 24.9%, compared to 25.7% in the previous year’s 13-week period.
- Net Income: Increased to $261 million, or $4.02 per share, compared to $227 million, or $3.53 per share, in the prior year’s 14-week period.
- Adjusted Net Income: Reached $267 million, or $4.13 per share, compared to $238 million, or $3.69 per share, in the previous year’s 13-week period, excluding $4 million in bankruptcy-acquired lease expenses.
- Adjusted EBITDA: Increased to $456 million, up from $412 million in the prior year’s 13-week period.
- Adjusted EBIT: Rose to $364 million, compared to $330 million in the previous year’s 13-week period, excluding bankruptcy-acquired lease expenses.
Full-Year Fiscal 2024 Results
- Total Sales: Grew 9% year-over-year compared to the 53-week period of 2023.
- Comparable Store Sales: Increased 4%.
- Net Income: Surged 48% to $504 million, or $7.80 per share, compared to $5.23 per share in the prior year’s 53-week period.
- Total Sales (52-week basis): Increased 11% year-over-year.
- Adjusted EBIT: Rose 28% to $761 million, excluding expenses associated with bankruptcy-acquired leases.
- Adjusted Net Income: Increased 33% to $540 million.
- Adjusted EPS: Increased 34% to $8.35, compared to $6.24 in the previous year’s 52-week period.
Inventory Management
- Merchandise Inventory: Ended the year at $1.25 billion, up 15% from $1.09 billion at the end of Fiscal 2023.
- Comparable Store Inventory: Declined 3% year-over-year, indicating improved inventory turnover.
- Reserve Inventory: Comprised 46% of total inventory, up from 39% in the previous year, reflecting strategic buying opportunities for future sales.
Liquidity and Debt Position
- Total Liquidity: Ended Fiscal 2024 with $1.82 billion, including $995 million in unrestricted cash and $827 million available under its ABL facility.
- Total Debt: Stood at $1.71 billion, including $1.24 billion in term loans and $453 million in convertible notes, with no outstanding borrowings under the ABL facility.
Stock Repurchase Program
- Share Repurchases: In Q4 2024, Burlington repurchased 218,443 shares of its common stock for $61 million.
- Remaining Authorization: At the close of Fiscal 2024, the company had $263 million remaining under its current share repurchase program.
Despite ongoing economic uncertainties, Burlington Stores remains well-positioned for continued growth in 2025. The company’s agile inventory management, disciplined cost control, and commitment to the Burlington 2.0 strategy will be instrumental in navigating market fluctuations. With a focus on optimizing store layouts, improving merchandise mix, and leveraging supply chain efficiencies, Burlington aims to further strengthen its market position in the competitive off-price retail sector.
As the retail landscape evolves, Burlington’s off-price business model is expected to provide resilience against economic volatility while delivering strong value to customers and shareholders alike.
